Globe backtracks on unlimited text service tack amid weak net
(Business World, Kerlyn Bautista)

Globe has already secured the go-ahead of the National Telecommunication Commission (NTC) for the promo on sending unlimited short message service (SMS) or text messages.

In a bid to shore up revenues and woo new subscribers, Globe Telecom, Inc. is launching this month an unlimited text messaging service, which the Ayala-led telco had once said would not be a sustainable offering since it could reduce the quality of mobile services due to network congestion.

Globe has already secured the go-ahead of the National Telecommunication Commission (NTC) for the promo on sending unlimited short message service (SMS) or text messages.

The 30-day Globe Prepaid and Touch Mobile’s Unlimited SMS Promo, will hit the market not later than Aug. 8.

Globe is expected to report weak second-quarter net addition of subscribers and revenues as a result of increasingly competitive mobile market and smaller consumer spending.

In the first quarter, Globe said revenues grew by a slower 5% to P13.5 billion.

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Although Globe said wireless subscriber base grew 42% to 12.9 million in the first quarter ending March, it still missed the 13 million targeted by end-2004. Average revenue per user also declined as the company expanded operations in the provinces.

In a ruling, NTC approved Globe and Touch Mobile’s within-network unlimited text promo. The promo would allow Globe prepaid, Touch Mobile, Globe Gizmo, and Globe Prepaid Traveller’s subscribers to send unlimited text messages to other Globe subscribers for P15 within one day and P30 within two days.

To register, subscribers should have at least P16 and P31 load. They should text ALLUWANT to 2870 to join the promo, which will be activated 24 hours after registration.

The expiry period for unlimited text messages is independent from the expiry of the remaining regular load.

Globe, a joint venture of Ayala Corp. and Singapore Telecom, expects consumer spending on telco services to sag this year as inflation is seen to rise to 8% by yearend.

Globe was down P10 or 1.19% at P830 in yesterday’s trading.