Globe cuts text messaging rates

Globe Telecom Inc., the Philippines’ second-largest mobile service provider, will cut rates for its text messaging service in an effort to lure its rivals’ subscribers and boost revenues.

The Ayala family-led company earlier said the industry would see revenues drop to single digits this year owing to a slowdown in subscriber base expansion.

Ronald O. Solis, chief of the National Telecommunications Commission (NTC), said the regulator approved Globe’s request to cut text rates to P0.90 from P1 for messages sent among Globe subscribers and Touch Mobile subscribers. The promo also applies to Globe text messages sent to subscribers of rival networks.

The new promo, which may set off a new price war in the text-messaging front, will run from April 15 to May 15, 2006.

At end-2005, Globe’s wireless subscriber base reached 12.4 million, while its main rival Smart Communications Inc. and its subsidiary Pilipino Telephone Co. (Piltel) had a combined subscriber base of more than 20 million.

Froilan Castelo, Globe assistant vice president for corporate and regulatory affairs, said the company hopes to raise volumes by lowering text message rates.

"We want to give more value to our subscribers," he added.

Castelo said the reduced price will also be offered to messages sent to subscribers of rival carriers. "There is no need to inform [our rivals] on the new price as long as we pay access charges," he said.

William Pamintuan, Digital Mobile Philippines Inc. senior vice president, said he will comment on Globe’s lower rates once the promo begins.

Wo Rosete, Smart media relations officer, said, "We don’t comment on the action of our rival." Both telcos have yet to offer lower text messaging rates.

NTC approves extension of reduced international text, IDD rates

Globe also obtained an approval from the NTC to extend the company’s reduced international short messaging service and international direct dialing (IDD) rates to Singapore from April 11 to May 10, 2006.

The promo rate of P1 per text message or SMS (short messaging service) shall be offered to all Globe postpaid and prepaid subscribers from the current rate of P10 for postpaid and P15 for prepaid.

For IDD, the promo rate is P7.50 a minute for the first minute for Globe and TM postpaid and prepaid subscribers for calls terminating to Singtel Mobile numbers.

The NTC also approved the extension of TM to TM discounted SMS offer of P0.75 for another 30 days from April 15 to May 14.

For call service, the company will extend the TM "Todo Tawag 15/15" from April 16 to May 15.

Subscribers can avail of the P15 for 15 minutes call promo by dialing 800 plus the 10 digit TM number. The promo is unavailable for international calls or while the subscriber is on international roaming mode.

Globe will also extend the IDD promo rate of P7.50 per minute to the United States and Canada.

Lastly, the company will extend the Globe to Globe and TM to TM per second call rate promo available to all subscribers from April 16 to May 15, 2006.

To avail of the P0.10 call promo, subscribers have to dial 232 plus the 10-digit Globe number and 803 plus the 10-digit TM number calls.

Calls from Globe to TM subscribers and vice versa will be charged regular inter-network call rates.

By DARWIN G. AMOJELAR
The Manila Times Reporter