Solon condemns US ‘commercial terrorism’

Congressman Prospero Pichay, chairman of the House defense committee, condemned yesterday what he called the "commercial terrorism" by the US Embassy which allegedly has been pressuring the Philippine government to give in to the demands of giant American telecommunications firms.

In a privilege speech at the House, Pichay cited media reports that US Embassy officials have been calling the Palace and the Department of Transportation and Communications on behalf of AT&T and MCI WorldCom and asking them to roll back call termination or settlement rates to pre-February levels.

"I must inform you that there is a form of terrorism being inflicted on us that I call commercial terrorism. And, must accuse an instrumentality of the US government – the guardian of the international community – as the perpetrator of this brand of terrorism," Pichay said.

Call termination rates, he explained, were the charges that the foreign cameras pay so that Philippine telecom companies would deliver an incoming international call to their subscribers.

Starting Feb. 1, these rates were increased from nine US cents to 12-US cents per minute for landlines, and from 12 US cents to 16 US cents per minute for cellphones.

Pichay said Philippine companies say these rates are well below the US Federal Communications Commission’s (FCC) benchmark rate of 19 US cents, and are far below the target settlement rate proposed by the International Telecommunications Union of 23 & US cents for countries like the Philippines with a telephone density of from one-five telephones per 100 Filipinos.

AT&T and MCI WorldCom are opposing the new rates and have petitioned the US FCC to order Philippine carriers to keep their circuits open and to maintain the old rates. should the Philippine carriers refuse, Pichay said, both firms have asked the FCC to order all US carriers to stop payments to all Philippine carriers.

The Lakas solon called on the government to keep out of this commercial dispute between private companies. He decried the US Embassy for "acting not like diplomats but like private lobbyists for AT&T and WorldCom."

"We have an ugly sight, the world’s only remaining superpower, in a brazen attempt to force our government to do the bidding of American commercial interests. And mind you, this to the detriment of our local telecom industry, that provides thousands of jobs and billions of pesos in economic benefits to our people," he said. "The local US Embassy (is) being used as a gunboat in an attempt to browbeat our government into submission."

In line with this, the Surigao del Sur solon filed a "Resolution directing the appropriate House committee to conduct an inquiry, in aid of legislation, into the conduct of foreign companies lobbying for intervention of governments in the management of Philippine business.