Internet exchange launched 
Philippine Daily Inquirer - 5 July 1997 

TELECOMS giant Philippine Long Distance Telephone Co. launched the other day its $600,000 internet exchange which would ensure faster internet transactions and cheaper cost of accessing information technology, 

PLDT first vice president Cesar Reyes explained the Philippine Internet Exchange would make Metro Manila the access point for web transactions. At present these calls are mostly routed to the United States where a number of host servers are located. 

He noted the facility could reduce trunk volume by 30 percent and, consequently, minimize traffic. 

The current practice among internet service providers was to rent out expensive, international leased circuits. 

Smaller companies have to ride on the lines of dominant firms and make do with minimal capacities which slow down transactions. 

The PLDT facility offers independence from international traffic conditions as it keeps transactions within  the country, eliminates the need for local information to be routed to overseas servers. 

Initially, PLDT has lured five internet service providers to join the exchange. It has signed a peering agreement with PLDT subsidiary Infocom, and four other providers Iphil, Mozcom, Virtualink and
WorldTel Philippines. 

Reyes said the five internet firms would rent out PLDT’s facility. The five, in turn, could also serve as host to smaller internet companies. 

PLDT’s recovery capital would come in the form of lease. The facility could also prompt an increased subscriber base as more Filipinos would tap the information highway, the official added. 

The reduction in traffic also augurs well for the company and telephone subscribers not only of PLDT but also others like BayanTel. Subscribers of BayanTel have been complaining of poor connection with PLDT because of clogged lines. 

Officials said the Internet exchange could help decongest PLDT lines and improve its interconnection with other carriers. 

The idea to connect Filipino IT firms through a common backbone and localize Internet traffic first came up two years ago. The resolve to come up with the facility strengthed last year when the Internet business improved dramatically last year. 

 Reyes said from around 50 Internet providers in 1995, the number soared to about 130 last year. 

In October last year, PLDT presented its project to 15 IT firms but only five companies responded positively.