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.

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

High Court rules on telcos firm

The Supreme Court (SC) has declared final its ruling that Smart Communications, Inc. is not exempt form the payment of franchise tax to local governments.

In a resolution written by Justice Antonio Eduardo B. Nachura, the SC denied Smart’s motion to reconsider last year’s decision that dismissed its petition challenging the franchise tax of 75 percent of one per cent gross annual receipts imposed by the local government of Davao City.

Last year, the SC ruled that Smart unlike Globe Telecom, Inc., is not exempt from franchise tax that may be imposed by municipal, city, or provincial governments.

The decision affirmed the July 19, 2002 order of the Davao City regional trial court (RTC) which dismissed the petition filed by Smart with a ruling that “the ambiguity of the ‘in lieu of all taxes’ provision in RA No. 7295 (Smart’s legislative franchise) on whether it covers both national and local taxes must be resolved against the taxpayer.”

From an unfavorable RTC ruling, Smart elevated the issue before the SC.

Section 9 of RA 7295 provides that “…the grantee, its successors or assigns shall pay a franchise tax equivalent to three per cent of all gross receipts of the business… and the said percentage shall be in lieu of all taxes on this franchise or earnings thereof.”

Smart claimed that the “in lieu of all taxes” clause in Section 9 of its franchise exempts it from all taxes, both local and national, except the national franchise tax (now value added tax), income tax, and real property tax.

By. Rey G. Panaligan – Manila Bulletin

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

Smart begins nationwide WiMAX roll-out

Smart Communications Inc. (SMART) has taken its first steps to massively deploy WiMAX technology across the country.

The country’s leading wireless services provider has undertaken tests of the powerful wireless broadband platform with equipment manufacturer Motorola, paving the way for rapid rollout of the new network. Motorola is the principal contractor for Clearwire Communications, the leading provider of mobile WiMAX service worldwide.

WiMAX or Worldwide Interoperability for Microwave Access is a telecommunications technology that provides wireless broadband access to a wide area spanning several kilometers.

Smart’s WiMAX deployment, through its subsidiary Smart Broadband, Inc (SBI), is part of the company’s efforts to replicate the success it achieved in cellular phones in the field of wireless broadband Internet.

“It has been our vision to provide Internet for all Filipinos – no matter where they are or what device they’re using,” said Orlando Vea, Smart's chief wireless advisor.

He added that Smart is set to build one of the most extensive WiMAX networks in South East Asia for fixed wireless broadband applications.

Smart’s WiMAX network will complement its high speed packet access (HSPA) network, which is based on the most advanced mobile broadband technology. Smart is one of the only 20 mobile carriers in the world and the only in the region to have deployed HSPA running on 850 MHz.

“With our HSPA, WiMAX, and Canopy networks blanketing the whole country, Smart will have a unique and by far superior combination of wireless broadband networks,” Vea said.

Smart’s WiMAX network will be a key component of its Internet For All initiative including its schools connectivity program. Under the Smart Schools program, the company has connected 250 public elementary and high schools to date.

In partnership with the Commission on Information and Communications Technology (CICT), Smart has connected an initial batch of 50 public high schools and is now working with the Department of Education in a program to provide connectivity to about 6,600 public high schools across the country. WiMAX uses the 802.16 standard developed by the WiMAX

Forum. It provides a maximum bandwidth speed of up to 70 megabits per second, which is apt for data hungry applications like streaming video.

Since WiMAX covers a wider distance and serves more users at any given time while allowing high speed data access, it can reach to ‘blackout areas’ that currently have no broadband Internet access. It can enable Internet penetration even to the most remote barrios and barangays.

“We will make sure no Filipino family is left behind in terms of Internet access. We have done it with the mobile phone, we will do it again with the Internet,” Vea said.

To date, the company has about 8,700 cell sites across the country, housing various network equipment, including antennae for GSM, HSPA and Canopy. Very soon, these same towers will play host to Smart’s extensive WiMAX network.

For the trial, Smart and Motorola installed the latter’s WAP 450 WiMAX Access Points equipment to a number of cell site towers across the country. The WAP 450 utilizes tower top power amplifiers that can be housed in a small cabinet, allowing for a compact cell site configuration.

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

Smart tests RP waters for all-in-one messaging service

Wireless service provider Smart Communications has started beta testing an all-in-one messaging service that intends to attract Internet-savvy users.

The new messaging service, Uzzap, will use Internet Protocol (IP) passing through mobile networks to let users zap instant or e-mail messages to other users.

Users can also join chat rooms, set up chat conferences and use so-called "extended messaging" to connect with other Uzzap users, Smart said.

"This will work well with those used to social networking," said Ramon Isberto, Smart head of public affairs, in an interview, as he explained that the service will require users to download a software application onto their handsets.

Uzzap requires handsets that run the Symbian operating system and those that support Java mobile applications, the company said.

A PC-based software can also be downloaded by users to their computers to allow them to send instant messages to users on their mobile handsets.

"This is a convergence of the mobile and the web world," said Isberto, adding that the company has been testing this service internally for a year.

Acknowledging the growing number of people sending e-mail and instant messages through their mobile handsets, it was logical for Smart to develop its own service, the executive said.

The beta phase will run from July 6 to 20, Smart said.

"SMART Buddy Uzzap is another service that will further enrich the mobile Internet experience of our subscribers. Through Uzzap, Smart has taken another step toward taking web-based applications such as instant messaging, file sharing, and social networking and making these accessible and easy to use on their mobile handsets," added Danilo Mojica, wireless consumer division head of Smart, in a statement.

Isberto said users can still use the service for free or until the beta phase ends.

Eventually, the company will be charging a flat-rate, the executive said. He declined to disclose the rates until the commercial launch. By Erwin Oliva - 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

Smart taps schools for disaster monitoring via mobile

By Lawrence Casiraya - INQUIRER.net
CEBU CITY -- Mobile operator Smart Communications is tapping universities to become part of a nationwide monitoring network for natural disasters such as earthquakes and typhoons.

In particular, Smart wants to tap partner schools under the Smart Wireless Engineering Education Program (SWEEP) initiative, which trains teachers from these schools on mobile and networking technologies.

“We want to involve these schools into a nationwide network of disaster monitoring systems,” said Mar Tamayo, head of Smart’s network services division, during the company's annual SWEEP competition held here.

Tamayo was referring to the development of such systems by the Philippine Institute of Volcanology and Seismology (PhiVolcs), which is under the Department of Science and Technology.

Engineering faculty from the SWEEP partner schools met with PhiVolcs officials last October and presented proposals for low-cost “intensity meters” for monitoring earthquakes using GPS (global positioning system) technology.

Each school also gave updates on their respective disaster monitoring initiatives while agreeing to use these earthquake intensity meters in their respective schools.

Using wireless technology for disaster preparedness is the theme of this year’s SWEEP competition among schools. The winning school receives P500,000.

Smart's SWEEP competition is now on its fourth year. Mon Isberto, Smart’s public affairs spokesperson, said succeeding contests will focus more on wireless broadband areas and go beyond simpler GSM applications especially SMS or texting.

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.

Phones for seamen

By Noel G. Tulabut - SunStar

Smart Communications is making good its promise to serve our countrymen abroad. This time, it has shifted to high gears for the benefit of Filipino merchant marines or seamen.

Going an extra mile just to do that, it has acquired 30 percent equity interest in Blue Ocean Wireless (”BOW”), a Dublin-based company delivering GSM communication capability for the merchant maritime sector, for US$15.9 million.

Napoleon L Nazareno, President and CEO of SMART, said 1.2 million seafarers -- of whom 40 percent are Filipinos -- currently populate the global merchant maritime fleet.

“Their communications needs are currently served by satellite-based, bridge-mounted or shared fixed phones that tend to lack privacy. Moreover, these types of phones allow only a limited number of incoming calls and do not provide for SMS or texting. The innovative BOW service will enable seafarers to bring their mobile phones onboard their vessels and use them just as if they were at home or roaming in other countries,” he said

For his part, Robert Johnson, chief executive officer of BOW, said that they are “delighted to announce this investment by SMART and a partnership with them to bring our unique product offering to market. SMART is a natural choice for us given that a significant portion of the world’s seafarers are Filipinos.”

With this commendable undertaking, our hardworking seamen and their families back home are assured of a continuous communication with privacy. One that they have never enjoyed before.

This leading wireless services provider with over 27 million subscribers on its GSM network is always a step ahead of its competitors. Only recently, it had launched another first in the telecom industry, Smart myTV. This enables cellphone users to watch their favorite shows on their handheld phones. With that trailblazing feat, do we see SMART, a wholly-owned subsidiary of the PLDT, getting the exclusive right soon to sell the iPhone in the Philippines?

Cool. I’m impressed.

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.

E-load phenomenon gets new boost with top-up machines

By MELVIN G. CALIMAG - Manila Bulletin

Since its introduction, Smart’s innovative e-load pre-paid system has spun off a virtual cottage industry that feeds on the entrepreneurial spirit of the Filipinos, especially in the countryside.


With this realization, the PLDT-owned mobile operator is bent on propagating what is arguably a money-making scheme for both the company and the small entrepreneurs who are using it. Thus, it is investing around R22.5 million to buy electronic equipment to make it easier for retailers to exploit the "tingi" mentality of the Filipinos.

Dubbed as "Load Connect," the project is a tie-up with IBM Philippines who provided the ATM-like machines that it manufactured together with Japanese firm Hitachi.

Smart said the new offering is aimed at Smart e-load retailers and dealers whose volume requirements for the electronic prepaid reloading business dictate that they top up their load wallets at the nearest Smart wireless center. With the new machines, they will no longer have to line up at the cashier.

Apart from real-time reloading of airtime, Load Connect also allow users to load credits to their Smart Money card.

Subscribers can use Load Connect to purchase airtime in R30, R60, R300, R500 and R1,000 denominations as well as reload their Smart Money accounts.

The new machines are initially available in 15 Smart wireless centers nationwide: Smart Tower along Ayala Avenue, Makati City; SM Manila; Robinsons Place Ermita; SM North EDSA; SM Fairview; SM Bicutan; SM Southmall in Las Piñas; Araneta Square Caloocan; Sta. Lucia East in Cainta, Rizal; Festival Mall, SM Dasmariñas, Nepo Mall Dagupan; Elizabeth Mall in Cebu City, and Limketkai Mall in Cagayan de Oro City.

According to Smart, Load Connect is the first service in Asia that allows mobile users to load airtime and money via a machine that accepts and recycles multiple bills.

"The investment that we’re making with Load Connect and other Smart Connect initiatives shows how serious we are about enhancing the subscriber experience at our wireless centers," said Joy Sanchez, Smart customer care head, during the launch at Smart’s Wireless Center in Ayala Avenue in Makati City.

The number of transactions on airtime reloading ranges from 220,000 to 670,000 a month, depending on the wireless center. The bulk of transactions is made by Smart Load retailers and agents, which number about 800,000 nationwide, Sanchez said.

The self-service reloading machine is one of several initiatives under Smart Connect, which include SIM Connect, Web Connect, SagotAgad, and Zone Connect.

Smart, 360media launch RP's 1st commercial mobile TV service

By Erwin Oliva
INQUIRER.net

TAGUIG CITY, Philippines -- The first commercial mobile TV service in the Philippines was launched Tuesday.

Mobile network Smart Communications and broadcast firm 360media Corp., a subsidiary of MediaQuest Holdings, are behind this new service. Using the digital video broadcasting-handheld (DVB-H)standard, subscribers with mobile TV-capable handsets can start viewing several channels covering news, music, sports and documentaries for a monthly fee of P488.

DVB-H is a technical standard for broadcasting video content to handheld devices, which is backed by the European Union. It is just one of many standards now available for the handheld.

Smart said the service is available to both paid and pre-paid subscribers.

The service, dubbed myTV, will be availabe in "Mega Manila," Cebu, Davao, Tagaytay, Batangas and Baguio City. It will be rolled out to Cagayan de Oro and Boracay soon.

The mobile TV service will be free to subscribers until August 31.

"This is literally unchaining television and letting it go. TV will be literally in the palm of your hand," said Napoleon Nazareno, Smart president and chief executive officer.

Nazareno said that myTV will be different from its streaming video service on its 3G network, adding that this service is more like "TV on the fly."

Orlando Vea, president and chief executive officer of 360media Corp., stressed that both companies are bringing in another disruptive technology in the country that will "revolutionize" TV viewing in the country.

Vea said that 360Media alone will be investing $50 million in three years.

Nazareno added that Smart has also invested in myTV, but he did not disclose the amount put in for the service.

Vea said studies show that people view TV four hours a day on the average. He believes that mobile TV will change the viewing habits of consumers.

Consumer studies and service trials were conducted early this year. Smart said that there was "strong acceptance for mobile TV," the company said.

Raymund Miranda, 360Media managing director, said that its own local studies showed people viewing mobile TV as long as they view regular TV, implying that mobile TV could supplant demand for cable television especially in areas not reached by local providers.

Vea however stressed that mobile TV won't replace television but will "expand" the market for television.

Danilo Mojica, head of Smart's Wireless Consumer Division, said that consumer studies indicated that people are willing to view television on their handheld devices while waiting or when idle.

Asked if myTV would soon offer "snack TV," or bite size content instead of full programs, Miranda said the first phase of the service will roll out a "base content" but more premium services will be available.

"We will start with 10 channels but we're quickly moving into that direction," added Mojica.

Miranda said 360media will co-produce or produce its content for myTV.

Among the TV channels that will be made available are CNN, MTV Philippines, Cartoon Network, National Geographic, Pinoy Box Office, the History Channel, Solar Sports, Basketball TV, ETC, Jack TV, and soon, PBA games.

Smart said myTV is not transmitted through a cellular network via video streaming nor is it a video download service now available on 3G cellular networks.

360media is formerly known as GV Broadcasting System Inc.

The duel over broadband

The Globe versus Smart contest has moved up from the cellular phone business to ROUND 2 OF THE TELCOS WAR

THE telecommunications war—fought by the country’s two largest telcos, Smart and Globe (and their giant mother companies)—has entered the Second Round.

Now they are dueling over the Broadband Internet Access market. Broadband Internet service, both companies believe as do the best minds of the industry, is the telecoms industry’s future source of mega profits.

Smart Communications Inc., a subsidiary of telecoms giant Philippine Long Distance Co. (PLDT), owned by Manuel V. Pangilinan, and Globe Telecom Inc., owned by Jaime Zobel de Ayala and his corporations, are still heavily engaged in making their mobile-phone services continue to rake in billions but they are adjusting their focus and looking at broadband infrastructures, providing broad-band Internet access to their present customers and drawing outsiders into the loop.

Just as in the mobile-phone business, Smart and Globe are competing in luring new customers into the world of Broadband Internet Access and provoking dial-up Internet subscribers they already have to upgrade.

Experts and industry leaders say the growing numbers of overseas Filipino workers (OFWs), who mainly know broadband Internet in their locations abroad, as well as Filipinos working here at home in call centers and various other business process outsourcing (BPOs) establishments, are the market for broadband. They—and their families—plus the fact that Internet penetration in this country of more than 85 million is rather low, are the main factors that persuaded Globe and Smart to invest a good part of their capital and their time and talent in Broadband Internet.

Industry sources also see that, with profits from the cellular-phone business starting to taper off, the impulse to go into Broadband Internet has become more urgent.

Napoleon Nazareno, PLDT and Smart president and CEO, said broadband is the future of the telecommunication industry.

He projects that in the next three to five years, Broadband Internet Access will become a major basic service to vast numbers of the country’s population.

Gerardo Ablaza, Globe president and CEO, says his company is excited by the growth opportunities in the broadband sector and will accelerate the roll-out of the Globe network to tap into the huge demand for affordable Internet access.

“I would like Globe to have a significant presence in the broadband market starting in 2007,” Ablaza said, and that is why his company is giving Smart/PLDT a good fight.

Promo sale

To outdo each other and serve the huge Philippine demand for cheaper Internet services, Smart and Globe are offering great promotional discounts.

The promotions are attractive enough to attract even members of the so-called mass market or the hoi polloi. These after all are also loyal users of mobile phones even if they are only “tingi” (or mini-retail size) customers of loads.

One of the early Smart promos is “Smart Bro.”

For one, Smart introduced the “Smart Bro” a revolutionary high-speed broadband Internet service as low as P999 a month with a speed of up to 384 kbps or seven times faster than dial-up.

According to Smart, the service works by installing a Smart Bro antenna at subscriber’s home which is directed to the nearest Smart cell site to give faster connection signal.

The company started its wireless broadband service in June 2005 called Smart WiFi, a wireless broadband connectivity to homes and small businesses without the need of a landline phone.

However, after months of operations, the company started being bombarded with complaints because of its low speed.

Later on, Smart in April 2006, relaunched the service and renamed as Smart Bro.

Ramon Isberto, PLDT and Smart spokesman, said the aggressive promo of the company is designed to persuade users to avail themselves of the new products while addressing the problem of the limited ownership of personal computers (PC) in the country.

The PLDT moved to increase the use of broadband services among small and medium scale businesses but running a promotional campaign that bundled free personal computers along with DSL (digital subscriber line) packages.

This program immediately addressed one of the key obstacles to the massive growth of Internet usage—the high cost of computers.

Also, the PLDT increased Internet usage by providing myDSL services to thousands of Internet cafés all over the country. About half of the 10 million regular Internet users in the country connect to the Web via Internet cafés.

“Our target market is the traditional consumer like individual houses and Internet cafés that are able to serve a large number of consumers,” Isberto. His company is also targeting the corporate and the small and medium enterprises (SMEs) markets.

“Broadband service is now cheaper compared to before,” he added.

Smart-PLDT’s Nazareno also said that the market potential for broadband is expanding rapidly. He said that the PC penetration grew by 58 percent to about 1.4 million year on year or 8 percent of total households in 2006.

Internet users also surged to 9 million from 3.4 million, half of whom access the Internet through Internet cafés.

“The current broadband market in the country more than doubled to about 340,000 subscribers while narrowband Internet usage is increasing in the lower income households,” he added. These narrowband Internet users will eventually become broadband customers, of course.

Globe introduced the same service called Globelines Broadband Budget Bundles, a landline service with unlimited access, with speed of up to 384 kbps for only P995 a month.

Globe Broadband subscribers may also activate their VoIP (Voice over Internet Protocol) account and use Globelines Broadband VoIP softphone service to call overseas for a special rate of $0.05 or about P2.50 a minute.

Innove also introduced a speed upgrade for its broadband consumers, increasing speeds from 384 kbps to 512 kbps, at no extra charge to customers.

“Our direction for 2007 is really to deliver affordable Internet business to the people particularly the mass market,” Jones Campos, Globe spokesperson said.

One of the company’s strategy, Campos said is to offer an affordable price. Price in relatively poor Philippines always never fail to attract new subscribers.

“The demand for broadband Internet is robust and encouraging. We feel in a matter of time we can be able to serve the demand,” Campos said noting that the company’s target is the population of professionals, students, OFWs and both small and large companies.

Next growth frontier

Since the mobile-phone business has started showing indications of a slowdown, telecommunication companies now more actively seek other opportunities to grow.

The 3G (third generation) technology service offered by telecom companies failed to match the popularity of 2G when introduced in early 2000. Until now the subscriber growth has not been growing despite the companies’ promo and advertising for 3G. This is because even if there are enough customers who afford the more advanced cell phones to use 3G products—like streaming video, video calling, conference calls, TV programs and movies—the content is very prohibitive in the Philippines.

It is also rather expensive for the telecoms giants to invest in making or hiring US and European content to feed 3G customers.

As a result, the earlier hopes to develop great business from 3G technology have not been realized.

In addition, the growth in cellular-phone users has also slowed compared to the surges in growth of the early 2000s. In an earlier interview with Edgardo Cabarrios, chief of the National Telecommunications Commission (NTC) Common Carriers Authorization Division, The Times learned that the increase of mobile-phone subscribers this year may not be bigger and faster than in 2006.

Data from Smart Communications Inc. and Globe Telecom show that the number of subscribers reached about 40 million last year from 34.78 million in 2005. Smart and sister-firm Pilipino Telephone Corp. have a total of 24.2 million subscribers, while Globe and Touch Mobile subscribers stood at 15.7 million.

“We believe that the Internet access space in general and broadband connectivity in particular, are on the cusp of witnessing a swell demand similar to the exponential growth we saw in the mobile-phone industry a few years back,” Gerardo C. Ablaza, Globe president and chief executive said.

“We intend to be at the forefront of this opportunity, harnessing the capabilities of both wired and wireless broadband technologies to make the Internet available and relevant to all,” he said.

Ablaza said that his company’s broadband business continues to show robust growth, registering a year on year increase in subscribers of 129 percent bringing its cumulative base to 51,426 as of end 2006.

To be continued tomorrow

“This growth is attributable to the increasing affordability of our consumer broadband offerings which are now bundled with free landline service with waived monthly fees in selected franchise areas,” he said.

As of December 2006, Innove increased its total wireline voice subscribers by 5 percent to 383,876 from 362,143 in 2005. This subscriber base is comprised of 63-percent postpaid and 37-percent prepaid with business to residential mix ratio of 22:78.

As of 2006, Globe wireline voice service revenue slightly dropped by 2 percent from P4.4 billion in 2005 to P4.3 billion in 2006.

The company has 5,884 cell sites at year-end and currently serves 98 percent of the population with 94 percent geographic reach.

Ablaza said that for this year, the company allocated a substantial portion of the company’s capital budget for infrastructure investments in 3G (third generation) technology with HSDPA, DSL and other broadband technologies as Globe work toward establishing a pervasive access network.

On the other hand, consistent with PLDT’s intent to develop new businesses beyond cellular, its unit Smart has grown its wireless broadband subscriber base to about 122,000 by end of 2006 under its Smart Bro wireless broadband service.

Smart has close to 2,500 wireless broadband-enabled base stations providing high-speed Internet access to about 500 cities and municipalities all over the Philippines.

The increasing network coverage of Smart Bro continues to provide the PLDT with a complementary service in areas that are currently not covered by PLDT’s fixed line DSL (digital subscriber line) service.

“The strong performance of Smart is underpinned by its commitment to push back barriers to drive both subscriber activations and usage. We are not content to uphold merely our leadership position in the industry. We continue to pursue innovation and to build new businesses around our mainstream voice and text services with the objective of bringing positive and practical changes to people’s lives,” Nazareno said.

Fixed line service revenues decreased by 1 percent to P49.1 billion in 2006 from P40.7 billion in 2005.

The company’s retail DSL continued to grow as broadband subscribers exceeded 133,000 at the end of 2006 with another 300,000 subscribers using PLDT’s Vibe dial up Internet service.

PLDT DSL and Vibe contributed P3.5 billion in revenues for 2006 or 32 percent from P2.7 billion in 2005.

PLDT DSL and Vibe made up 69 percent of the PLDT group’s broadband and Internet revenues for 2006.

Broadband and Internet revenues grew 49 percent to P5.2 billion as PLDT DSL and Smart Bro subscribers more than doubled to 265,000.

“Our ability to stay ahead in the broadband revolution is particularly important for the fixed line business as it enables us to manage the transition from traditional voice services to other revenue streams that can deliver growth for the future,” Nazareno said.

“In 2007, we will work on the integration of our information technology and other convergent platforms. We will maximize the opportunities provided by our large subscriber base and our extensive infrastructure, especially in the rapidly expanding broadband space where we can harness our fixed and wireless capabilities to capitalize on its huge potential,” Nazareno added
By Darwin G. Amojelar - Manila Times Reporter