Globe Telecom Inc. has asked the National Telecommunications Commission (NTC) to compel third telco DITO Telecommunity Corp. to pay P622 million for interconnection penalties allegedly due to fraudulent calls.
In a filing with the NTC dated Aug. 2, 2022, Globe asked the telecom regulator 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.
Globe said the P622 million penalties were brought about by fraudulent calls placed through DITO’s network to Globe, bypassing proper voice traffic channels.
Globe explained an average of 1,000 fraudulent calls — identified as international in origin but masked as local calls — are allowed to pass through DITO’s network to Globe users every day, in violation of interconnect rules.
Globe said the total penalty covering one year, from July 2021 to July 2022, has ballooned with DITO’s refusal to compensate the company, defying provisions of its interconnect agreement on bypass traffic.
In comparison, zero or 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.
To date, reports of fraudulent calls continue to illegally pass through DITO’s network.
Globe 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,” the company said in its pleading.
Globe added it has been working through the legal route to fix the matter and ensure that customers will continue to enjoy cross-network interconnectivity.
Globe said it has remained true to its interconnectivity deals with DITO, including domestic voice and short messaging service in November 2020, landline in March 2021 and the cellular mobile telephone systems international gateway facility in September 2021.
These 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.
In response, Adel Tamano, DITO chief administrative officer, said in a statement the P622 million alleged interconnection penalties are international simple resale (ISR) calls.
“These ISR calls are not made by DITO. Rather, these are fraudulent calls made by third parties — and DITO is equally a victim of such calls. Additionally, there are also ISR calls from Globe to DITO. It is not true that DITO has not taken steps to stop ISR calls to Globe.
We have the data and the facts to show the steps undertaken by DITO to minimize these ISR calls,” Tamano said.
Tamano added the NTC is not a collection agency and if Globe has any monetary claims against DITO, Globe should go to the proper tribunal to enforce its claims.
DITO stressed that it is pursuing the case it filed with the Philippine Competition Commission.
“We are doing this to fulfill our mandate to provide true competition in the telecom industry and to ensure that the Filipino people are given world-class telco services they rightfully deserve,” Tamano said.
On Monday, DITO filed two separate cases before the PCC against Globe and Smart Communications Inc. for the alleged anti-competitive practice in their interconnection deal signed last year.
