PLDT to meet AT&T on call rate dispute

Local telecommunications giant Philippine Long Distance Telephone Co. (PLDT) has acceded to the request of US telecommunications firm AT&T for discussions in Hong Kong this week to resolve the current deadlock in call rate charges that has resulted in disruption of services along the US-Philippine call route.

The meeting between PLDT and AT&T officials has been scheduled today and tomorrow.

But while PLDT has agreed to meet AT&T, other Philippine telco firms that received similar invitations from the US company refused.

Bayan Telecommunications (BayanTel) vice president for international business Sherry Ann Supelana said they are not sending a representative to Hong Kong "but we remain engaged in negotiations with them to reach a mutually acceptable resolution."

It was learned that other Philippine telcos refused the invitation. The firms include Globe Telecom, Smart Communications and Digital Telecommunications Phils. Inc. (Digitel).

Smart legal and carrier relations head Rogelio Quevedo said they have declined the invitation from AT&T, saying the talks would not be held on commercial basis.

AT&T earlier won its bid to stop Philippine telcos from increasing their termination rates for calls from the US to the Philippines after the US Federal Communication Commission (FCC) international bureau filed its petition with MCI-Worldcom.

In its order, the FCC bureau directed all US facilities-based carriers to stop all payments to Philippine carriers until the services to AT&T and Worldcom are restored.

The two US firms have alleged that following their refusal to agree to the Philippine telco’s increase in termination rates, calls from the US originating from their circuits were blocked.

PLDT officials revealed that they received an invitation from AT&T last March 11 to meet with them in Hong Kong. "PLDT plans to meet with AT&T officials in Hong Kong to hopefully work out a resolution to the issue. However, we made it very clear with AT&T officials that we must make the (National Telecommunications Commission) directive that we can terminate service in the absence of any agreement as the term of reference," said PLDT vice president and spokesman Butch Jimenez.

A top PDLT official, however, said they are not really expecting anything beneficial from the meeting but stressed they would only want to hear what the AT&T officials had to say.

"In the first place, AT&T has said that it wants to negotiate based on rates that are even lower than the expired rates," the official told The STAR.