ISP providers in ASEAN countries with high-speed internet recognize that peering results in lower costs for all.
After acquiring San Miguel’s assets, which include a 700MHz frequency, PLDT and Globe customers can expect a much faster internet speed with a full implementation 90 days after its 30-day initial phase.
According to this graph from We Are Social, Philippines has the 4th lowest average internet speed in the world with only 2.8 mbps and currently second in Asia.
These telco giants have entered into a bilateral Internet protocol (IP) peering signed on Thursday, June 16, 2016.
Peering is a voluntary interconnection of administratively separate Internet networks for the purpose of exchanging traffic between the users of each network. In this agreement, neither party pays the other in association with the exchange of traffic; instead, each derives and retains revenue from its own customers.
IP peering keeps the local exchange of traffic within the borders of the country. This means local data will no longer be routed outside the country before finally sending it to the receiver, thus, making the local network faster.
“For example, if you’re on a Globe connection and you want to send an emailto a PLDT connection, they don’t connect with each other. They don’t peer witheach other.”
“What will happen is that your email through your Globe ISP will go out of the country.”
He explained that it might route somewhere, whether it be Singapore or Hongkong or some other country. He added that it will then find its way to PLDT, then will use PLDT’s network to get back to your friend.
— Victor Barreiro Jr talked with DOST-ASTI’s Bayani Lara about the same topic in 2014 where PLDT disagreed with the idea. (Via Rappler)