Olongapo Telecom & Information Technology

Tuesday, August 02, 2005

Globe, Smart turn to short-term, unlimited text messaging

UNLIMITED voice call promos have come to a dead end--at least for the two major players, Smart Communications Inc. and Globe Telecom Inc.

The trend now, according to the two giants, is the offer of overnight, unlimited short messaging, or texting, promos for prepaid customers.

The promos, they said, would keep subscribers hooked without straining the network and upsetting postpaid customers.

The National Telecommunications Commission believed that the mobile telcos also suffered from the illegal activities of bypass operators offering call-all-you-can promos.

Smart has started offering its text-all-you-can promo. Its 2-day rate goes for P30, while its for 4-day rate goes for P60. The promo started on July 27 and would end on Aug. 26, unless extended.

On July 28, Globe started selling a similar deal. Globe's unlimited, 24-hour texting rate goes for P15.

All that Globe subscribers have to do is to text "nonstop" to 2870. The second-ranked player is continuing with its cheaper call and text rate deal called Celebrate.

Smart, meanwhile, scrapped its unlimited call promo because of the burden it placed on its network. Globe said it had long abandoned its text-all-you-can pricing because it was not sustainable if it wanted to maintain good network quality.

"We don't believe in unsustainable unlimited offerings running for long periods," said Globe assistant vice president Froilan Castelo. "I think this new promo is sustainable because it will not affect network quality."

What is more realistic, according to Castelo, is a cheaper tariff like Celebrate, which slashed call rates by 60 percent and text charges by half.

Cabarios said the giants noticed an increased bypass activity when they were offering unlimited calls.

These illegal operations usually ride on the network of mobile carriers to facilitate illegal long distance operations by disguising international calls as local calls.

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