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Globe: DITO violated the interconnect agreement, asks NTC to fine them PHP 622 million

Local telco giant Globe today has asked the National Telecommunications Commission (NTC) to require DITO Telecommunity to pay PHP 622 million for violating the interconnect agreement.
Globe vs DITO

DITO violated the interconnect agreement with Globe?

Globe said that the penalties were brought about by fraudulent calls placed through DITO's network to Globe, bypassing proper voice traffic channels.

The telco giant claimed that there is an average of 1,000 fraudulent calls–identified as international in origin but masked as local calls–that are allowed to pass through DITO’s network to Globe users every day, in violation of the interconnect rules.

The penalty is covering one year from July 2021 to July 2022. It has ballooned since DITO is adamant in refusing to compensate Globe, defying provisions of its interconnect agreement on bypass traffic.

In comparison, Globe claimed that no bypass traffic has been allowed to pass from Globe to DITO due to its advanced monitoring systems and sophisticated network protection from illegal calls.

Globe added that reports of fraudulent calls continue to illegally pass through DITO's network.

Globe also asked NTC to authorize its temporary disconnection of interconnection trunk lines with DITO until the latter has "taken positive and concrete steps to stop all illegal bypass operations emanating from its network" and paid all its outstanding liabilities to Globe for fraudulent calls.

The company also pointed out that fraudulent traffic continues to rise despite DITO's assurance that it has improved its Fraud Management System capability to block illegal calls.

Clearly, DITO has not only failed to compensate Globe, it also has not taken any serious actions to curtail bypass activities emanating from its network and terminating in Globe’s. Indeed, these bypass activities have not waned but have in fact continuously increased over the said period. DITO’s twin failures to check these bypass activities and pay Globe what it is justly due have worked on a continuing serious prejudice against Globe, Globe said in its pleading.

Moreover, these unabated illegal activities have placed the interconnection trunks at serious risk of abuse and the resultant undue congestion of the network, to the detriment of the subscribers, it said.

Globe also said that it has been patiently working through the legal route to fix the matter and ensure that customers will continue to enjoy cross-network interconnectivity and has remained true to its interconnectivity deals with DITO which includes domestic voice and SMS in November 2020, landline in March 2021, and the Cellular Mobile Telephone Systems International Gateway Facility (CMTS - IGF) in September 2021.

To recall, t
hese agreements allow local voice and text traffic to pass between users of the two networks, and also international mobile calls through DITO’s and Globe’s international partners or via roaming service. 

The parties completed local interconnection for Globe-DITO mobile voice and SMS in April 2021 and the Innove/Bayan-DITO local landline and mobile interconnection in May 2022. The Innove/Bayan–DITO IGF (international) interconnection is in the works and set for completion within the year.

The move is also part of the company's commitment to comply with directives of the National Telecommunications Commission (NTC).

Globe reiterates its commitment to comply with regulatory requirements while continuing to advocate fair business practices. 

This move by Globe comes after DITO claimed that Globe and Smart "abused" their dominant position and they are experiencing a "state of non-connection" with the dominant telcos.

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