And the Telecom War is on...

[silver_corolla]

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.

TARGET

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.

[Juan Tamad]

RP telcos Q2 net seen dampened by forex losses


The country’s top two telecom firms are likely to post lower quarterly profits this week as subscriber growth slows and a weak peso makes payments on foreign-denominated debts more expensive, analysts said.

Philippine Long Distance Telephone Co.(PLDT) and Globe Telecom Inc. would struggle to match profits from the same quarter last year, when the run-up to a presidential election sparked a nationwide surge in mobile phone use.

Competition from a third mobile player, Digital Telecommunications Inc., and a maturing industry facing weaker subscriber growth are also eating into profit growth.

PLDT would post net income between P4.60 billion and P6.75 billion ($82.1 million to $120.5 million) in the second quarter to June, three analysts surveyed by Reuters estimated. This was lower than a 6.8 billion-peso profit a year ago.

The company has said it expected second-quarter core profits, or its profits without extraordinary gains, to at least match the P7 billion it posted in January to March.

PLDT, due to release second-quarter results on Thursday, controls nearly all of the fixed-line traffic in the Philippines and has 58 percent of the mobile phone market through its units Smart Communications Inc. and Pilipino Telephone Corp.

Globe, with about 38 percent of the mobile market, is expected to post second-quarter profit on Wednesday between P1.5 billion and P2.5 billion, the analysts said, down from P3.8 billion in the same three months of 2004.

PLDT had mostly foreign-denominated debts of $2.4 billion and Globe over $900 million at the end of the first quarter. A weaker peso made repayments costlier in the quarter just ended, the analysts said.

Allegations of election fraud against President Gloria Arroyo helped push the peso down to 56 per U.S. dollar in late June from about 54.75 at the start of the quarter, which analysts said would weigh on profits.

"Both telcos would show an adverse impact on forex," said Jojo Gonzales, managing director of Philippine Equity Partners.

PLDT, partly owned by Hong Kong's First Pacific Co. Ltd. and Japan's NTT Communications, has said it paid off loans of $100 million in the second quarter after debt payments of $150 million to $200 million in the first quarter.

PLDT shares rose almost 17 percent in the second quarter as Globe -- owned 44.6 percent by Singapore Telecommunications Ltd. -- fell nine percent. The Philippines' main stock index lost 1.6 percent in the period.

Hitting the ceiling?

About 40 percent of the country's 85 million people have a mobile phone, compared to 42-43 percent in Thailand and 57 percent in Malaysia. There is more room for growth in Indonesia, for example, where only a fifth of the population use mobiles.

Even Digitel Telecommunications' net additional subscriber numbers have been slowing, proof that it is only serving a market niche, an analyst from a foreign brokerage said.

PLDT is expected to have net profit of P28.6 billion this year, up about two percent from P28 billion in 2004, according to consensus forecasts from Reuters Estimates.

Globe's net profit was seen at P11.1 billion this year, down about 1.7 percent from 11.3 billion pesos last year.

Analysts said PLDT and Globe might realize cost savings after both cut, in the second quarter, a SIM-swap mobile subscriber promotion that did not create much revenue.

"They're cleaning up their subscriber base," said Jody Santiago, research head at UBS Securities Philippines Inc. "It's not really revenue-generating, but they said cutting the programme would mean over P1 billion in savings a year."

Newspapers reported on Monday that Globe expects slower revenue growth in the second half, with analysts saying this was mainly due to the possible impact of a broader sales tax.

The Supreme Court stopped the expanded value-added tax hours after it came into force on July 1 as opposition groups and oil dealers questioned whether it was constitutional.

If the court freeze is lifted this month, as is widely expected, prices of fuel, power and other items are likely to rise. That may result in lower mobile phone usage as consumers scrimp on spending, the analyst from the foreign brokerage said.

Reuters/abs-cbnNEWS.com

[9MX]

Buwaya mga yan!!! Billions of peso ang kinikita....

dude,

i'm also from the telco industry. huwag naman ganyan. i'd like to think that most people or groups na pumasok sa negosyo (any industry) aims to serve or be of service while making a modest profit on the side. minsan may mga sectors that na nakakajackpot, remember the real estate boom in the early 90s? pero lahat ng bagay may katapusan, hindi naman araw araw pasko

fish tayo pards

[Juan Tamad]

dude,

i'm also from the telco industry. huwag naman ganyan. i'd like to think that most people or groups na pumasok sa negosyo (any industry) aims to serve or be of service while making a modest profit on the side. minsan may mga sectors that na nakakajackpot, remember the real estate boom in the early 90s? pero lahat ng bagay may katapusan, hindi naman araw araw pasko

fish tayo pards

[Juan Tamad]

Globe Telecom says H1 net down 38 pct


Globe Telecom Inc., the country’s second-largest phone firm, said it posted a 38 percent drop in net income in the first half largely due to higher income tax provisions and operating expenses, ABS-CBN learned Wednesday.

Globe -- owned by Singapore Telecommunications Ltd., the biggest shareholder, and conglomerate Ayala Corp. -- said it had net profit of P4.2 billion ($75 million) in the first half from P6.8 billion in the same period last year.

This means the company posted net income of about P1.2 billion in the second quarter after profits of P3 billion in the first three months of the year.

Globe President Gerardo Ablaza told reporters on Tuesday the company posted income of about P1.3 billion in the second quarter, lower than analysts' expectations of profits ranging from P1.5 billion to P2.5 billion for the quarter.

Globe had net profit of P3.8 billion in the second quarter last year.

Reuters/abs-cbnNEWS.com

[silver_corolla]

[SIZE=4]Sick of Sun Cellular[/SIZE]
(The Manila times, NOTHING IN PARTICULAR By Robert JA Basilio Jr. ) In my kind of business, it always pays to subscribe to a mobile-phone operator with reliable service, nationwide network coverage and, most important of all, a young and pretty endorser such as—and I’m just thinking at the top of my head here—Heart Evangelista. This is why, to this day, I remain mystified as to why I agreed to become a subscriber of Sun Cellular.

************************************************** ********

THANKS to cellular-phone technology, instant communication has been taken for granted by millions of Filipinos, many of whom are unwilling to pay for correct jeepney fares but think nothing of spending a peso or two just to be your next text mate.
And in my kind of business (the monkey kind), it always pays to subscribe to a mobile-phone operator with reliable service, nationwide network coverage and, most important of all, a young and pretty endorser such as—and I’m just thinking at the top of my head here—Heart Evangelista.

This is why, to this day, I remain mystified as to why I agreed to become a subscriber of Sun Cellular.

And don’t get me started on Sun’s current endorser—a young, energetic male given to sporadic bouts of dancing in the street—because he has only succeeded in irritating me no end.

This, unfortunately, is just about the same thing I can say for Sun Cellular’s mobile-phone service.

And I think I am being very generous when I say that.

Irritation, after all, is such an inaccurate word to describe what I go through whenever repeated attempts to call or text using my Sun cell phone results in network failure.

For the past few months, my phone signal has fluctuated like the heartbeat rate of a patient having a seizure.

A number of friends have thus failed to connect to my Sun cell phone, despite repeated and consistent attempts to do so.

During the past two weeks, Sun’s service went from bad to worse. The seizure, I am sad to report, has now developed into a full-blown coma.

For three days during the past week, I had no signal at all on my cell phone for four to six hours.

It has thus thrown me back to the early days of communications when smoke signals, bongo drums, and carrier pigeons were cutting-edge.

But the story doesn't end there.

Due to my congenital idiocy, I had previously agreed to enter into a two-year, postpaid service contract with Sun Cellular, thinking that its service would improve.

I was wrong.

Agreeing to the contract was probably one of the worst decisions of my life, next to the time I agreed to attend a family reunion.

Attending a reunion, however tedious and boring, usually lasts for only a day.

While regrettable, it is nevertheless tolerable, especially since relatives will not be seen again (at least not for another year or nevermore, depending on one’s luck).

But a Sun Cellular service agreement is different, especially one between a deadline-beating bum with congested sinuses and a mobile phone company with a congested network.

Obviously enough, the odds are stacked against bum, who has to pay good money for bad service.

Last week, when Sun’s signal went south for the nth time, I decided to take charge.

I talked with a Sun customer service representative—Patrick, I think his name was—and I let him have it.

To his credit, Patrick was kind, patient and attentive.

But I can tell you one thing: his company is no longer getting any money from me. Contract or no.

Goodbye, Sun.

[carfrancis]

[SIZE=4]Sick of Sun Cellular[/SIZE]
Goodbye, Sun.[/B]

exactly my dad's sentiments. he's thinking of subscribing to smart na nga eh. we went there ystrday, un shop sa gateway. probably by september.. sasabay na nga rin sana ako kya lang wla raw ongoing promo for switchers. makadiscount sana sa phone. hehehe

[Juan Tamad]

exactly my dad's sentiments. he's thinking of subscribing to smart na nga eh. we went there ystrday, un shop sa gateway. probably by september.. sasabay na nga rin sana ako kya lang wla raw ongoing promo for switchers. makadiscount sana sa phone. hehehe

Matutuwa si silver_corolla kapag nagsubscribe kayo sa Smart..

[silver_corolla]

Matutuwa si silver_corolla kapag nagsubscribe kayo sa Smart..

si hytan este si Juan Tamad matutuwa din malamang!

[M]

what i don't understand kasi is why the hell NTC is sitting on top of all this like a m0r0n!

NTC should be a governing body that looks into subscriber base numbers and cross check this with the power handling capacity of the cellular sites spread across the country. There is a limit to how many accounts a cellular site can juggle around. Millions yes, but it is not inifinite.

IMHO, Sun Cellular should no longer be accepting new subscribers except if it is a swap of services ... at least until they have improved on their infrastructures and is actually able to sustain their subscriber base.

This applies to all telecom providers as this has also been Globe's problem before when they did not anticipate the jump in subscriber growth at the birth of digital cellular communication back in the 90s. Remember that the NTC issued a TRO for Globe until they have properly installed new infrastructure to accomodate their subscribers? so, bakit hindi ginagawa ng NTC ngayon ito sa Sun Cellular?

[silver_corolla]

what i don't understand kasi is why the hell NTC is sitting on top of all this like a m0r0n!

NTC should be a governing body that looks into subscriber base numbers and cross check this with the power handling capacity of the cellular sites spread across the country. There is a limit to how many accounts a cellular site can juggle around. Millions yes, but it is not inifinite.

IMHO, Sun Cellular should no longer be accepting new subscribers except if it is a swap of services ... at least until they have improved on their infrastructures and is actually able to sustain their subscriber base.

This applies to all telecom providers as this has also been Globe's problem before when they did not anticipate the jump in subscriber growth at the birth of digital cellular communication back in the 90s. Remember that the NTC issued a TRO for Globe until they have properly installed new infrastructure to accomodate their subscribers? so, bakit hindi ginagawa ng NTC ngayon ito sa Sun Cellular?

Oo nga naman.

[silver_corolla]

exactly my dad's sentiments. he's thinking of subscribing to smart na nga eh. we went there ystrday, un shop sa gateway. probably by september.. sasabay na nga rin sana ako kya lang wla raw ongoing promo for switchers. makadiscount sana sa phone. hehehe

Hi carfrancis!

You can have a discounted phone or a FREE phone. Just apply for Postpaid Account to your nearest Smart Wireless Center around you.

Ano ba gusto mong phone???

Br,
silver_corolla

[carfrancis]

Hi carfrancis!

You can have a discounted phone or a FREE phone. Just apply for Postpaid Account to your nearest Smart Wireless Center around you.

Ano ba gusto mong phone???

Br,
silver_corolla

hi SC!

gus2 ko sana 6101 pero dpa raw available sa smart un. my dad wants to the 3230. hehehe.. if we both apply for a plan 800, what deal can we get sa units?

[silver_corolla]

hi SC!

gus2 ko sana 6101 pero dpa raw available sa smart un. my dad wants to the 3230. hehehe.. if we both apply for a plan 800, what deal can we get sa units?

Hi CF!

Nokia 6101 is not yet available in Smart. But Nokia 3230 is only PhP14,400.00 for Plan 800.

Br,
SC

[silhouette]

Hi carfrancis!

You can have a discounted phone or a FREE phone. Just apply for Postpaid Account to your nearest Smart Wireless Center around you.

Ano ba gusto mong phone???

Br,
silver_corolla

woaaa! now you're a marketing/sales guy.
bigyan mo na ng aftersales...

[silver_corolla]

woaaa! now you're a marketing/sales guy.
bigyan mo na ng aftersales...

hi mon! hehe... all around na to 'pre ngayon! oist! sya nga pala pwede na ba ako magbayad ng Wi-Fi ko thru Smart Money? Link mo na nga muna ang Smart Money ko sa Wi-Fi payment para naman less hassle na sa akin punta-punta sa Wireless Center sa baba. Sabagay ok lang marami namang chikababes don. Mga bagong employed pre! Tama na muna pagtsi-tsikot mo! ayusin mo muna yung integration ng Wi-Fi sa Smart Money! Hehe...

bigyan ko na lang sya ng aftersales kapag bumuli na sya.... Hehe... ;)

[silhouette]

hi mon! hehe... all around na to 'pre ngayon! oist! sya nga pala pwede na ba ako magbayad ng Wi-Fi ko thru Smart Money? Link mo na nga muna ang Smart Money ko sa Wi-Fi payment para naman less hassle na sa akin punta-punta sa Wireless Center sa baba. Sabagay ok lang marami namang chikababes don. Mga bagong employed pre! Tama na muna pagtsi-tsikot mo! ayusin mo muna yung integration ng Wi-Fi sa Smart Money! Hehe...

bigyan ko na lang sya ng aftersales kapag bumuli na sya.... Hehe... ;)

pareng pete. malapit na yan. mapapadali na buhay mo sa wifi. kung baga sa sinaing, ini-inin na lang. pag ok na, update mo na ang biller mo sa phone. hehe.

[silver_corolla]

pareng pete. malapit na yan. mapapadali na buhay mo sa wifi. kung baga sa sinaing, ini-inin na lang. pag ok na, update mo na ang biller mo sa phone. hehe.

Stable na nga connection ng Wi-Fi ko e.... Ang galing!!!!

sigue follow-up ko kila sir orlie kung ano na status ng integration nila.... hehe... ano ba biller code ng Wi-Fi?