Globe pushes interconnection with other telcos

GLOBE TELECOM, Inc. wants to beef up interconnection with Philippine Long Distance Telephone Co. (PLDT), Bayan Telecommunications Inc. (Bayantel), and Digital Telecommunications Philippines, Inc. (Digitel) this year in key cities outside the National Capital Region.

Froilan Castelo, Globe Telecom's head of corporate and legal services, said in a statement the company wanted to complete more interconnection agreements by the end of this year.

"Even if competition in the local telecommunication industry is intense, we must be able to put this aside for the public good. Interconnection is a win-win for everyone," he said. Globe Telecom pointed out that interconnection meant residents and business establishments in the provinces and cities can make local calls to other telcos without extra charges.

"Without interconnection, a Globe Telecom landline subscriber has to pay long-distance rates to call a Digitel, PLDT or Bayantel landline subscriber within the same area, and vice-versa," it said.

The company plans to pursue interconnection talks with PLDT for Zamboanga City, Baguio, and Pampanga within this year, he said. "The interconnection plans are done following the successful interconnection of the two telecommunication companies in Davao City last July. Also in the lineup are Laguna, La Union and Batangas," Globe Telecom said.

Globe Telecom also said it wanted interconnection with Digitel for the provinces of Ilocos Sur, Nueva Vizcaya, Bataan, Lucena, Quezon, and Camarines Norte by end of 2010, after the link-up of their local networks in Zambales and Isabela last month.

"[When] the last five Points of Interconnection (POIs) between Globe and Digitel [are] completed, the two firms will have achieved 100% total interconnection in all areas where they operate nationwide," Globe Telecom said.

Meanwhile, Globe Telecom said 90% of common areas with Bayantel have been interconnected, the most recent of which is in the province of Eastern Samar, which took effect last Sept. 6.

The National Telecommunications Commission requires interconnection of public telecommunications carriers under Republic Act No. 7925, or the Public Telecommunications Policy Act of 1995 which broke PLDT's monopoly.

Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessW

NTC expanding telco billing reform

Written by Miguel R. Camus / Business Mirror Reporter

THE National Telecommunications Commission (NTC) plans to expand its newly implemented billing scheme currently covering calls among cell phone users, to include those made to wireless and traditional landlines.

On Sunday, the regulator started a billing regime which effectively requires telecommunication firms to charge local cell phone-to-cell phone calls by six second “pulses” instead of the traditional per-minute charge.

Based on the rates approved by the NTC, the cost of a full minute should not exceed the assumed prevailing rate of P7.50, thereby giving consumers the option to pay for the time actually used at no extra cost.

Beyond this, the NTC is also working on new rules to include wireless and traditional landlines in the per pulse billing scheme.

“Eventually this will follow,” said NTC deputy commissioner Douglas Michael N. Mallillin at the sidelines of a press briefing held Saturday.

He explained that there is a growing popularity for calls between cell phone and landlines, which is not covered by the six-second billing scheme. Mallillin said it makes sense for landlines to follow suit since their usage might drop if consumers feel that they can save more through cell phone-to-cell phone voice calls.

He declined to comment on a specific time frame, however, noting that public hearings in Congress will still have to be held.

This is part of the NTC’s longer term goal to bring down local mobile call billing on a per-second charge, similar to the US, Hong Kong and Singapore.

“We are going on six and eventually [if we can] per second,” said Mallillin.

Already ahead of this, Ayala-led Globe Telecom offered a new per second billing scheme to coincide with the NTC regime.

Globe and Touch Mobile users will be charged 5 centavos per second on Sunday and 10 centavos per second for the rest of the week.

This amounts to P3 per minute on Sunday and P6 per minute from Monday to Saturday.

"We hope to stimulate and drive call usage among heavy texters, especially during this season," said Globe president Ernest L. Cu.

The landmark six-second pulse billing was a result of the collaboration—in the wake of a clamor from consumer groups—between the NTC, the Philippine Senate and major telecommunication firms Sun Cellular, Smart Communications Inc. and Globe Telecom Inc.

The rules, which took effect 12:01 a.m. Sunday, will initially cover intra-network calls (meaning those within the same network such as Globe to Globe, Smart to Smart and Sun to Sun calls). Cross-network calls for the new regime will start on December 16, after the major telcos asked for an extension to prepare their systems.

The major telcos had earlier asked the NTC to move the implementation date to the end of January 2010, citing difficulties arising from increased network traffic in December.

The new regime is also assigned as the default billing mode, meaning subscribers can be charged on the minute-per-pulse basis if they actively enroll in those schemes.

Under the rule, the NTC said that for the 10 six- second pulses in a minute, the first two pulses or 12 seconds shall not exceed the “flagdown rate” of P3; while the remaining eight shall not exceed the P7.50 prevailing rate for the full minute.

For instance, at the flagdown rate of P3 with the succeeding pulses costing P0.56 each, the total bill for a 30-second voice call will only be P4.59 compared to the full-minute charge of P7.50 under the old scheme.

The cost per pulse for succeeding minutes after the first will cost P0.75 each.

“The consuming public will be happier with this regime. The [new] system is already an advantage to the consuming public,” said Senate president Juan Ponce Enrile at the briefing.

Smart Communications and Sun Celluar officials could not be reached for comment yesterday. Globe

Mallillin said the NTC will monitor the new rates over the next two to three months to determine the effects on the telco firms and consumers.

Globe introduce WIMAX broadband

By subictimes.com

SUBIC BAY Freeport: Globe Telecoms announced its newest wireless broadband technology in an effort to bring more and more Filipinos closer together.

To date, Globe has the largest Wimax network in South East Asia, and will be doubling its current footprint in the coming months, allowing Globe to reach more Filipino families.

WIMAX or Worldwide Interoperability for Microwave Access is designed to enable the deployment of wireless broadband access as a cost-efficient alternative to existing services from cable and DSL.

One of the most useful qualities of WIMAX is its improved reach versus other wireless technologies; this means that WIMAX can cover distances greater than those covered by WI-FI, CDMA or even 3G and HSPA. When it commercially launched in Feb. 2009, Globe’s network was also the first 2.5 Ghz WIMAX (802.16 e) broadband network in South East Asia.

WIMAX is a self-install broadband kit, allowing the user to get an internet connection right away.

According to Globe officials the kit is plug and play, which would be easier for customers who buys the kit.

The modems come with interesting designs made by noted top fashion designers James Reyes and Puey Quinones, making the modems a good conversation talk piece.

Self-install Wimax is available in selected Globe stores in Metro Manila, Pampanga, Bulacan, Cavite, Batangas, Laguna, Quezon, Cebu, Bohol. Bacolod, Dumaguete, Iloilo, Zamboanga, Cagayan de Oro, and General Santos.

Enrile thumbs down text metering system

SENATE President Juan Ponce Enrile yesterday opposed the proposal for government to install a metering system that would monitor the text messaging sales of telecommunication companies under a tax-on-text measure emanating from the House of Representatives. Enrile said he agreed with the concern raised by Rep. Rufus Rodriguez that the metering system could violate the Filipino’s right to privacy as the telcos had admitted that such a system could be used to read other people’s text messages. Likewise, even if a metering system would not infringe on the privacy of consumers, Enrile said it would entail unnecessary cost to be incurred by the government. “The metering system may be good in principle but will it be financially feasible considering the high costs of the metering machines?” said Enrile. Purportedly, the system would ensure that telcos would be honest in declaring their profit from text messages for the purpose of paying taxes. Earlier, Enrile had outright turned down the House proposal to tax texting, saying such a measure would surely not pass in the Senate. He explained that tax on text would only be acceptable to him if the burden of paying the same would not be passed on by telcos to consumers. “For example, the current P1 per text rate can be reduced to 80 centavos and government can get a 10 percent tax on that rate. That way, after the tax, telcos still collect 72 centavos per text message,” said Enrile. “It will be fair because it ensures that the tax burden will not be passed on to consumers,” he added. Journal.com.ph

Mas matagal na gamit ng prepaid loads ipatutupad na—NTC

PINAAALALAHAN ng National Telecommunications Commission (NTC) ang mga telecommunication companies (telcos) na ngayong araw na ito (Linggo ) ipapatupad ang panibagong panuntunan para sa pagpapahaba ng validity ng pre-paid cell phone loads.

Ngayong araw na ito, Hulyo 19 matatapos ang 15-araw na publikasyon ng bagong panuntunan ng NTC na ayon kay NTC Commissioner Ruel Canobas ay wala nang extension.

Ayon sa ulat, magiging triple ang haba ng bawat pre-paid loads, halimbawa ang P10 load na dati ay tatagal lamang ng isang araw, sa bagong panuntunan ay magiging tatlong araw na.

Kaugnay nito, sa Hulyo 23 na rin umano ipapatupad ang isa pang panuntunan ng komisyon kung saan ipagbabawal na ang mga spam messages tulad ng pagpapadala ng mga promotions at advertisements sa mga subscribers.

Aminado naman ang NTC na mababa pa rin ang ipapataw na parusa laban sa mga hindi susunod na telcos dahil ayon sa lumang batas P200 lang bawat araw ang multa ng mga kompanya kung mayroon ang mga itong paglabag. Taliba wire monitoring

Telcos get reprieve from new ‘load’ rule

REGULATORS YESTERDAY suspended the implementation of a section in a new memorandum circular extending the validity of prepaid mobile phone airtime credits, saying elecommunication providers need more time in developing software needed to comply with new rules.

Ruel V. Canobas, head of the National Telecommunications Commission (NTC), told reporters Section 4 of the circular was suspended until further notice due to telcos’ lack of preparation.

The provision states that "for each new load that is purchased, the amount of the unused loads earlier purchased that are still within the validity period shall be added to and accumulate to the new load. The new minimum validity or expiry period shall be based on the sum of the new load plus the unused load."

But Mr. Canobas clarified that the circular extending the expiration of mobile phone "loads" will still take effect on July 19.

Ramon R. Isberto, spokesman for Smart Communications, Inc., said programming changes required to comply with the guidelines may take several months.

Globe Telecom, Inc.’s regulatory affairs chief Froilan M. Castelo agreed, explaining: "[Our suppliers] said development of software will take two to four months plus the testing period." Globe Telecom will follow the old setup or the "roll forward rule," wherein the validity of the remaining prepaid credit follows that of new credits loaded if it is longer.

Digital Telecommunication Phils., Inc., echoed Globe Telecom’s position. "We are asking NTC if our current setup could be considered as compliance already since it is almost the same as the proposed guideline," said William S. Pamintuan, vice-president for legal affairs.

The new circular states that loads valued at P10 or lower are valid for three days. For loads worth P10 to P50, the validity period is 15 days; P50-P100, 30 days; P100-P150, 45 days; P150-P250, 60 days; P250-P300, 75 days; and more than P300, 120 days. — Jeremiah F. de Guzman

Globe-PLDT competition over duo service heightens

Competition between Globe Telecom and Philippine Long Distance Telephone Co. over dual services heightened again after the former expanded its Duo service to cover pre-paid subscribers.

Dual services allow unlimited landline calls on wireless handsets. But Globe said its duo-service, which allows unlimited calls to landline numbers within the same area code, is now available to pre-paid subscribers both in Metro Manila and Cebu. The services was previously limited to post-paid subscribers.

“Fast becoming popular to customers in Metro Manila and Cebu, Globe Duo is now available in pre-paid in Metro Manila starting June 5 and this was introduced in Cebu since May 25,” Globe said.

Globe announced the introduction of its Duo service for pre-paid subscribers, a day after PLDT introduced a second SIM that can be inserted in mobile phones or other wireless handsets to make unlimited landline calls from anywhere in the country.

The company said the new product “PLDT Call All” revolutionizes the residential landline by giving Filipinos total freedom to call their loved ones across the country anytime, for an additional monthly fee of only P250.

Globe’s Duo service for post-paid subscribers, announced a month earlier, allows free calls from a mobile phone to any landline number within the same area code, for an additional cost of P399 monthly.

The new Globe Duo service for pre-paid subscribers are available for those who will get a special Duo pre-paid SIM pack worth P45. The cost of the service that allows unlimited mobile and landline calling within Metro Manila and Cebu is P125 for five days and P350 for 14 days.

“We want everyone to experience the best in unlimited calling at an affordable price. So we are introducing the pre-paid variant and we have initially rolled it out in Cebu and now in Metro Manila. Duo is an innovative service and a great offering that we want to make available to more customers,” said Ferdinand dela Cruz, head of Globe’s consumer wireless business. By Roderick T. dela Cruz - Manila Standard Today

RP mobile instant messaging to explode

Mobile instant messaging will explode in Asia with potential subscribers reaching about 45 million over the next years, an executive said.

The Philippines, known to be a big market for short messaging service (SMS), is also seen as one of the emerging and growing markets for mobile instant messaging, an executive from application developer NeuStar said.

Neustar has partnered with Philippine wireless operator Globe Telecoms to deliver mobile instant messaging to handsets via its Unlichat service.

Introduced in September, Unlichat brings Yahoo! instant messaging to handsets and is offered free as trial service for Globe subscribers. Unlichat will become a paid service later this month, according to Glen Murray, senior vice president of global sales of NeuStar.

“In terms of market trend, the Philippines is a chatty marketplace as reflected in the way texting is used in the country. We introduced the service as we see great market potential in mobile instant messaging,” Murray said in a telephone interview with INQUIRER.net.

Using NeuStar's Mobile Messaging Gateway (MMG) and a host of clients for different handsets, Globe subscribers are now able to access Yahoo! Messenger from their handsets wherever they are, said Murray.

Globe subscribers can enjoy most of the functionality available with PC-based instant messaging on their handsets, he said.

The executive said that mobile instant messaging service is targeted at markets with low PC penetration, as the service offers an alternative for users to access chat services via handsets.

For this year, NeuStar plans to set its footprint in the Philippines and enter the Vietnam market next year, the executive said.

Unlichat is a service made for consumers and not business users, said Murray.

Citing market statistics, he said the highest volume of data is generated by users aged 14 to 21 years old who are also heavy users of instant messaging.

Murray cited the service can be used in national events like the upcoming elections.

"Through Unlichat, we will be able to provide our subscribers with a rich messaging experience -- one which allows them to stay connected to the popular Yahoo! Messenger while on-the-go," said Minette Navarrete, head of multimedia business group at Globe, in a statement.

“Mobile instant messaging offers three-way dialogue,” said Murray.

Compared to SMS or text messaging, mobile instant messaging gives users “presence.” This is usually reflected in the status message once users start the instant messaging application on their phones, he said.

Murray said the company is optimistic that the Philippine market will grow and be successful like Europe, which sends half million messages via mobile instant messaging per month.

Key challenges to market penetration of mobile instant messaging services include the availability of handsets that support GPRS (General Packet Radio Service) network, which is required to run the Java application Unlichat, said Murray.

Neustar has offered the Yahoo! Messenger platform in the Philippines because most Filipinos use the service, Murray said.

In Singapore, Hong Kong and Macau in China, the company has offered the MSN Messenger due to its high usage in these markets.

Unlichat is downloadable mobile application offered by Globe through its website. It is also an embedded mobile application for newer handset models.

NeuStar has also partnered with 3 Indonesia in Indonesia, Starhub in Singapore and 3HK in Hong Kong. By Anna Valmero - INQUIRER.net

Telcos: No such thing as free SMS, not even in the US

While willing to discuss text rates, telecommunications companies are balking at a recent announcement that government wants to make text messaging free, saying this implies that telcos were unduly pricing the service when they were not.

"Reports have cited Verizon, a major US mobile carrier, as offering 'free' text messaging. A check with the Verizon website shows that the service being offered is not 'free' text messaging but unlimited text messaging. The unlimited SMS offer is part of their monthly service plans, the lowest priced of which costs US$59.99 or roughly P2,400 a month," Smart Communications Inc. spokesman Ramon Isberto said in a recent statement.

Unlimited text messaging is already available in the Philippines, he added.

"SMS rates in the Philippines are already among the lowest in the world. While the standard rate remains P1 per message, Philippine operators, including Smart, now offer many different text and call packages that have drastically reduced the effective price of SMS from 10 to 20 centavos per message or even lower in the case of unlimited text packages," he said.

Globe Telecom Inc. SVP Atty. Rodolfo Salalima agreed in a separate statement.

"While we do not take it from government to feel their concerns for the mass public, we need to sit down together (to discuss rates).... In Australia the cost per text is P2.4, in Malaysia P1.07, in China P1.55, in Taiwan P4.25, in Europe it ranges from P15 to about P25," he said.

As for lowering text rates, Salalima said the price of one text message was now only about 13 centavos because intense competition has driven telcos to offer promos.

He added that there was a public service aspect to the service, and if telcos were forced to make it free despite the heavy investment required to cope with data traffic and to improve quality of service, then text messaging may not be sustainable.

Digital Telecommunications Phils. Inc., operator of the Sun Cellular mobile brand, likewise said that text messaging was already very cheap in the Philippines.

"The fact that it is being contemplated to make it free or lower prices implies there is an impression that it is expensive. But in fact we are among the lowest especially when we count the promos. Of course, we can discuss this better if we get a formal policy or statement from government," Digitel SVP William Pamintuan told reporters recently.

But the NTC said it has already come up with twin circulars proposing to trim charges not only for text messaging but for voice calls as well. It has also announced that it will hold a public hearing about the proposed rates this week.

NTC wants to slash the access charge (also known as the interconnection charge) for text messaging between different operators (Smart to Globe, Sun to Smart, etc.) to 15 centavos from 35 centavos. This would put the charge at par with the current 15-centavo access charge for two brands using the same network (Smart to Talk n' Text, Globe to TM, Sun to Sun).

NTC believes that cheaper access charges between networks would drive down the price of text messaging from the nominal rate of P1.

As for voice calls, NTC wants access charges for off-network activity (Smart to Globe or Smart to Sun, and vice-versa) to go down to P1.50 from the current P4.

Telcos have declined to comment on the specific rates, saying they have not received a copy of the circulars. By Riza T. Olchondra - Philippine Daily Inquirer

Globe Telecom quietly enters mobile TV market

By Lawrence Casiraya - INQUIRER.net

Globe Telecom is quietly entering the mobile TV market running the service on its 3G (third-generation) network.

Globe is using a mobile TV solution from Massachusetts-based NMS Communications, which provides the same technology to RTL Group, Europe's largest TV and radio broadcaster, and Hong Kong's CSL.

According to a statement from NMS, Globe can use their 3G-enabled handsets to make a video call to a dial-in number to access the service. Subscribers have six channels to choose from including live feeds from CNN and three local stations. The service also offers "made-for-mobile" TV programs, according to NMS.

"We look forward to putting TV in the hands of our subscribers," said Enril Magdato, business development manager for Globe's multimedia business group, in the statement.

Jones Campos, assistant vice president for public relations, confirmed with INQUIRER.net via phone that the service is available to existing Globe 3G subscribers.

Globe, however, is not actively branding it as a "mobile TV" service but as part of the operator's 3G video streaming services.

"We are continuing with the service," Campos said.

According to NMS, the service does not require any software download and can be used in almost any 3G phone without configuration.

Rival operator Smart Communications introduced a mobile TV service last year running on a network independent of its existing cellular infrastructure. Smart, however, is yet to offer it as commercial service pending go-signal from the National Telecommunications Commission.

Globe offers Nokia's wireless e-mail service

By Lawrence Casiraya - INQUIRER.net

Mobile communications firm Globe Telecom has announced support for Nokia's Intellisync, a wireless e-mail service that competes with the Blackberry e-mail service.

Intellisync is initially available as a corporate service. Globe said the service will soon be available for non-corporate users.

Globe will charge each user P150 (in addition to regular subscription charges for postpaid accounts) for every two megabytes of data used. Per kilobyte charges will apply beyond that.

Aside from push e-mail, Intellisync also allows users to enter contacts and calendar data.

According to Globe executives, the service is also intended for mobile users who have web-based email addresses. Intellisync allows less data consumption than checking web-based e-mail such Yahoo or Gmail via a browser.

Telcos buck new access-code fees

TELECOM companies have opposed the plan of the National Telecommunications Commission to impose fees on telephone access and exchange codes, saying the proposed charges are “exorbitant.”

In a draft circular, the NTC said it will charge P10,000 a year for one 3-digit exchange code and one VoIP prefix code; P8,000 a year for one access code, P5,000 a year for one number code.

Globe Telecom Inc., Digital Telecommunications Phils. Inc. and the Philippine Association of Private Telephone Companies said the fees are “exorbitant” and will translate into additional taxes to be borne by customers.

“[The] P8million annually for each new mobile access code, coupled with the proposed fees on other number codes are significant expenses that regretfully, must be reconciled with telco retail schemes for the sake of business buoyancy,” Froilan M. Castelo, Globe’s head for regulatory affairs, said.

Castelo said that that the new fees may impede the continuing drive for affordable communication, adding that as a substantial contributor to the government revenues, Globe wants NTC to reconsider or stop altogether the plan to impose administrative fees on number codes.

The Globe executive pointed out that numbers should not be the subject of administrative fees as they are not a scarce public resource.

“We disagree with the proposed principle that numbers are like spectrum, and as such are scarce public resources that need to be effectively administered for which user’s fees will be charged,” Castelo said.

Castelo said the 09XX series alone can hold about 8 million numbers. “There are more numbers to go around than the Philippines’ mobile subscriber market can be expected to grow for several generations - potentially forever when traditional numbering finally evolves into NGN [next generation network] or IP-based locators for that matter,” he said.

The NTC imposes fees on the names and numbers to promote the efficient use of such limited resource.

The regulator said the fees will apply to all public telecommunications entities and value added service providers with assigned names and numbers.

These include the three-digit exchange codes used to identify where a subscriber is connected, prefix code for voice over Internet protocol (VoIP), access code, number codes in the 1-900 and 1-800. By Darwin G. Amojelar, Manila Times Reporter

NTC: Interconnection is key to lowering rates

In an effort to bring down international call and data rates, the National Telecommunications Commission (NTC) is keen on ordering interconnection of backhaul networks to international cable landing stations in the country.

“Currently, only the company that has put up a cable landing station can extend this connectivity to the mainstream network, say in Manila, and from there other telcos can interconnect for last-mile connections,” NTC Commissioner Jorge Sarmiento said in an interview. “There could be potential savings for the other telcos if they can hook up to the cable landing station itself.”

NTC common carrier division chief Edgardo Cabarrios explained that it was like “coming from abroad and having to land first in Manila and getting a connecting flight to Cebu.”

“There could be savings in flying straight to Cebu,” Cabarrios said. “That is the analogy of what we would like to do.”

Cabarrios added that backhaul interconnection would give end-users an option on which telco service to use since they would all be connected at competitive rates.

The three existing backhaul facilities were individually put up by the Philippine Long Distance Telephone Co. (PLDT), Globe Telecom Inc. and Digital Telecommunications Philippines (Digitel).

Two more facilities are in the pipeline.

PLDT is set to spend more than $50 million as the Philippine landing party in the Asia-America Gateway or AAG, a cable project which will provide Southeast Asian countries their first direct, high capacity cable connectivity to the US mainland. It is also upgrading its existing APCN2 (Asia Pacific Cable Network 2) system.

Globe Telecom is spending $40 million just for the cable landing station of the TGN Pacific network which will link the country to Japan, Guam and the United States.

Digitel, which is part of the East Asia Crossing (EAC) submarine cable system, said through spokesperson William Pamintuan that it first wanted to get industry feedback at a hearing this Wednesday on the matter.

Digitel has been asking the NTC to make PLDT bare backhaul charges to non-capacity owners of its existing cable landing station.

PLDT and Globe could not be reached for comment.
By Riza T. Olchondra - Philippine Daily Inquirer

Telco growth seen to slow down on peso’s strength

Telco growth seen to slow down on peso’s strength

By Darwin G. Amojelar, Manila Times Reporter

THE Philippine telecom industry is expected to slow down this year owing to weak consumer spending because of the rapid appreciation of the peso, the country’s second largest mobile phone service provider said.

Gerry Ablaza, Globe Telecom Inc. president and chief executive officer, told reporters that the company is cautious given the local currency’s rise vis-à-vis the dollar.

“Hopefully, not a slowdown but maybe slower growth. Maybe revenue growth for the entire market this year will be in the 8 percent to 10 percent vicinity, whereas it was over 10 percent last year,” Ablaza said.

Ablaza said the strong peso could continue to hold back the company’s international long distance revenue growth.

The Globe executive said the industry will continue to grow but the pace will depend on develop-ments in the broader economy such as the peso and the rise in crude oil prices that could weigh on consumer spending.

Ferdinand dela Cruz, Globe Telecom head for Consumer Business, said the overseas Filipino workers’ purchasing power is shrinking because of the peso appreciation.

“There will be a softness in consumer spending [because of the stronger peso],” dela Cruz said.

A Nielsen Media Research report said that majority of OFW households spend between P101 and P499 a month to communicate with their loved ones. Another 13.7 percent spend between P500 and P999, while less than 10 percent spend more. The great majority at 97.4 percent uses prepaid cards.

Despite the expected slowdown, the subscribers identification module (SIM) penetration rate is expected to reach 70 percent this year from 60 percent last year, Ablaza said.

Innove gets licence to offer services in Subic & Olongapo

Innove gets licence to offer services in Subic Freeport and Olongapo City

INNOVE Communications Inc. has obtained a permanent license from the National Telecommunications Commission to operate both the international domestic leased line services and local telephone service with public payphone facilities in the Subic Bay Freeport Zone and in Olongapo City.

The NTC said it approved Innove’s application because of the high demand for data services and phenomenal growth of Internet-related services and e-commerce market.

The regulator handed down its decision on December 10, saying: “In the interest of public service, and because Innove is legally, financially and technically qualified, the Commission grants Innove a certificate of public convenience and necessity to provide international domestic leased line services and to establish, operate and maintain local telephone services with public payphone facilities and public calling stations within the territorial jurisdiction of the Subic Bay Metropolitan Authority (SBMA), for a period coterminous with the life of its existing franchise.”

Innove, the wireline unit of Globe Telecom, was first issued a provisional authority by the SBMA on February 17, 2006, valid for 18 months or up to August 16, 2007.

Earlier, Subic Telecommuni-cations Company Inc. (SubicTel), a subsidiary of Philippine Long Distance Telephone Co., filed a case before the Regional Trial Court of Olongapo City to restrain the Globe’s unit from providing domestic and international tele-communications services in the Subic Bay Freeport Zone.

SubicTel claimed it has the option to renew its 10-year exclusivity privilege to provide state-of-the-art telecom facilities in the area but since the period has lapsed, the SBMA began entertaining other applicants.

However, the Olongapo trial court denied the case filed by the subsidiary of PLDT to stop Innove from operating in the area.

SubicTel has been operating in Subic initially as a joint venture with PLDT, SBMA and the US-based telecom firm AT&T. Later, SBMA and AT&T sold their equity to PLDT.
--Darwin G. Amojelar - Manila Times

Globe, Smart say they can do ZTE’s job

By Efren L. Danao, Manila Times Senior Reporter

Telecommunications companies told the Senate blue-ribbon committee on Tuesday that they can provide the last-mile broadband connectivity of the country and denied claims of the government that none of them was interested in the project.

Executives of Smart and Globe said at the resumption of hearing on the aborted $330-million project that the government need not enter into a contract with a Chinese firm for the broadband project because they already cover almost the entire country. They refuted the earlier statements of Assistant Secretary Lorenzo Formoso 3rd of the Department of Transportation and Communications that the government was forced to pursue the broadband project with foreign partners because no local telecommunications company was interested in it.

During the hearing, the blue ribbon headed by Sen. Alan Peter Cayetano, asked former socioeconomic planning Secretary Romulo Neri to show cause why he should not be cited in contempt for not attending the hearing. It also decided to refer to the Senate Committee on Public Order and Illegal Drugs the alleged assassination plot against Jose “Joey” de Venecia 3rd after lawyer Raul Lambino corroborated it. De Venecia, son of House Speaker Jose de Venecia Jr., blew the whistle on alleged brokers for the broadband deal—among them President Arroyo’s husband, Jose Miguel Arroyo, and resigned Commission on Elections Chairman Benjamin Abalos Sr.

Rodolfo Salalima, vice-president for operations of Globe, and Mon Isberto of Smart said their respective companies were not approached in any way about the broadband project. If they were invited to bid, they would have done so and would have been capable of providing the service, they added.

Isberto said Smart already has cell sites in all but a dozen of the 1,600 towns in the country, that it is offering wireless broad­band services in 43 percent of the country, and that it has wired broadband services in 116 cities and major municipalities outside of Metro Manila.

Salalima said they have 7,000 cell sites covering about 80 percent of the country.

Globe and Smart said they were asked to participate only after President Arroyo had already canceled the contract with ZTE Corp., the Chinese firm that won the broadband project.

Cayetano said he found the testimony of the telecommunications companies “very revealing.”

“Imagine, the government will be spending $329 million without even asking local telcos if they can do it,” he said.

Cayetano said the government has been arguing that the project is needed but it has never maintained that it could save on the project cost because it is available locally.

He formed a technical group that included the telecommunications companies to go over the technical aspects of the project and determine if there was overpricing. The work of the group is facilitated by the rejection of ZTE’s request that its documents on pricing be considered proprietary.

Sen. Manuel Roxas, who moved for the opening of the documents, said committee members may now share the documents with any technical people they might want to consult so that they could make an informed decision.

Meanwhile, the Senate inched closer to an expected confrontation with Malacañang after the blue ribbon required Neri to show cause why he should not be cited in contempt for failing to appear at the hearing.

Executive Secretary Eduardo Ermita wrote a letter to Cayetano asking the committee to dispense with the testimony of Neri because he had already testified and “exhaustively” discussed the broad­band project on September 26. Ermita invoked executive privilege in explaining why Neri could not testify on his conversations with Mrs. Arroyo regarding the project.

Cayetano also noted that Neri had already made disclosures on his conversations with the President in media interviews so Ermita’s explanation does not wash. He directed the committee secretary to draft a letter asking Neri to show cause why he should not be cited in contempt for not appearing at the hearing.

“If the committee won’t accept his explanation, then the next step is to have a vote on holding him in contempt,” the blue-ribbon chairman said.

Sen. Juan Ponce Enrile asked for an immediate vote since that is where the committee appeared to be heading, but Sen. Panfilo Lacson and Cayetano said they have to accord Neri due process.

The blue ribbon also decided that the Senate should pursue the investigation of the alleged threat on the life of the de Venecias. Senate Minority Leader Aquilino Pimentel Jr. and Sen. Rodolfo Biazon said the alleged plot could be an attempt to silence a vital witness in a Senate investigation.

Lawyer Raul Lambino, a legal adviser of the Speaker, corroborated the earlier testimony of Joey de Venecia that retired Gen. Jaime de los Santos had warned of an assassination plot against him and his father, allegedly hatched by Transportation Secretary Leandro Men­doza, Land Transportation Office Director Reynaldo Berroya and prisons Director Ricardo Dapat.

Cayetano said Berroya and Dapat previously confirmed their attendance but called Tuesday morning that they were sick. The young de Venecia also begged off from the hearing, saying he had a prior commitment that could not be rescheduled and that the secretariat might have made a mistake in saying that businessman Enrique Razon confirmed his attendance.

“We have another hearing tomorrow involving another Razon, Gen. Avelino Razon, and our staff might have mistaken him for Enrique Razon,” Cayetano explained.

Telcos say 98% of RP population covered

By Erwin Oliva - INQUIRER.net

The National Telecommunications Commission (NTC) said there are now over 13,000 base stations nationwide operated by three mobile telecommunications giants.

This was based on a report the agency is preparing for the joint Senate hearing on the controversial $329 million national broadband network project of the Department of Transportation and Communications (DoTC).

"We're preparing a list of the total [cellular network] base stations. So far, we have a total of about 13,000 nationwide," said NTC Deputy Commissioner Jorge Sarmiento.

During last week's hearing, Senator Rodolfo Biazon quizzed the DoTC about the number of base stations now installed by local mobile communications providers.

The agency was not able to provide figures and has referred the matter to the NTC.

In a separate interview, Ramon Isberto, spokesperson of Smart and PLDT, said that there are over 6,000 Smart cellular base stations covering about 98 percent of the population. These base stations, however, cover about 75 percent of the geographical areas in the country.

Globe Telecom spokesperson Jones Campos, on the other hand, said that the rival mobile provider has over 5,000 base stations also covering around 98 percent of the population.

The rest of the 13,000 base stations are operated by Sun Cellular, said NTC Deputy Commissioner Sarmiento.

Yahoo! puts SMS in email

By Alexander Villafania - INQUIRER.net

The Philippines will be one of the first countries to have an integrated short messaging service (SMS) from Yahoo! Mail email service as part of the expansion of its worldwide communications services.

The SMS system upgrade of Yahoo! Mail would allow users to send text messages to mobile phones initially to 25 countries, including the Philippines.

The Philippines was chosen to be among the first to use the service due to the country’s high text message traffic. Yahoo! cites National Telecommunications Commission figures stating that there are an estimated 500 million text messages being sent every day this year, compared to just 250 million in 2005.

There are at least 45 million mobile subscribers in the Philippines, according to latest estimates from the NTC.

The service is expected to be activated in two weeks.

Yahoo! partnered with wireless service providers Globe Telecom and Smart Communications for the Yahoo! Mail SMS upgrade. Users of the local Yahoo! Mail (ph.yahoo.com) can send text messages to Globe and Smart subscribers for free.

However, corresponding amounts of two pesos for Smart and 2.50 pesos for Globe are charged to replies to Yahoo! Mail SMS.

Mobile phone users have to first register their phones by typing their Yahoo! Mail username and password and typing the corresponding short codes for each of the telecommunications providers; 62580 for Smart and 2258 for Globe.

Incidentally, Yahoo!’s instant messaging client application already has text messaging features available. The company has yet to verify how the Yahoo! Mail SMS would work alongside the Yahoo! Messenger SMS service.

Yahoo! is still testing Yahoo! Mail Beta, an upgrade to its Yahoo! Mail Classic interface.

Yahoo! also faces competition from local online services company Chikka.com, which is also developing upgrades for its integrated messaging service that allows users to send and receive text messages through the Chikka client.

Globe telemarketing campaign unethical--NTC

By Erwin Oliva - INQUIRER.net

MANILA, Philippines -- An official of the National Telecommunications Communication said it was unethical for telemarketers representing Globe Telecom to call up subscribers of rival operator Smart Communications and offer them to switch to their service.

“The practice is not ethical,” said NTC Deputy Commissioner Jorge Sarmiento in a text message.

He said the NTC will be looking into the matter.

Meanwhile, Globe spokesperson Jones Campos said he was not aware how telemarketers got hold of numbers of Smart subscribers, but admitted this might be a “job-out or outsourced” service.

Asked if there was any company policy against this practice, the Globe spokesperson said he was not aware of any.

“I don't know how they got hold of your numbers and the database of Smart,” he said.

Pressed if this practice was unethical and possibly an invasion of privacy, the Globe spokesperson said “he does not know” but indicated that he will also look into the matter.

The telemarketers would call Smart subscribers randomly, introducing themselves as Globe agents. They then ask for the subscriber’s e-mail or fax number to which they could send more information about the Globe promo for the offer to switch.

Smart’s public affairs office said it was aware of this practice by its rival.

“This has happened several times in the past. We got them from reports,” Ramon Isberto, public affairs head, said in a phone interview.

Isberto said if Globe Telecom telemarketers got hold of its database, it qualifies as “stealing.”

Isberto said Smart will also check on this practice and study legal actions it might take.

Globe-Yahoo partnership targets over 40 M RP users

Globe Telecom, in partnership with Yahoo, aims to reach over 40 million Internet users in the Philippines via the Yahoo!Go and Yahoo!oneSearch services — Internet applications optimized for the small screens of mobile phones.


Yahoo, a leading global Internet brand with 500 million users worldwide, already reaches 85 percent of all Internet users in the country, according to David Ko, Vice President and General Manager, Connected Life Asia, Yahoo.

"Most of these Internet users are mobile phone users as well," he pointed out. "We want to bring Yahoo!Go to all 20 million Filipino mobile phone users."

Ultimately, "Our goal is to have over 40 million Filipino users gain access to yahoo via their Personal Computers or mobile phones."

"Yahoo is our partner, not just in business, but in nation building as well," added Gerardo C. Ablaza, Jr., Globe President and CEO.

"We both support GILAS - Gearing up Internet Literacy and Access for Students. Together with other GILAS partners, we are hooking up all of the Philippines’ over 5,000 secondary schools to the internet."

Yahoo! Go 2.0 is a suite of Yahoo applications including Yahoo! Mail, Calendar and Address book that customizes content from the Internet and reinvents mobile search.

Yahoo! oneSearch gives instant answers in a new format on the mobile phone. Search results are easy to read and expand consumer access to News, Images, Finance, Weather, Flickr, Web and mobile Web results with easy navigation to other web sites.

Under the new partnership, Globe will distribute Yahoo!oneSearch and Yahoo! Go 2.0 to makes it easier for people to conduct Internet searches in their mobile devices.

In addition, Globe is adding its own content in the yahoo search engines. Hence, subscribers can use oneSearch to look for listings of the latest ring tones and other downloadable content from Globe and its partners.

Furthermore, Globe is offering a fifty percent discount on browsing charges to make the Yahoo mobile experience affordable to subscribers.

Yahoo! Go 2.0 is now available for download free of charge from the myGlobe WAP site.

First launched in the United States in January 2007, Yahoo! oneSearch is currently available in 14 countries around the world — Canada, France, Germany, Indonesia, India, Italy, Malaysia, Philippines, Singapore, Spain, Thailand, United Kingdom, United States and Vietnam.

The service will soon be available in Korea and Taiwan as well.

By EMMIE V. ABADILLA - Manila Bulletin