US FCC lifts order vs PLDT unit

The US Federal Communications Commission (FCC) has lifted the stop-payment order issued against PLDT subsidiary Subic Telecom, thereby allowing US telecommunications companies to resume payments to the Philippine carrier.

The FCC earlier gave the go-signal for US facilities-based carriers to resume payments to PLDT, Smart Communications, Globe Telecom, Bayan Telecommunications (Bayantel), and Digital Telecommunications (Digitel).

According to the FCC, the order was lifted after representations were made by American carriers that Subic Telecom has already restored to normalcy its circuits.

The FCC international bureau in March last year ordered all US carriers to suspend immediately payments due to these Philippines carriers for calls made from the US to the Philippines after the six local carriers unilaterally raised their termination rates.

In retaliation, Philippine carriers blocked their circuits to prevent calls from US carriers, particularly AT&T and Worldcom, from coming in.

But following talks with their American counterparts, the six companies were persuaded to unblock their circuits and worked out interim rate agreements with the US carriers pending a commercial rate agreement.

Despite the FCC’s lifting of the stop-payment order, investigations by the Honolulu grand jury continue on a complaint filed by the US Department of Justice that Philippine carriers violated US anti-trust (monopoly) laws in raising their termination rates. Philippine carriers have tapped US counsels to defend their case.