Olongapo Telecom & Information Technology

Saturday, January 21, 2006

Memo exposes 3G marketing war in RP

By Erwin Lemuel Oliva, INQ7.net

An alleged internal memo exposed by a Filipino blogger has revealed a brewing marketing war between two rival Philippine mobile phone operators recently granted government licenses to operate third generation (3G) mobile phone services.

A January 13, 2006 entry in tech local personality Miguel Paraz's Random Thoughts blog titled "The Truth Behind Globe Telecom 3G," showed an alleged Globe internal memo debunking claims of its rival Smart Communications.

The alleged internal memo at, showed a timeline that compared Globe's 3G marketing campaign against Smart.

This same blog entry was eventually picked up by Pinoytech blog, a local blog on Philippine technology (www.pinoytechblog.com).

The alleged Globe internal memo described each Globe initiative launched since July 2005 and indicated that it was written in reaction to recent advertising campaigns launched by Smart.

"Before you react to the screaming billboards and advertisements of the competitor, take the time to know what we have done to ensure we are truly ahead in the 3G battle," it added.

One Smart marketing campaign cited involved a 3G call between the television personality Kris Aquino and Philippine Long Distance Telephone Co. chairman Manuel Pangilinan.

INQ7.net reached Jones Campos, assistant vice president for Globe Telecom public relations, for comment, but he declined to make a statement.

The National Telecommunications Commission (NTC) granted government licenses to four operators to operate 3G in December 2005.

Smart Communications Inc. and Globe Telecom were among the local operators given a 3G license. The others were Digital Telecommunications and Connectivity Unlimited Resources Enterprises Inc., the newest player.

Smart got a perfect score on a grading system used by the NTC to gauge the capability of local operators to massively and effectively provide 3G services. It was assigned 15 Megahertz-wide spectrum of frequencies. Globe, which was a point shy from Smart, was granted 10Mhz-wide spectrum of frequencies.

In earlier reports, Smart said that the company started preparations for a seamless transition to 3G as early as five years ago. Globe officials disagreed.

3G provides faster transmission speeds that make high bandwidth applications, such as video calls and video streaming possible. Browsing the Internet and downloading large files would be fast with 3G as this technology offers full mobility, richer experience, and greater convenience.

A survey by the Global mobile Suppliers Association in December indicated that there are now 100 3G/WCDMA networks in 42 countries in the world.

WCDMA is a global standard that enables enhanced mobile multimedia services -- music, TV and video, rich entertainment content, and Internet access.


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