Digitel works on linkage with other telecom firms

Gokongwei-owned Digital Telecommunications Phils. Inc. is now working on its interconnection agreement with all the other carrier so that Digitel mobile phone subscribers can connect to landline and cellular subscribers of other public telecommunication entities.

But this early, carriers such as Globe Telecom and Smart Communications Inc., although willing to interconnect, said interconnection should be done only when Digitel has commercially launched its mobile phone operation in April or May next year.

Digitel, being an international gateway facility (IGF) firm and a local exchange carrier (LEC), already has interconnection agreements with Philippine Long Distance Telephone Co. (PLDT), Smart, Globe, Isla Communications Inc., Pilipino Telephone Corp., and Bayan Telecommunications Inc.

But with its foray into the highly competitive cellular mobile telephone system (CMTS) business starting second quarter of 2002, Digitel needs to forge a new interconnection agreement with the other carriers. The new agreement would be expanded to include interconnection for both voice and data, particularly short message service (SMS) or text messaging.

The soft launch for Digitel’s global system for mobile communications (GSM) mobile phone service is slated in December this year.

"We are currently working on our interconnection with the other carriers. We started submitting our data for interconnection some two months ago. Bilateral negotiations are ongoing, Digitel senior vice president for legal and intercarrier services William Pamintuan said.

Pamintuan explained that interconnection agreements should be forged before December even though the Digitel’s CMTS would not have any subscriber yet at that time.

Other carriers believe otherwise. "We are not aware of any bilateral negotiations going on with us. Interconnection cannot happen immediately. In Digitel’s case, who will you interconnect with when they have no subscribers yet," Globe assistant vice-president Froilan Castelo said.

Smart agreed with Globe. "It (interconnection) does not happen overnight," a Smart official noted.

But Pamintuan stressed that "under the rules, interconnection should take place once there is a facility already in place."

"The purpose here is to interconnect the facility first before the subscribers. It is wrong to say that because we have no customer yet then there will be no interconnection. What needs to be interconnected first is the facility," Pamintuan said.

Except for the postponement of Digitel’s planned bond float to partly finance the CMTS business, Pamintuan said all systems are go for the soft launch in December and the commercial launch early next year.

Digitel is also seeking two congressional franchises for its mobile and data operations as a requirement set forth by its existing foreign partners. Digitel is 57 percent owned by JG Summit of the Gokongweis. Telia AB of Sweden has a 10 percent interest in the firm. Digitel officials said they can proceed with the CMTS launch even without the franchise since the company was already given a provisional authority to operate by the NTC.

As far as a requirement by government for all cellular phone service providers to install 400,000 new fixed lines, the NTC may requires Digitel to put up only an additional 100,000 since it has already exceeded its requirements under Executive Order 109 particularly that on IGF firms.

EO 100 provides that all IGF firms must install 300,000 fixed lines within three years from issuance of its provisional authority from the NTC. CMTS companies are required to install 400,000 lines.

But Digitel already has more than 600,000 fixed lines in place, many of which are still unsubscribed.

The NTC said it might grant Digitel’s request to credit the excess on the condition that the commission will instruct the firm where to roll out the remaining 100,000 lines, particularly in remote or missionary areas.