Globe backs NTC stance of mandatory IP peering

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Monday, June 2, 2014


GLOBE Telecom supports the National Telecommunications Commission’s (NTC) position that a mandatory IP peering among carriers should be put in place to improve internet services in the country.

The telecommunications provider maintains that there should not be any access charge to this to maintain or lower internet costs.

“A mandatory IP peering among major internet service providers (ISPs) in the country would greatly improve internet speeds. The absence of an effective and applicable IP peering agreement among major telecommunications providers in the Philippines has been huge deterrent in further advancing internet development in the country. It is high time that the NTC addresses this issue squarely amid mounting calls of Filipino consumers for faster internet speeds,” Globe General Counsel Froilan Castelo said.

At a recent joint hearing of the Senate committees on trade and public services, the NTC cited the lack of IP peering among local ISPs as one of factors that contribute to slower internet speeds in the country.

The regulatory body pointed out that in the case of Singapore and South Korea, for instance, internet content are mostly generated internally, as a result of an effective IP peering policy, which in turn enhances internet speed.

IP peering allows one ISP to connect with another provider, giving both entities a direct route for fast exchange of information.

“Establishing a direct connection among ISPs would greatly improve throughput and latency performance of ISPs and enhance bandwidth utilization. This will enable ISPs like Globe Telecom to provide faster internet speeds for their respective customers,” Castelo added.

According to him, around 15 percent to 23 percent of all internet traffic in the Philippines is domestic. This means that domestic traffic originates in the Philippines and terminates in the Philippines. The origin and destination may be as far away as across the country or as close as across the street from each other.

However, instead of remaining local, up to 70 percent of this local traffic is being routed externally, such as in Hong Kong and the US, before returning to the Philippines. This means that instead of getting routed directly between origin and destination, data is routed outwards through large ISPs that sell transit before the data is routed back to its target destination, thus causing delay in data transmission and effectively slowing internet connectivity.

Castelo emphasized that the absence of applicable IP peering agreement among major ISPs in the Philippines makes the country dependent on international cables, which poses a threat to the overall internet connectivity of the country in times of disaster.

He cited as a case in point the 2008 earthquake in Taiwan that caused breakage of major international cables, resulting in inaccessibility of even local internet sites and government websites.

Also, lack of an applicable domestic IP peering policy in the Philippines entails huge operating costs for ISPs like Globe Telecom, he added. (PR)

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