PHILIPPINE Long Distance Telephone Co. (PLDT) is insisting on its right to collect transport charge, or fees for carrying calls, from Philippine Telegraph and Telephone Corp. (PT&T).

The phone giant reminded PT&T that the latter should shoulder the cost of the transmission link from PLDT’s side based on the number of trunks coming from PT&T LEC (local exchange carrier) area connected to a PLDT tandem exchange outside the PT&T-assigned service area.

This is stated in the interconnection agreement both parties signed in December 1995, PLDT said. The fee for each trunk is P500.

PT&T, however, wants PLDT to stop billing the Santiago-owned firm on the basis of a provision of the NTC’s circular entitled “Rules on Interconnection of LEC in local calling areas” that was issued in July last year.

PT&T understood that the P519,120 monthly access charge being billed by PLDT against PT&T for all trunks that interconnect both exchanges in the 02 service area will no longer be billed because of a provision which states that “both PT&T and PLDT shall honor rent free… which refers to LEC-LEC access outside PT&T service area, but  within the same ‘02’ calling area.”

Accordingly, PT&T asked PLDT to amend their interconnection agreement.

But PLDT said there is no need to amend the agreement because the NTC circular does not mean the cancellation of the monthly bills PLDT sends to PT&T.

“PLDT does not impose transport charge in common service areas and only do so when PLDT has to transport traffic for PT&T from the POI [point of interconnection] to several of PLDT’s tandem switches in different areas outside of PT&T’s service area. This is exactly what the circular provides,” said PLDT lawyer Fernando Sobierra III.

The phone giant said that PT&T wants to amend their agreement so as not to pay its dues. “Basically, PT&T wants to amend paragraph 8.1.2 of the interconnection agreement in order to justify its nonpayment of the transport charges as provided therein,” added the PLDT official.

PLDT said that industry players accept the concept of transport charge as the fees are designed to pay a company for its facilities that carry calls from another network.

For areas where a carrier has no physical presence and must rely on existing facilities of an established carrier, payment is necessary for maintenance and expansion costs.

“Removing the right to charge transport cost results in the unfair sharing of responsibilities between parties, thereby depriving the incumbent from earning appropriate returns on capital invested,” said PLDT.

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PHILIPPINE Long Distance Telephone Co. (PLDT) is insisting on its right to collect transport charge, or fees for carrying calls, from Philippine Telegraph and Telephone Corp. (PT&T).

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