NTC cited for settlement of Globe, Digitel dispute

Digitel Telecommunications Inc. and Globe Telecom Inc. said the National Telecommunications Commission (NTC) was pivotal in settling their differences and working out a mutually-acceptable compensation formula between them.

"The NTC patiently prodded and encouraged the parties to come to an amicable settlement of their interconnection dispute, emphasizing at all times the bilateral nature of interconnection agreements and the need to serve the public," the two companies said.

Digitel and Globe had earlier issued statements that aggravated their dispute, as they tended to take hard-line positions and to just let the NTC resolve their differences administratively.

"Still, the NTC persisted, and when the aprties admitted that the statements and threats issued were not called for, they agreed to let their top officials talk it over one more time," the two companies said.

Globe assistant vice president Froilan Castelo said: "We regret the misunderstanding these statements caused all parties. Nevertheless, we are pleased that an agreement has finally been reached and the dispute settled."

For his part, Digitel manager for regulatory affairs Ricardo Dira acknowledged the "extensive behind-the-scenes work conducted by the three NTC commissioners, including deputy commissioners Kathleen Heceta and Armi Jane Borje, to ensure that the parties settle their differences on their own and not because of the NTC."

Digitel and Globe agreed on a mutually acceptable compensation formula to compute access charges from September 1999 to June 2001.

Digitel agreed to pay Globe P167 million in unpaid access charges. The amount represents the "undisputed amount" that Digitel owes Globe.

The two parties also agreed to validate traffic disputes so that a reconciliation statement can be mutually arrived at.

The settlement enabled users of Digitel and Globe to call each other.

Digitel has made an initial payment of P86 million to Globe. The company agreed to pay the balance in three equal installments of P27 million starting next month until January next year.

Some P20-million worth of "disputed receivables" would be settled by working "in good faith to exchange and verify call data records," Digitel said.

The access charges, incurred from September 1999 to June this year, were related to the interconnection agreement between the two companies.

Globe is jointly-owned by Ayala Corp., Singapore Telecommunications International and Deutsche Telekom AG.

Digitel is a unit of JG Summit Holdings Inc., the conglomerate controlled by the Gokongwei family, which also has interests in banking, petrochemicals and food.