The Philippines’ two major operators – PLDT and Globe Telecom – agreed to sharply reduce the interconnection rate for both fixed and mobile voice calls following pressure from the telecoms regulator for them to cut retail prices.

The National Telecommunications Commission set the interconnection rate at a maximum of PHP2.50 ($0.05) per minute, a 38 per cent cut from the previous PHP4.00/minute fee.

The new rate needs to be implemented by 1 January 2017.

Under the agreement, both operators committed to take steps to lower retail rates for voice and ensure that sufficient circuits or routes are available for efficient transmission of calls, Globe said in a statement.

“We are confident that a reduction in the cost of interconnection for voice calls will eventually redound to a more robust economy, providing our customers with an affordable and easily accessible way of communication,” Globe chief technology and information officer Gil Genio said.

The NTC said the decision to lower interconnection rates is in line with efforts to reduce communications costs, maintain and foster fair competition in the telecoms industry as well as to make mobile voice service more affordable to the public.