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

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

Congress to review telcos' franchises--Nograles

Speaker Prospero Nograles said Friday that the House of Representatives will review the franchises given to telecommunications companies to find out if they were allowed to charge subscribers for sending text messages.

Nograles, himself a habitual texter, said even the poorest Filipino household spends P25 to P60 daily to communicate wirelessly through text messages. That, he said, is roughly the cost of two kilograms of rice or 10 packs of instant noodles.

The House leader said projections that oil prices in the world market will increase even further will make life even more difficult, and "it is the obligation of the government to find every available option to help the public cope with the present economic situation."

"We have to review the specifications of their franchises. We are in the middle of a very difficult economic situation and it will be a great help if we can remove the use of SMS from their daily budget," Nograles said.

Nograles said the House may also amend the franchise of the country's telecommunications companies to compel them to stop charging their customers for text messaging.

Nograles made the remark after Transportation and Communications Secretary Leandro Mendoza suggested that telcos make the short message system of SMS free of charge.

Reached for comment, Smart Communications spokesperson Mon Isberto said the company was deferring comment "pending clarification of the government proposal."

"I fully support Secretary Mendoza's proposal to make SMS free of charge. I will immediately direct our committees on franchise, oversight and on telecommunications to look into this and review the congressional franchises of these telecom companies," Nograles said.

"We have to check whether they are legally allowed to charge for text messages. If their franchise allows them to do so, we can make corrective measures and file a resolution as soon as possible for the National Telecommunications Commission to address this concern," he added.

Nograles said that he will ask the House committees on legislative franchises, on information and communications technology and on oversight to review the legislative franchises.

The Speaker is known to send his press statements and media comments via text. He started the practice when he was still majority leader of the 13th Congress and continued the habit even after he became the leader of the House.

Nograles believes text messaging has become a necessity even among the poor who rely on this technology for their day-to-day personal and business communication requirements.
By Norman Bordadora - Philippine Daily Inquirer

Libreng text iginigiit ng Kongreso

IPINUPURSIGI na sa Mababang Kapulungan ngayon ang panukalang maging libre na ang singil sa mga Short Messaging System (SMS) o text message sa bawat mobile phone sa bansa.

Ayon kay House Speaker Prospero Nograles, inatasan na niya ang House Committee on Legislative Franchise; Committee on Information and Communications Technology and Oversight Committee para bulatlatn ang panukalang legislative franchise.

Ipinalabas ang kautusang ito ni Nograles kasabay ng pagpapalabas ng suporta sa panukala ni Transportation and Communication Sec. Leandro Mendoza para sa mga libreng text message.

“I fully support Secretary Mendoza’s proposal to make SMS free of charge. I will immediately direct our committees on franchise, oversight and telecommunications to look into it and review the congressional franchises of these telecoms companies,” sabi pa ni Nograles sa kanyang press statement kahapon.

Ayon sa mambabatas, malaking tulong sa bawat Pinoy ang nauusong ‘text’ sa cellphone, lalo na iyong mga tumatangkilik sa makabagong teknolohiya para magamit sa mga personal at panghanapbuhay nilang pangangailangan sa larangan ng komunikas-yon.

“We have to review the specifications of their franchise. We are in the middle of a very difficult economic situation and it will be a great help if we can remove the use of SMS from their daily budget,” dagdag pa nito.

Sa tantiya ni Nograles, umaabot sa P25 hanggang P60 ang nagagastos ng bawat cellphone subscribers ngayon para lamang sa pakikipag-text araw-araw. Ang halagang ito aniya ay katumbas na ng dalawang kilo ng bigas o 10 pakete ng instant noodles.

Ayon pa kay Nograles, dahil sa walang puknat na pagtaas ng presyo ng krudo at langis sa bansa, mas-yadong mabigat na para sa pasanin ng mamamayan kung pati ang mga text message ay nasisingil pa ng mga telecommunication companies.

Dahil dito, sakaling mapag-aralan ang lahat ng butas sa prangkisa ng mga telecom companies sa bansa, maaari aniyang maamyendahan ang batas para maging libre na ang bayad sa text. By: Marlon Purificacion - Journal online

Nene: Stop cellphone gimmicks

By: Bernadette E. Tamayo - Journal
SENATE Minority Leader Aquilino Pimentel, Jr. wants to prohibit telecommunications companies from sending unsolicited materials like advertisements and contests to cellphone subscribers via text or short message service (SMS).

He filed Senate Bill 1138 regulating the sending of materials by network companies via text which are not solicited by the subscriber.

He pointed out that cellphone services, including text or SMS, are paid for by all subscribers. Unlike free services, therefore, there is no justification for such unsolicited materials.

“As competition among cellphone companies gets fierce, they have started to look into their existing customers as a renewable market through gimmicks, subscriptions and contests by increasing their availment of cellphone services,” Pimentel said.

He said telecom companies have resorted to these gimmicks as post-paid plans get more attractive and pre-paid cards get smaller in denomination with the market for cellular phones nearing saturation, especially in Metro Manila.

Under SBl 1138, network companies are prohibited from sending unsolicited materials such as advertisements, offerings, promotions, subscriptions and other notifications to their subscribers via text. The only exception is legitimate notifications of past due accounts.

Companies found to have violated this prohibition will be punished with a fine of P20,000 to P100,000 per violation.

Any director, officer or employee found to have authorized or otherwise permitted the prohibited act shall likewise be fined P1,000 for the first offense, P2,000 for the second offense and P3,000 for the third offense. For the fourth and subsequent offense, the violator shall suffer the penalty of imprisonment of not less than one month.

Pimentel echoed the common complaint of cellphone users that telecommunication network firms indiscriminately send unsolicited materials to subscribers, jacking up phone bills.

“More often than not, unknowing customers have been victimized by such offerings sent by cellphone companies via text or short message service, only to realize later that such contests and subscriptions have jacked up their monthly bills or consumed all of their pre-paid credit,” he said