PLDT to cut foreign currency adjustment rate by 11%

Philippine Long Distance Telephone Co. (PLDT) is bringing down this month foreign currency adjustment (FCA) rate by 11 percent for local service rates. In a filing with the National Telecommunications Commission (NTC), the phone giant said the downward adjustment was brought about by a stronger peso, which stood at an average of P46.70. “By way of currency adjustment, [PLDT] will implement eleven percent downward adjustment on its local service rates with forex (foreign exchange rate) rate of P46.70 effective June 1, 2007," the company said. In May, PLDT implemented a six-percent decline on its local service rates when the peso stood at an average of P47.80 to a dollar. PLDT has more than two million landline subscribers. Phone firms are required to inform the NTC to submit a monthly update on currency adjustment. As a rule of thumb, for every 10-centavo adjustment in the exchange rate translates to one-percent increase or decrease in the company’s rate base. PLDT is charging residential subscribers about P600 a month, inclusive of taxes and adjustments. PLDT business subscribers, meanwhile, are billed about P1,200 a month. PLDT’s present base of reference for currency adjustment is P11 to $1. This was the rate obtained as of August 12, 1983 when its local service rates were provisionally approved. - GMANews.TV