Nokia Siemens back in black

Nokia Siemens Networks says delays in third-generation (3G) licensing over the past five years have slashed the country's annual network spending by at least 40% to 30 billion baht.

However, the new 3G commitment by the two state telecom enterprises TOT Plc and CAT Telecom, along with a 2G network upgrade by Advanced Info Service, will help the world's second-largest wireless infrastructure provider return to positive growth this year after a two-year decline.

Krittika Mahattanakul, head of the Asia North subregion for Asia-Pacific at Nokia Siemens Networks (Thailand), said delays in 3G network spending were expected to cause a sharp decrease in overall network spending growth to 30 billion baht this year.

However, Nokia Siemens Networks expects revenue growth of 25% this year to 6.25 billion baht, driven by its winning bid for TOT's 15.99-billion-baht 3G project under the SL consortium.

Nokia Siemens has a contract to install a core 3G network and 2,143 base stations over a six-month period.

The company is not required to seek approval from the acting National Broadcasting and Telecommunications Commission to import the equipment, as TOT already received approval early this year.

Mr Krittika said Thailand was one of only a few countries in the region still without 3G.

"Once 3G is available, we believe mobile broadband growth will grow substantially thanks to fast-growing demand for smartphones and tablets," he said.

3G is expected to gain a 10-15% share of the Thai mobile market within the next two years, although 2G service will still exist for perhaps another decade.

Mr Krittika also said the company is conducting a feasibility study into establishing a research and development (R&D) centre in Thailand to take full advantage of emerging mobile broadband potential.

The facility would be designed specially for long-term evolution (LTE) technology, he added.

Nokia Siemens recently built an R&D centre in the Philippines for LTE innovation.

SMC airs interest in controlling telco firm

SAN MIGUEL Corp. (SMC) yesterday expressed interest in raising its stake in Eastern Telecommunications Philippines, Inc. by acquiring the 37.7% share held by an Ongpin-led company.
The plan, if fulfilled, will allow San Miguel to control nearly three-quarters of the telco on top of the conglomerate’s existing stake in Liberty Telecoms Holdings, Inc.

This, after San Miguel, through wholly owned telecom unit Vega Telecom, Inc. already purchased last Dec. 30, 2010, 100% of A.G.N. Philippines, Inc., which had owned a 40% stake in Eastern Telecommunications.

“We’re still studying it... [but] yes, we’re interested,” San Miguel President Ramon S. Ang told reporters after the annual stockholders’ meeting of Manila Electric Co.

San Miguel owns at least a 27% stake in Meralco.

Mr. Ang said the purchase of ISM Communications’ remaining stake will “most likely” be done through Vega Telecom.

Eastern Telecommunications provides data, voice and Internet services through fixed lines to business process outsourcing firms.

When asked if he plans to consolidate Eastern Telecommunications with his other telecom unit, Liberty Telecoms Holdings, Inc., Mr. Ang merely said no.

Liberty Telecoms, which was a dormant listed firm prior to Qatar Telecom and San Miguel’s investment in 2009, focuses on wireless broadband services. Unit wi-Tribe Telecoms, Inc. launched its 4G broadband service in February 2010.

Last week, ISM Communications’ President Eric O. Recto said the firm will be divesting its shares in Eastern Telecommunications and European information technology company Acentic.

The firm will be selling its 37.7% stake in Eastern Telecommunications and 32.5% stake in Acentic for an undisclosed amount. As of end-2010, the firm’s stake in the two companies had a book value of around P1.8 billion.

ISM Communications swung to a P3.19-million profit in the first quarter from its P1.72-million loss.

San Miguel, for its part, more than doubled its consolidated net income to P7.14 billion in the first quarter from year-ago levels.

Aquino govt towing rivals' line, says PLDT

service of Sun Cellular by connecting to the wider PLDT infrastructure. Our goal here is not to do away with the Sun Cellular service. We will keep it and enhance it," the executive said.

Lance Gokongwei, Digitel director and president of JG Summit Holdings Inc. said in a statement before a Senate hearing that the deal would benefit the public and as such conforms with its franchise terms, which are founded on public service.

With PLDT's reach, fiber optic backbone, and stable network quality, Sun's unlimited service would grow and deliver better service, he said. "This is the greatest benefit of this transaction, and consumer satisfaction from a bigger and quality network is really what our franchises are for," he added.

Pangilinan said Globe Telecom Inc., which is blocking the PLDT-Digitel deal, had lost in its bid to acquire the Sun Cellular operator.

"They seem not to object on the transaction provided they get additional frequency from government. Our position there is we're neutral. If government deems it fit to give them frequency, if that's what they think, then so be it," Pangilinan said.

In a separate statement, Rodolfo Salalima, legal counsel of second-ranked Globe, said the telco expresses its deep concern over the serious adverse effects of the PLDT-Digitel deal on free competition and consumer interests.

"Again, this is monopolistic arrogance rearing its ugly head. The right to access and seek legal relief from the courts or quasi-judicial bodies is a perfect right granted by law. PLDT, thus, is out of tune when it accuses Globe of malice when Globe was simply exercising its legal right in law--to uphold free competition and pro-consumerism," Salalima said.

Besides Ayala-led Globe, Eastern Telecommunications Philippines Inc., Seland Telecommunications Inc. and consumer group TxtPower have lodged their opposition to the PLDT-Digitel deal.

State-run Philippine Institute for Development Studies (PIDS) earlier said the acquisition may hurt competition because of high entry barriers and the absence of effective competition.

Sun Cellular to be PLDT's unlimited service brand

SUN CELLULAR will be the umbrella brand for unlimited call and text services once telecommunications giant Philippine Long Distance Telephone Co. (PLDT) realizes its acquisition of Digitel Telecommunications Philippines, a PLDT official said Tuesday.

Lawyer Ray Espinosa, PLDT Head of Regulatory Affairs and Policy, told the Senate committee on public services that Sun's unlimited call and text services will continue even after a "share swap" deal between PLDT and Digitel.


"Unli (Unlimited) is the service that the masses want. If you don't have Unli, the masses will not use your service," he said at a hearing on the PLDT-Digitel deal. He said the unlimited services will continue "because if (we) don't, somebody else will offer it."

He added that PLDT's financial resources and infrastructure will extend the availability of the Unli services to Visayas and Mindanao.

Senator Joker Arroyo, who filed the resolution for hearings on the deal, had earlier raised concerns that it would mean poorer service for consumers.

"Historically, when there were just two of you (Smart and Globe), programs for the masses were not forthcoming," he said, adding that it took the entry of Digitel's Sun into the market to bring down call and text rates.

Arroyo, and committee chairman Senator Ramon Revilla Jr., said last month that the deal would give PLDT around 70 percent of the mobile phone market. The senators said the resulting duopoly between PLDT and Globe Telecom might impact the price and quality of mobile phone service.

Arroyo earlier said that the merger would need approval from Congress because it would change the nature of the franchise granted to Digitel. He said the franchise prohibits the sale of controlling interest in Digitel.

But for Senate President Juan Ponce Enrile, an equality clause in the franchise means the deal can push through even without the nod of Congress.

He said the clause gives Digitel the same rights that other telecommunications companies were given. He said other mergers and acquisitions were allowed in the past even without congressional approval.

He added PLDT did not buy Digitel's franchise, just a controlling interest in the company.

Espinosa, in his opening statement, said the deal was in the public interest because of "the benefits it will bring millions of Filipinos nationwide and to the country as a whole."

He explained that the deal will accelerate the penetration of mobile broadband services. He said that combining PLDT and Digitel's resources will give 95 percent of the country access to mobile broadband within three years.

Espinosa's counterpart at Globe Telecom, lawyer Rodolfo Salalima, said the deal may be legal "but precisely, a big monopoly is getting bigger and bigger."

He said that PLDT-Digitel would be "too powerful" and would give PLDT "every incentive to delay interconnection."

He said that of 31 applications for interconnection between PLDT and Globe, only one deal in Davao has pushed through.
He said that if the local government of Davao had not stepped in, interconnection would not have taken place.

Committee chairman Revilla later told the National Telecommunications Commission to help resolve interconnection issues between Globe and PLDT.

Globe also earlier complained of unfair competition since it only has one block of frequencies while PLDT, through Smart, Cure (Red Mobile), Piltel (Talk N' Text), and Digitel, will have four blocks of frequencies.

Salalima said Globe is "deeply concerned over the serious adverse effects (of the deal) on free competition and pro-consumerism."

It was found that Globe also tried to acquire Digitel but that PLDT countered by doubling what Globe offered.

"That's what they're saying now because they want to use Congress so the deal will favor them," Enrile said, followed by "No way."

JPE: PLDT, Sun deal legal

Senate President Juan Ponce Enrile Tuesday stated that the deal between the Philippine Long Distance Telephone Co. (PLDT) and Digitel, operator of Sun Cellular, is legal and does not require congressional approval.

“There is no need for approval of Congress on the merger of Digitel and PLDT because Congress, which gives licenses to telecoms franchises, allowed Digitel to sell the controlling interests of the succeeding company, like the PLDTSmart,” Enrile said.

PLDT bought the controlling interests of Digitel for P79 billion, but the deal is pending approval of the National Telecommunications Commission (NTC).

To ventilate consumers’ views, the Senate Committee on Public Services chaired by Sen. Ramon “Bong” Revilla Jr. held an inquiry Tuesday to determine the impact of the deal, particularly the issue of telecom promos like unlimited texting.

The inquiry was called also based on the resolution of Senator Joker Arroyo calling the committee to conduct a review, in the exercise of its legislation, of the reported share-swap deal and related transactions of the PLDT and Digitel.

During the hearing, Sen. Arroyo said the inquiry was not to investigate the deal but to determine whether the transaction is consistent with or are not in violation of certain provisions of their respective legislative franchises and that the arrangement would be to the public interest.

Enrile said there was no basis of Globe Telecom’s concern over the serious adverse effects of the PLDT-Digitel deal on free competition and pro-consumerism.

With this, he said, the government cannot revoke the deal.

Enrile even chided Globe officials, saying they are using the Senate to favor their complaint about the acquisition of Digitel by the PLDT. “There’s no way they can use the Congress to favor them,” said Enrile.

“Mababa ang presyo ng Globe, gusto nila eh mababa, kaso eh dinoble ng Smart ang presyo kaya sila ang nakabili ng Digitel. Smart is really smart, and business is just like gambling, kung talagang di ka desidido sumugal, eh matatalo ka,” said Enrile. (“Globe’s bid price is very low, but Smart doubled the price and so they succeeded in acquiring Digitel. Smart is really smart and business is like gambling, if you are not determined you’ll surely lose.”)
But Enrile urged the NTC that the frequency of both should not be given for free as has been the practice for quite so long. “They must sell it. It’s a natural resource and valuable asset. In other countries they bid it out, Enrile told reporters.

On the issue of monopoly, Enrile said monopoly alone does not mean that it is bad, because there are natural monopolies that give you the franchise to operate a public utility in a given area, that’s a monopoly but the price is regulated.

He said in this case of PLDT-Digitel deal, there is no showing that the acquisition is to restrain competition.

On the other hand, the PLDT officials who attended the inquiry assured the public that their services will be further improved with the acquisition of the Digitel.

Atty. Ray Espinosa, director and head of the Regulatory Franchising of PLDT, assured the public that it will not remove the unlimited call and text service of Sun Cellular following its acquisition of the controlling share of Digitel Telecommunications. Mas marami na makikinabang sa Sun unli,” he said.

Espinosa pointed out that the deal will not only retain the “unli” services of Sun Cellular but it will make it stronger with wider and better coverage because Sun will utilize the advanced and extensive infrastructure of PLDT.
He also stated that the deal does not violate the provisions of the two firms’ legislative franchises because it aims to enhance public service.

“The transaction will also accelerate the pace of mobile broadband rollout and lead to the early creation of a robust nationwide mobile broadband backbone. With combined and optimized networks, it is expected that mobile broadband services will cover 95% of the country’s geographic areas in three years. This is consistent with the PLDT group’s Internet for all advocacy and will make mobile broadband widely available and more affordable to all Filipinos nationwide,” he said.

He further stated that “Digitel’s fixed line subscribers will benefit from PLDT’s extensive and enhanced nationwide digital fiber optic network and thus enjoy, among others, faster rollout of enhanced wired broadband services.”

He added that a similar deal was forged between Globe Telecoms and Islacom in the past which was approved by the Securities and Exchange Commission and the NTC in 2001.

“The transaction is in the public interest. It promotes the public interest. The transaction is pro-consumer, pro-masa,” Espinosa said.

Revilla said the NTC should immediately resolve the issue of interconnection of the telecom firms.

NTC Commissioner Gamaliel Cordova assured Revilla and other senators present in the hearing that the NTC is still on the stage of resolving the issue of interconnection and vowed to address the problem as early as possible.

Meanwhile, Malacañang said the letter of th the Ayala conglomerate to President Benigno S. Aquino III is not influence-peddling, saying anyone can air his views to the President if it is based on national interest.

Globe Telecoms sent a letter to President Aquino seeking additional Third Generation (3G)/Universal Mobil Telecom System (UMTS) frequencies, saying the merger of PLDT and Digitel results in an imbalance in 3G assignments.

The letter was signed by Globe Telecom Chief Executive Officer Jaime Augusto Zobel de Ayala, a staunch supporter of the President during the May 10, 2010 election.

Presidential Communications Development and Strategic Planning (PCDSP) Secretary Ricky Carandang said the letter cannot be considered as “influence-peddling.”

“I think any government is obligated to take into account the views, the legitimate views, of any stakeholder. There’s no question that Globe is a stakeholder, that they have certain views here,” he said.

Carandang said the President is aware of the issue and it is being studied by the economic team.

“The concerns of the President would be: number one, are we creating a situation where… that hampers fair competition in the industry. Number two, what impact will this have on the consumers. Those are the criteria that we’re using to evaluate,” Carandang said.

“What the President is aware of are the concerns that have been raised by Globe and other stakeholders. Even consumers are asking us: Is this going to lead to an end to the benefits that they have – the unlimited texts, the low cost of cellphone calls? Everybody who has a stake in the outcome of this merger has made their views known and I think it’s part of the democratic process and we’re evaluating it based on the merits,” he said.

LTE World Summit: a plan comes together

The strength and confidence the industry now has in LTE as a standard was underlined by the fact that a WiMAX and TDD networks conference was collocated, while those that wanted to know more about LTE in depth could attend the LTE master classes.

The topics under discussion at the World Summit took in the broader picture around the need for LTE as well as sessions dealing with specifics such as business models, and policy issues around spectrum.

Fast adoption

The event started out with the thoughts of Adrian Scrase, VP of the international partnership projects for the 3GPP. As he pointed out, just a few years ago the issue was whether LTE, WiMAX or even UMB would succeed 3G – now it is not even a question. Indeed, he highlighted the astonishing pace of the development of LTE pointing out that there are over 200 operators now fully committed to rolling out LTE, and 20 networks already launched making it the fastest growing mobile technology ever. This was all the more impressive considering that a year ago TeliaSonera stood alone in having rolled out LTE.

In his keynote, Ying Weimin, president of LTE Business Group for Huawei said that the vendor had more than 40 LTE contracts worldwide and that ten of these had gone live – and that this was just the beginning.

Deluge of Data

One of the opening keynote speakers, Bart Weijermars, the MD of T-Mobile in the Netherlands, dealt with meeting the challenge of the data deluge that will be heading our way in the not too distant future.

Data use will be fuelled by the further proliferation of appealing devices and to prove his point Weijermars noted that the data use of an iPhone 4 was some 780 per cent more than that consumed by the original 2G only iPhone, while an iPad 3G used 990 per cent more. Weijermars challenged the audience by asking them how networks would cope if all its users as the same time wanted to do the activities that are commonly predicted, such as intensively using smartphones and tablets, accessing cloud content, streaming video, roamed and spoke via VoIP – all at the same time. Making this possible was he said the mission for the industry and referred to it as “surfing the Gigabit wave”.

Christopher Kimm, from Verizon Wireless added that it took the first ten billion tweets took four years, while the next five billon were sent in just five months. While Verizon launched LTE in the US to cover 110 million people, the aim by 2015 was to cover 290 million.

Ying Weimin, president of LTE Business Group for Huawei pointed out that there are 200 million YouTube video views a day on mobile devices, and over a third of Facebook’s 600 million users access the site via mobile versions, while half of Twitter’s 165 million users also access it via mobile interfaces.

Tommy Ljunggren from TeliaSonera, explained how LTE was being used for high bandwidth applications such as TV, with the Royal Wedding in Stockholm in 2010 being streamed from six cameras without needed a satellite, and transmitting the Nobel Peace prize live from Sweden to Tokyo.

In terms of devices, Weimin predicted that Pocket Wifi (Mifi type devices) would be a ‘killer’ device for LTE expansion – no doubt as many legacy devices without integrated LTE will be able to access LTE speeds via an initial wifi connection.

Spectrum

For Weimin and Weijermars, spectrum was the number one concern – with a wide number of frequencies required to cover all eventualities from 700MHz, 800MHZ for rural, 1800MHz, 2100MHz for suburban, and 2.3, 2.5 and 2.6GHz for hot spots. Naturally, network deployments are all highly dependent on national spectrum auctions.

At the conference, Orange, TeliaSonera and T-Mobile joined forces to announce an initiative to use 1800MHz as a best compromise between coverage and capacity in order to roll out mobile broadband worldwide – either using LTE or even HSPA, depending on the local situation.

Speed

Another topic covered at the summit was the simple issue of speed. Hartmut Kremling, CTO of Vodafone D2 in Germany highlighted it as a major factir for LTE. With real world speeds of 5-6Mbps on the downlink, even on busy loaded cells, along with low latency, the benefits of LTE were much appreciated by its customers he said.

Business models

Naturally, many of the discussions were on business models for LTE services – whether to offer caps, or even to introduce usage packages for the types of activities used, such as browsing YouTube and accessing social networks. Seizo Onoe, managing director of R&D Strategy at NTT DoCoMo said he did not believe LTE as a technology cannot generate new revenues – but the services around it could.

Overview

In general, from Telecoms.com’s own discussions and interviews, the outlook at the show was overwhelmingly positive, with satisfaction at the accomplishments made so far, and confidence that future issues would be resolved. While there was general agreement that a lack of LTE smartphones was a concern, there was a strong belief they would come in solid numbers by the end of the year. While battery life is a noted issue, equally the ease of roaming was raised, as with the lack of spectrum harmonisation it is very unlikely a single device will compatible in many regions. It could be said that the focus on most operators was to get their own LTE house in order, and that either the market will naturally point towards a agreed roaming spectrum, as the 1800Mhz alliance is suggesting, or a technological solution will come along to solve the issue. Whether this heads down approach is a mistake is something that we will be in a good position to judge at next year’s European summit, due to be held in Barcelona.

As for the future, Adrian Scrase of the 3GGP said that even though we had not yet reached LTE Advanced, it was even time to start thinking about LTE Advanced, though he did express concerns over how it would be marketed, staring that he was worried, “people will call it 5G or something abhorrent. Let’s hope they call it Super Whizz LTE or something similar!”

The next date in the diary is LTE Asia 2011, due to be held in Singapore on 6-7 September.

Smart offers P5/30-min off-peak browsing rate

WIRELESS leader Smart Communications Inc. (Smart) is lowering the browsing rates of its various Smart Bro services to benefit subscribers that need to go online during "off-peak" hours.

Smart Broadband Inc. (SBI), the broadband unit of Smart, announced that for a limited time starting May 11, Smart Bro subscribers will be able to go online at the lower rate of only P5 for every 30 minutes, when they use it between 2 a.m. and 7 a.m.


The P5/30-minute rate will be available to all Smart Bro prepaid subscribers, including those that use the Plug-It dongle, the Pocket WiFi, and the micro-SIM.



To avail of the low rate, Smart Bro subscribers simply need to use the SMS functionality of their device to text OFFPEAKON to 2200 to register. They may also avail of the off-peak rate at www.smart.com.ph/connect. A P1 maintaining balance is required to avail of the low rate.

"While we continuously fortify our networks and optimize available technologies to ensure service quality, we also strive to keep access as affordable as possible and the array of options as wide as possible. This new, value-based offer is a progression of that direction," said Danilo Mojica, head of Smart's Wireless Consumer Division.

For prepaid users that prefer "unli" packages, Smart Bro also offers Unlisurf 50, which provides 24 hours of surfing for only P50. Unlisurf 100 provides two days of unlimited Internet access for P100, while Unlisurf 200 provides five days of access for only P200.

Eastern asks NTC to review PLDT-Digitel deal

Eastern Telecommunications Philippines Inc. (ETPI) has joined calls for a review of Philippine Long Distance Telephone Co.'s (PLDT) planned acquisition of third-ranked Digital Telecommunications Philippines Inc. (Digitel).

In an opposition filed with the National Telecommunications Commission (NTC), ETPI urged the regulator to impose conditions to ensure the deal will not kill competition.

It also called for an audit of the telco and other governemnt infrastructure concessions controlled by PLDT's parent, Hong Kong-based First Pacific Co. Ltd., in the Philippines.

ETPI said the NTC’s Competitive Policy considers market share as the most transparent indicator of a company's dominance.

It noted that a market share of 40% gives rise to a presumption of significant market power, while a market share of less than 25% is deemed insufficient for a player to behave as if it were unaffected by market forces.

ETPI said the PLDT-Digitel transaction will result in the PLDT group having significant market power by virtue of its control over Smart Communications Inc., Smart Broadband Inc., Connectivity Unlimited Resource Enterprise Inc., Digitel and Digitel Mobile Philippines Inc.

It said that the group "will acquire a commanding 70% market share of the entire suite of telecommunications services currently being offered" in the Philippines.

These services include cellular mobile communications, local exchange carrier (LEC) services, inter-exchange carrier (IXC) services, international gateway facilities (IGF), fixed and wireless broadband services, and value-added services.

"Likewise of importance is the control of the PLDT combine, its related companies and affiliates of various other companies and facilities… and government infrastructure concessions," ETPI said.

It cited Manila Electric Co. and its subsidiary, eMeralco Ventures Inc., both of which own and lease out significant fiber optic cables and telecommunications-related assets, such as poles, in areas where Meralco operates. Also part of the First Pacific group's concessions are the Subic-Clark-Tarlac Expressway and North Luzon Expressway.

"Related companies and affiliates of the PLDT combine will therefore be in a position to restrict access by competitors of the PLDT combine to such telecommunications-related facilities."

ETPI also pointed out that the PLDT group will effectively control six out of the existing seven international cable systems that carry outbound voice and data traffic, and four out of the current five cable landing stations where such undersea cable systems terminate on Philippine land.

"As a result, the PLDT combine will be in a position to discriminatorily price the capacities of its international cable landing stations and… restrict access to the landing stations or charge discriminatory prices for such access."

It added that the PLDT group’s dominance will also extend to a commanding control of Internet Exchanges and local Internet peering which is an arrangement of traffic exchanges between ISPs.

As a result of the transaction, ETPI said the PLDT group will have the largest Internet Exchange in the country in terms of membership and, with its command of very extensive telecommunications facilities, "will be in a position to restrict access to locally hosted content by deliberately disallowing traffic from competitors to pass through its network."

The mobile telecom row: For whose benefit again?

There appears to be an ongoing campaign on the merits of the P74.1-billion acquisition of JG Summit’s Digital Telecommunications Philippines, Inc. by the Philippine Long Distance Telephone Company.
Announced two months ago, the deal is currently being reviewed by National Telecommunications Commission, and is still subject to regulatory approval. Once consummated, the deal will effectively revive the duopolistic structure of the industry—with PLDT and Globe benefitting from reduced competition.

But both had been trading barbs since, with neither camp seemingly providing the full and accurate picture for appreciation of the widely speculating public.

“We are submitting the sales and purchase agreement to the NTC voluntarily to dispel malicious statements made by some parties that PLDT and Digitel have something to hide,” said PLDT.

Ayala-led Globe Telecom, the second-biggest player in the mobile industry next to PLDT-subsidiary Smart, moved to block the deal, citing the subsequent 70 percent commanding control in the wireless market would undermine the competition in the industry.

“If a single player controls 70 percent of the market, it will have so much clout, and that will kill competition,” claimed Globe.

“Globe wants to create the impression of an impending monopoly by PLDT, which is not the case. What Globe really wants is for the government to make up for their inefficiencies,” PLDT shot back.

Interestingly, the arguments coming from either camp are always laid on the pretext of enhancing consumer welfare.

“We see this transaction as having significant strategic benefits for our customers, the general public and the shareholders of both PLDT and Digitel. The investment will leverage the combined expertise of PLDT and Digitel to provide high quality and even more affordable services for fixed lines, wireless and broadband subscribers,” said PLDT.

In a position paper, Globe urged NTC to intervene by “implementing pre-emptive moves and regulations to protect the gains of Republic Act 7295, the fair and free competition in the market place and, ultimately, the public good and welfare.”

It’s as if the primary consideration of these business entities in proceeding (or blocking) the deal is for the benefit of the consuming public.

Is it?

Was it not only a couple of years ago when both Smart and Globe (earning billions for years prior to the entry of Sun Cellular) criticized and filed separate complaints to NTC, Sun Cellular’s “unlimited” and bucket-priced services? Only when NTC ruled in favor of Sun Cellular that both followed suit, making similar offers.

Sun Cellular did not drive them to oblivion, but it did eat away at their markets, and ultimately, at their bottom line. That bit of history rather makes PLDT’s and Globe’s current pronouncements of “enhanced consumer welfare”, suspect.

So far, we do know that the PLDT-Digitel deal is purely a business deal, aimed at protecting and strengthening their business interests in a mature industry with limited potential for growth.

Globe may just as well benefit from it, but will have to contend with tougher battles ahead, limiting its capability to expand its services.

But whether the public would benefit from the deal, how soon, and by how much – is yet to be established. Some say that price wars would become more intense, at least at the onset of the changed industry landscape. Others suppose otherwise.

Is it reasonable for the public to expect the costs of these telecommunications services to still go down? How affordable should they get? Aren’t they reasonable enough?

The fact that almost every Filipino man, woman, and yes, in some instances, even child, does own a cellular phone is a clear indication that mobile services are somewhat already “affordable.”

In fact, many of those belonging in the upper echelon of society own at least two or three mobile units. Traffic enforcers, bus and jeepney drivers, and many of our domestics texting while on the jobs are regular sights. Seldom would one find a public transport without at least one passenger busy chatting on his or her mobile device.

Some road accidents are even caused by the unnecessary use of such device. Perhaps the authorities would express the same interest in wanting to regulate mobile phone use, on the grounds of “guarding public welfare?”

Ultimately though and just like PLDT and Globe, the many faces of a rational Juan will only be interested in his own bottom line. What’s in it for me?

Regardless of the PLDT-Globe fray, Juan wants good services at inexpensive rates, if not free.

MICROCAPITAL BRIEF: Smart Communications, Microfinance Council of the Philippines to Extend Mobile Banking Services Through “Smart Money” Platform

Smart Communications Incorporated, a mobile service provider subsidiary of the Philippine Long Distance Telephone Company, has partnered with the Microfinance Council of the Philippines Incorporated (MCPI), a network of 45 microfinance institutions (MFIs), in an effort to expand the use of mobile banking services. By partnering with MCPI, Smart will be able to market its Smart Money platform to MFI clients, offering them remote access to banking and remittance services through mobile phones.

Tricia Dizon, Head of Smart Financial Services at Smart Communications, says, “This collaboration with the Microfinance Council of [sic] Philippines reinforces Smart’s commitment to provide affordable, accessible and relevant mobile solutions to Filipinos.” As of May 2011, Smart Communications had 45.6 million subscribers in the Philippines. This effort follows Smart’s previous establishment of Smart Money Centers and the Island Activation Program, two initiatives that focus on rural populations.

Audit on First Pacific pressed, 31 cities not yet interconnected

The National Telecommunications Commission (NTC) has been asked to “audit” the telecommunications and other government infrastructure concessions controlled by the First Pacific group in the country that may be used to restrict competition in the telco industry.

This was contained in a position paper filed by Eastern Telecommunications Philippines Inc. before the NTC. In an opposition letter against the planned acquisition by Philippine Long Distance Telephone Company of Digital Telecommunications Philippines Inc., Eastern said the NTC should impose conditions to ensure the prevention of “anti-competitive” behavior.

Eastern said that the NTC’s Competitive Policy stated that market share is widely considered as the most transparent indicator of dominance or significant market power.

It cited that, a market share of 40 percent gives rise to a presumption of significant market power while a market share of less than 25 percent is deemed insufficient for a player to behave as if it were unaffected by market forces.

Eastern said the transaction will result in the PLDT group having dominance and significant market power by virtue of its control over Smart Communications, Smart Broadband Inc., Connectivity Unlimited Resource Enterprise Inc., Digitel and Digitel Mobile Philippines Inc.

It noted that the group “will acquire a commanding 70 percent market share of the entire suite of telecommunications services currently being offered on the Philippine market.”

“Likewise of importance is the control of the PLDT combine, its related companies and affiliates of various other companies and facilities and government infrastructure concessions,” Eastern said.

It cited Manila Electric Company and its subsidiary, eMeralco Ventures, Inc. (which own and lease out significant fiber optic cables in areas where Meralco operates as well as telecommunications-related assets such as poles) and the Subic-Clark-Tarlac Expressway and North Luzon Expressway.

“Related companies and affiliates of the PLDT combine will, therefore, be in a position to restrict access by competitors of the PLDT combine to such telecommunications -related facilities,” Eastern said.

Eastern also pointed out that the PLDT group will effectively control six out of the existing seven international cable systems that carry outbound voice and data traffic, and four out of the current five cable landing stations where such undersea cable systems terminate on Philippine land.

“As a result, the PLDT combine will be in a position to discriminatorily price the capacities of its international cable landing stations and restrict access to the landing stations or charge discriminatory prices for such access,” Eastern said.

It added that the PLDT group’s dominance will also extend to a commanding control of Internet Exchanges and local Internet peering which is an arrangement of traffic exchanges between ISPs.

As a result of the transaction, Eastern said the PLDT group will have the largest Internet Exchange in the country in terms of membership and, with its command of very extensive telecommunications facilities, “will be in a position to restrict access to locally hosted content by deliberately disallowing traffic from competitors to pass through its network.”

Already, Globe Telecom has complained that its landline customers in 31 provinces and cities are still not interconnected to date, hence, they are still being charged long distance rates for calls made to a different operator although they are in the same area.

Globe Telecom said that its customers still cannot make local calls when connecting to Philippine Long Distance Telephone Co. (PLDT) landlines in Benguet, Pangasinan, Ilocos Norte, La Union, Isabela, Cagayan, Nueva Vizcaya, Quirino, Bulacan, Pampanga, Nueva Ecija (Cabanatuan), Zambales, Tarlac, Bataan, Quezon (Lucena), Laguna, Oriental Mindoro, Palawan, Marinduque, Albay, Camarines Sur (Naga), Camarines Norte (Daet), Zamboanga, Misamis Oriental, Davao del Sur, Davao del Norte, Davao Oriental, North Cotabato, South Cotabato (General Santos), Saranggani and Sultan Kudarat.

Despite laws mandating interconnection, PLDT "refuses" to interconnect in 31 localities, according to Globe. The carrier maintains it has been requesting PLDT for interconnection since 2006.

The NTC Memorandum Circular (MC) 09-09-2007 states that “there shall be no interconnection and access charges between interconnected LECs within a local calling area.” Interconnection is also mandated by Republic Act 7925 and Executive Order 59.

Without interconnection, a Globe customer calling a PLDT subscriber just next door or down the road has to pay NDD (national direct dialing) charges and vice versa.

The telco industry average for interconnection charge for a call made between provinces is around P3. Without interconnection, customers have to pay long distance charges of about P5 to P6 when calling a different operator’s landline although both calling parties are within the same area.

The carrier urged regulators to maintain a level playing field to safeguard healthy competition in the industry and to enforce the rules on interconnection to provide the service that the calling public deserves.

Meanwhile, Globe also asked (NTC) to put in place an official domestic IP peering policy to improve the quality of internet services and lower access costs in the country.

IP peering is similar to interconnection among local telcos for calls and texts, as it involves connecting subscribers and applications of one internet service provider (ISP) to another.

Without this policy, IP traffic takes longer to route as data is sometimes sent overseas before reaching its target destination. To customers, the experience is sluggish response times and lower service quality.

To ISPs, it is a waste of international capacity and resources when the transmission should be direct and not routed outwards especially when both the origin and destination are located in the Philippines.

The circuitous data routing also means added costs as the peering partner can charge a fee for transmitting the data. Globe said domestic IP peering can be free-of-charge as data need not be pushed out of country. It should ply and

'WiMAX' thief nabbed in Bulacan

Policemen have arrested a “WiMAX” thief during an entrapment operation in Barangay Poblacion last Friday.

Bulacan acting police director Senior Superintendent Fernando Mendez Jr. identified the suspect as Raffy Dodes Cadano, a resident of the said barangay.

Fernando said the Plaridel police station headed by Superintendent Albert Ocon conducted an entrapment after the suspect allegedly offered to sell a Globe WiMAX broadband device to a police intelligence operative.

Mendez said the wireless internet device that the suspect offered to sell will provide unlimited internet connection for a one time payment of only P500.

Mendez said that Cadano was arrested after handing the device to a police poseur buyer. He said police operatives seized the P500 marked money, 12 pieces of WiMAX antennae with cables and four Globe Imax model-echolife BM622.

The Bulacan police director also said that representatives from Globe Telecom Engr. Arnel M. Caballero and Globe security officer Ronald Uychutin has confirmed that the deal made by the suspect is illegal and can cause huge financial losses to their company.

The suspect is now detained at the Plaridel police station while appropriate charges are being readied for filing against him.

Mendez said the operation was in line with the directives of Central Luzon regional police director Chief Supt. Edgardo T. Ladao to all police provincial offices to intensify the campaign against all forms of criminality.

SMC unit weighs in on PLDT-Digitel deal

A TELECOM company affiliated with San Miguel Corp. (SMC) wants the Aquino administration to audit all existing telecom facilities as well as government infrastructure concessions controlled by the group of Manuel V. Pangilinan to prevent the return to a monopoly.

In an opposition paper filed on Thursday with the National Telecommunications Commission (NTC), Eastern Telecommunications Philippines Inc. (ETPI) said the related companies and affiliates of the Philippine Long Distance Telephone Co. (PLDT) combined will be in a position to "restrict access" by competitors of the group to such telecom-related facilities.

ETPI is 40 percent owned by Vega Telecom Inc., a unit of SMC. The remaining 37.7 percent is owned by the Ongpin family, while 22 percent isowned by the Africa family, which is partly claimed by the government.

ETPI said the PLDT group owns Manila Electric Co. (Meralco) and its subsidiary eMeralco Ventures Inc., which owns and leases out significant fiber optic cables in areas where the electricity distributor operates as well as telecom-related assets such as poles.

ETPI said Pangilinan-led Metro Pacific Investments Corp., through Metro Pacific Tollways Corp. (MPTC), hold state infrastructure concessions such as the Subic-Clark-Tarlac Expressway (SCTEx) and North Luzon Expressway.

State-run Bases Conversion and Development Authority (BCDA) is reviewing the 25-year contract of Manila North Tollways Corp. (MNTC) to operate and maintain the SCTEx. MNTC is a unit of MPTC.

ETPI likewise is opposing PLDT's acquisition of a 51.5 percent stake in Digital Telecommunications Philippines Inc. (Digitel), the operator of Sun Cellular.

ETPI said PLDT's acquisition of Digitel will result in a commanding 70 percent market share of the entire suite of telecommunications services offered in the Philippine market, ranging from cellular mobile communications to local exchange carrier services, inter-exchange carrier services, international gateway facilities, fixed and wireless broadband services and value-added services.

"With such dominance of the entire telecommunications services market, the PLDT combine will be in a position to discriminatorily price its services, subsidize under performing units/brands with the income of dominant units/brands and leverage its assets and command of the market in interconnection dispute so as to delay interconnection and/or hinder the launch of services of other players," ETPI said.

As a result of its Digitel acquisition, PLDT will effectively control six out of the existing seven international cable systems that carry outbound voice and data traffic and four out of the current five cable landing stations where such undersea cable systems terminate on Philippine soil, ETPI said.

"As a result, PLDT combine will be in a position to discriminatorily price the capacities of its international cable landing stations and, even assuming that other telecommunications companies have indefeasible rights of users in such international cable systems, restrict access to the landing stations or charge discriminatory prices such as access," ETPI said.

PLDT submits SPA Amid growing opposition to its Digitel acquisition, PLDT said it voluntarily submitted to the NTC on Thursday the sales and purchase agreement (SPA) dated March 29, 2011 covering its investment in Digitel.

Rival Globe Telecom Inc. and other telcos and consumer groups had been clamoring for transparency with regards the SPA.

"We are submitting the SPA to the NTC voluntarily to dispel malicious statements made by some parties that PLDT and Digitel have something to hide," Ray Espinosa, PLDT director and head for regulatory and policy affairs said.

"We have been very transparent about this transaction from the outset and have previously disclosed all material information about the transaction to the NTC, Securities and Exchange Commission and Philippine Stock Exchange in separate filings," he said.

Espinosa said the transaction is pro-consumer and will bring about substantial benefits to the general public.

"With this investment, Digitel customers and the public will be assured that Digitel will have the financial resources need to continue and sustain its popular unlimited services under the Sun Cellular brand. The PLDT Group is committed to support and continue these unlimited services," he said.

"Globe's vigorous opposition to the transaction reveals its dark objective -- to 'kill' Sun Cellular. Globe has been the hardest hit by Sun Cellular's popular unlimited services and has lost many subscribers to Sun Cellular. Sun Cellular has also outpaced Globe in terms of postpaid subscribers. Globe knows that with the PLDT investment Digitel will now have the much needed financial resources to sustain and continue the Sun Cellular unlimited services. This is what Globe dreads," Espinosa said.

Oppositors to PLDT-Digitel deal pile up

Oppositors to PLDT’s planned acquisition of telecom firm Digitel are increasing in number as industry player Eastern Telecommunications Philippines Inc. and party-list lawmaker Teddy Casino filed their opposition at the National Telecommunications Commission (NTC) on Wednesday.

Ayala-owned Globe Telecom, as well as consumer groups and third-party players have earlier manifested their opposition to the blockbuster agreement.

Eastern, through its legal counsel, said it is opposing the transaction since this would result in PLDT’s overwhelming dominance and significant market power which it may use “to commit acts that are detrimental to free competition and public interest”.



With the merger, Eastern said PLDT will control 70 percent of the entire telecom market, including mobile, landline, inter-carrier services, international gateway facilities, broadband, and value-added services.

“With such dominance, PLDT will be able to discriminatorily price its services, subsidize underperforming units with income of dominant brands, and leverage its assets and command of the market in interconnection disputes so as to delay or hinder interconnection,” the Makati-based firm said.

Eastern also pointed out that PLDT will also control six out seven international cable systems that carry outbound voice and data traffic, and four out of five cable landing stations.

“The dominance will extend to a commanding control of Internet Exchanges and local Internet peering. PLDT will be in a position to restrict access to locally hosted content by disallowing traffic from competitors to pass through its network,” the company added.

As for Casino, the lawmaker said PLDT’s buy-out of Digitel violates the anti-trust provisions of the Constitution.


Casino
“Obviously, a 70 percent market share results in tremendous market power for PLDT-Digitel, giving rise to a situation where they can dominate the market, dictate prices and influence the entire industry in their favor. This is precisely what happened in the past, when PLDT monopolized the telecommunications industry,” Casino said.

The party-list solon also said the deal is in direct violation of the congressional franchise granted to Digitel.

In section 16 of RA 9180, it is provided that Digitel “shall not lease, transfer, grant the usufruct of, sell nor assign this franchise, or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other corporation or entity nor shall the controlling interest of the grantee be transferred, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without prior approval of Congress.”

“Thus, the planned Digitel by PLDT — without prior approval of Congress — is not only a clear violation of the franchise given by the State to these entities but also a flagrant act to control the telecommunications market, virtually leaving the entire nation at the mercy of two telecommunications giants, PLDT and Globe Telecom,” Casino said.

He said the entry of Digitel, through Sun Cellurar, in 2002 proved that telecommunications service prices could still be lowered.

“In fact, Sun Cellular has been repeatedly blamed by Smart communications and Globe Telecom for unfairly running down the prices of’ ICT services. Gobbling up Digitel through this buy-out allows the remaining players to do away with the competition, giving them much more leeway in raising prices,” Casino said.

Toshiba Satellite E305-S1990

Manufacturer:Toshiba
Part Number:CNETtoshibasatellitee305s1990X
General
Width 13.5 in
Depth 9.1 in
Height 1.2 in
Weight4.7 lbs
Notebook typeThin-and-light (3-5 lbs.)
Processor
Processor Intel Core i5 2410M / 2.3 GHz
RAM
Installed Size 4 GB
Storage
Hard Drive 500 GB
Display
Display Type 14 in
Operating System / Software
OS Provided Microsoft Windows 7 Home Premium
Sustainability
Greenpeace policy rating (Oct 2010) 2.3

Wi-tribe inks deal with Symantec to provide safe solutions

Wi-tribe, a wireless broadband provider and part of the Qtel Group, has signed an MoU with Symantec Corporation, the global leader in providing information security, to provide safety software for consumers and businesses.

The agreement will initially focus on offering Symantec's award winning Norton Anti-Virus product to its user base in the Philippines, Pakistan and Jordan, and will soon be extended to include products such as cloud backup and parental control throughout the group.

Under the terms of the agreement, Wi-tribe will partner with Symantec to offer products that help secure and reduce the risk of information loss for consumers and businesses. Wi-tribe users will be able to download software direct from the Wi-tribe site that will enable them to protect precious data such as photos, music and important documents stored on their hard disk.

Commenting on the deal Sohail Qadri, CEO of Wi-tribe, said: "In an age where cybercrime is rife and fear of data loss is on the increase, the inclusion of tools like anti-virus and cloud backup are becoming necessities rather than luxuries. This deal enables Wi-tribe to protect our customers and offer them peace of mind when using the web for surfing or communication."

Norton anti-virus provides the following benefits to end-users:
- Protects your PC against the latest viruses, spyware, and other threats.
- Delivers fast, powerful online protection to keep you a step ahead of cyber attacks.
- Lets you chat, email and share files without worry.
- Updates automatically, offers easy-to-use features and includes free customer support during your subscription period.

Globe to PLDT: Follow AT&T lead

“More frequencies.”

That’s what Ernest Cu, president of Globe Telecom Inc., wants for his birthday on Friday.

As to how much, he said: “Just enough for us.”

At a briefing on Wednesday, where the company announced a 1-percent hike in profits in the first quarter to P2.99 billion, Globe officials said they are hoping that Philippine Long Distance Telephone Co. (PLDT) can give up some of its frequencies to level the playing field just like what AT&T in the United States is willing to do.

“The NTC [National Telecommunications Commission] should level the playing field, however that’s done. Just like what it did in early days of 3G. Concessions should be given,” Cu said.

According to Globe counsel Rodolfo Salalima, the US government is currently reviewing the proposed merger between AT&T and T-Mobile. But unlike PLDT and Digital Telecommunications Philippines Inc., the dominant AT&T, Salalima said, is willing to sacrifice and waive some of its “monopolistic powers” in “the interest of the public.”

Globe is pressing for the return of frequencies or the realignment of spectrum by the NTC. This is the hot debate now between the country’s largest phone company and the second largest operator. Regulators have set a public hearing for this on May 23.

In terms of absolute number of frequencies, PLDT has a 3.76:1 ratio in its favor. For 3G frequency alone, the ratio is 4.4:1 in favor of PLDT. Globe services 26.5 million subscribers.

“With the amount of frequencies allotted to us, we are practically serving 268,000 subscribers for every 1 Megahertz (MHz) of spectrum we have. PLDT/Smart/Digitel service only 161,000 subscribers for every 1 MHz of spectrum they have. So, we are not the inefficient network here,” Salalima said—an obvious response to PLDT’s allegation that Globe is the “most inefficient network.”

PLDT still needs to secure the green light from the NTC before the P69.2-billion share-swap deal with Digitel is deemed final, which is targeted to happen on or before June 30.

While PLDT revealed that Globe also placed a bid to buyout Digitel, Globe insisted that given the existing valuation, Globe “would not have offered the buyout price of PLDT and as such would not have been an attractive option for us.”

And even if Globe or its principal shareholders Singapore Telecommunications Ltd. had bought Digitel, Globe claimed PLDT would still be the dominant carrier and will have a bigger share of radio frequency.

“Bottomline, the imbalance created by a single entity controlling more than 84 percent of the total usable radio frequency spectrum resource is not conducive for a competitive industry because it will make it more costly and more expensive for competitors to compete effectively versus PLDT with Digitel,” said Salalima.

Better broadband connectivity with new Tattoo

THE year 2009 saw the introduction of mobile internet with Globe offering the Tattoo Internet Broadband stick as the product of choice for the edgy crowd. The tribal-inspired design drew the younger, tech savvy audience as seen in the explosive growth in the number of subscribers.

According to Nikki Acosta, Head of Broadband Business, Globe’s subscriber base had a 500 percent increase in subscriber base from 2009 up to 2010, indicating the rapid entry of mobile internet into the mainstream market. One of the key factors in the rapid growth of the sector is the introduction of 3G network capabilities which allowed greater data transfer speeds to be achieved.

To address the market’s growing demand for higher speed and better services, Globe rolled out its WiMax Network in 2009. A fourth-generation infrastructure, Wi-Max has a maximum theoretical throughput of 100Mbps for mobile internet services and 1Gbps for low mobility or local wireless access services. According to Globe, 4G-enabled devices will roll out by June, allowing consumers to experience higher internet speeds.

Due to the higher volume of data being transferred over Globe’s network, the company has implemented a Fair Use Policy to ensure reliability in the use of its internet services. With the fair use policy, network congestion is minimized with the use of data caps depending on the costumer’s subscription plan.

With all the key steps in place, Globe has relaunched its internet service with a variety of products and plans that aim to cover every costumer’s needs.

The familiar and basic Tattoo Sticks are still around, delivering the easiest and most affordable connection. But don’t let that fool you into thinking of slow uploading. This plug-in delivers a punch at speeds of up to 2 Mbps and even lets you send texts and make calls from your computer.

The Tattoo MyFi is perfect for groups of internet-loving friends with its Wi-Fi sharing capabilities. Either plug into your USB port like the Tattoo Stick or turn it on for instant wireless connection for up to five gadgets at up to 2 Mbps.

The most powerful among the three, the Tattoo SuperStick takes what the MyFi offers and juices it up with the fastest connection at up to 3 Mbps. Postpaid subscribers get something extra out of the deal with a monthly gift of 200 free texts.

Making all these possible is the Tattoo Broadband SIM, which is now available for purchase. This allows those old Tattoo sticks with disabled SIMs to be used again for a low price of 60 pesos.

For those that choose speed over mobility, Globe Tattoo offers three versatile plans that will leave you waiting for others to catch up. Known for its flexible plans, the Globe Tattoo @Home Broadband plans are no different, allowing you to choose from a myriad of speeds and affordable prices.

The Globe Tattoo WiMax delivers speeds of up to 1 Mbps at prices as low as 795 pesos a month.

For downloading, blogging, and gaming, turn to the Globe Tattoo DSL plans. The wired connection-based internet subscription plan gives you access to up to 3 Mbps of internet speed.

The newest plan to be offered to residents of Makati CBD and selected areas in the Fort is the Globe Tattoo Torque, which amps up your connection to up to 100 mbps of super speed internet via the use of fiber optic to home connections.

Brand new look, great new connections

IN ADDRESSING the youth’s hunger for freedom and individuality, Globe Telecom Inc. comes out with a dynamic image for its improved broadband services, as it introduces the bold new faces behind Globe Tattoo.
Underscoring freedom of expression through one’s personal style and identity, Globe Tattoo takes on a brand new look and point of view, of “being marked for greatness.”
“We want to influence the youth to be unique, to be who they are,” Dong Ronquillo, head of the company’s broadband and landline marketing, told the Inquirer in an interview during the launch at Ronac Art Center on Ortigas Avenue, Greenhills.
“They don’t need to be rich, famous, or a celebrity. They can be great in their own way,” he stated.
Joining its roster of brand ambassadors, a mix of diverse personalities who represent today’s bold and unique youth in the fields of art, music, sports, and blogging, is Saab Magalona, tagged as the “style royalty princess.”
With her noticeable fashion sense, Magalona, who belongs to show biz royalty, is making a name for herself through fashion and blogging alongside acting.
In showcasing the latest enhancement of its brand, services, and technology, Globe took local celebrities, artists, bloggers, and the media on a tour of its array of products that bring superior Internet connectivity.
Among Globe Tattoo’s services that have grown over the last two years are the Tattoo Sticks, prepaid plug-in Internet connection with a speed of 2 megabytes per second (mbps).
Keeping friends close is easy with Globe Tattoo’s MyFi, plug-in Internet that can turn into a connection for up to five different gadgets in an instant.
Monthly gift
Tattoo Supersticks takes what the MyFi offers, and juices it up with the fastest connection at up to 3 mbps. Postpaid subscribers get something extra out of the deal, with a monthly gift of 200 free texts.
For those who prioritize speed more than mobility, Globe offers a variety of Internet plans.
At just P795 a month, Globe Tattoo Wimax, which runs at 1 mbps, makes it easy to connect into the Internet.
With up to 3 mbps speed, Globe Tattoo DSL makes downloading and gaming a breeze. A newest addition to the pack, available for the Makati CBD and selected The Fort areas, Globe Tattoo Torque brags about its super speed that can rev up to 100 mbps.
Other brand ambassadors who graced the affair were Alodia Gosiengfiao, a new age artist who expresses herself through cosplay; Sarah Gaugler, a tattoo artist who is making a mark with needles, inking a steady stream of patrons; and Rico Mossesgeld, whose love for the written word and fascination with technology combined gave rise to his blog site.
Previously introduced endorsers were Rio de la Cruz, a runner and running coach to the stars, whose life has been a race from rags to riches; and General Luna, a group of girls (Alex Montemayor, Audry Dionisio, Bea Lao, Caren Mangaran, and Nicole Asensio), who literally rock the music scene.
Cosplayers were an added attraction to the event, along with the large doodle board where visitors, artists, and celebrities expressed themselves and what was on their minds.

Liberty eager 3rd telco player

Liberty Telecoms Holdings Inc. (LTHI), a joint venture between San Miguel Corp. (SMC) and Qatar Telecom (QTel), is raring to join the telecommunications fray as the third player, after a now-combined PLDT-Digitel and Globe Telecom, Chairman Ramon S. Ang told reporters the other day.

This year, LTHI is spending P1.72 billion to boost the number of its Metro Manila cell sites from 400 to 600 to have full coverage of the megapolis. The company, which hinges its business on mobile broadband, also targets to increase its subscribers from 48,000 to 96,000 by year-end. In 2010, LTHI spent P1.06 billion for its network and transmission equipment.

Broadband services now drive the growth of the country’s telecommunication market. Hence, LTHI is offering broadband services ranging from data communications, inter-exchange carrier services and other voice services to specific customer segments via its subsidiaries wi-tribe Telecoms (formerly Liberty Broadcasting Network) and Skyphone Logistics Inc.

Congress granted wi-tribe Telecoms with a franchise to provide various types of domestic and international communication services to the public good until 2014. Last year, the company had its soft launch and started providing fourth generation (4G) broadband services using WiMax (Worldwide Interoperability for Microwave Access) technology.

Significantly, LTHI does not feel threatened at all by the Philippine Long Distance Telephone Co. (PLDT)’s takeover of Digital Telecommunications Philippines Inc. (Digitel) although it will enable PLDT to have a 70% share in the local mobile phone market.

“We support the PLDT-Digitel deal. It will be good for the industry,” Ang declared. “My good friend, John Gokongwei (JG Summit Group Chairman) is getting a good deal. We are happy for him.”

At the moment, being in the fray seems to suffice for the telecom industry’s newest player. “We are not here to beat anybody. What’s important is we’ll be here to serve consumers,” was the LTHI Chairman’s parting shot.

Telcos told to resist 4G bandwagon

SMALL PLAYERS in the telecommunications industry are advised to offer different technologies to have bigger chances of capturing consumers, mobile chipmaker Qualcomm, Inc. yesterday said.
This comes as there is reportedly still room in the 3G or third generation technology market even as industry leaders have moved on to aggressively market the 4G variant, John Stefanac, Qualcomm president for South East Asia, said during a regional webcast, referring to various platforms that allow the exchange of larger data packets.

Mr. Stefanac said that operators should offer 2G, 3G and 4G technologies alongside each other, as this would further increase their subscriber base.

“Offering multi-mode access will be the key ingredient in driving their growth,” Mr. Stefanac said.

Mr. Stefanac said the firm expects the 1.2 billion 3G subscribers to triple in number by end-2014.

In the country, Liberty Telecoms Holdings, Inc., which is partly owned by diversified conglomerate San Miguel Corp., offers only a mobile broadband service.

The firm, whose unit Wi-Tribe Telecoms, Inc. launched its 4G broadband service in February 2010, widened its loss by 80% to P346.11 million in the first quarter from year-ago levels on the back of higher costs and expenses as the company began executing expansion plans.

The Philippine Long Distance Telephone Co. (PLDT), for its part, had said it expects an explosion in the demand for this mobile service.

PLDT, which injected P67 billion in capital expenditures for 2011 and for infrastructure support and upgrade, offers mobile and fixed telephone services, SMS (short messaging service), and mobile broadband in 3G and more recently, in 4G.

The firm cut profits by 6% to P10.734 billion in the first quarter from last year amid a slight fall in revenues.

Second to PLDT, Globe Telecom, Inc. has prioritized the improvement of broadband profitability, among others, for 2011, as shown in its presentation for its 2010 financial report.

As with PLDT, Globe also offers an array of services from text and voice services to mobile broadband services ranging from 3G and 4G.

Globe posted P2.991 billion in profits for the first quarter, a 1% increase from P2.947 billion it incurred in the same period last year.

Despite this trend favoring 4G, Mr. Stefanac said the country may still need to grow its 3G technologies before venturing to newer ones.

“There’s significant room to grow 3G in the Philippines, as well as in South East Asia, wherein penetration [of the technology] is still under 20%,” Mr. Stefanac said.

Mr. Stefanac said that operators should grow and allow 3G networks to develop first before looking at 4G technologies.

Smart launched its LTE in Boracay and plans to launch the service in other areas, the firm said in a previous statement.

LTE technology allows users to download and upload at a speed of 70mbps (megabits per second), upgradable to 100mbps.

Globe, on the other hand, said last month that it has deployed its 4G technology in areas across Metro Manila, with planned continued expansion across the country by next year.

HSPA+ provides users download and upload speed of 22mbps, upgradable to 84 mbps.

“It’s taken us years to take up 3G and it’s gonna take some time before the uptake of 4G,” Mr. Stefanac said.

The Philippines will be one of the markets wherein the use of mobile broadband and uptake in different technologies will be driven by Filipinos’ use of applications such as social networking sites, he added.

“The Philippines is another market we’ll see growth given the use of Facebook. We’ll see rapid growth [in the use of mobile broadband] that may even exceed the use of fixed broadband,” Mr. Stefanac said.

“We expect that in 2014, 75% of total broadband connections in the world will be through a mobile device,” Mr. Stefanac said.

Cisco supercharges home networking with new Linksys E-Series Wireless-N Routers

Cisco has unveiled a new line of Linksys E-series wireless-N routers, designed for consumers to take their home networking experience to the next level. The new, streamlined product lineup, consisting of Linksys E4200, E3000, E2000 and E1000, sets a new precedent for simplicity, power, and performance and makes it easy for consumers to find the right technology to fit their needs.

Featuring the flagship Linksys E4200 Maximum Performance Dual-Band Wireless-N Router, this best-in-class wireless home router is designed for optimum home theatre performance and works seamlessly with the latest entertainment devices, including Internet TVs, tablet mobile devices, game consoles, smart phones, e-readers, and VoIP devices.

This new router not only helps boost performance and range in the home, but also provides industry-leading speed of up to 450 Mbps for smooth streaming of video, music and uninterrupted gaming.

Building on a decade of leadership and innovation from Linksys, this latest avant-garde Linksys E4200 router features simultaneous dual-band wireless-N, four gigabit ports, and a 3x3 antenna configuration that help give it unparalleled speed and range.

Additionally, a combination of internal and external amplifiers coupled with six antennas help increase the signal strength across greater distances, providing improved home network coverage and reducing dead spots.

The Linksys E4200’s new USB feature makes it easy to add external storage to the network and since it is an UPnP media server as well, consumers can easily store, share and stream movies, music and games to other devices around the home.

The USB port also has the capability to convert into a virtual USB port** which will also enable printers to easily connect to the network so all users in the home can print wirelessly.

Apart from its advanced functionality, there is more than meets the eye to this maximum performance router.

Having recently won the red dot design award 2011, the Linksys E4200 features a next-generation industrial design that combines advanced functionality with sleek contours, making it an eye-catching device in any living room.

Cisco Connect Software: Simple Setup with Advanced Capabilities

With the addition of the new Cisco Connect software, the new Linksys E-series is designed to make it easier for users to customise and control their wireless network settings to match their preferences.

With a quick and easy setup, the software auto-assigns the WPA security passkey and SSID.

Once configured, users can use Cisco Connect to easily manage their wireless home network.

BT and Everything Everywhere trial 4G LTE

BROADBAND AND WIRELESS TELECOM OPERATORS British Telecom (BT) and Everything Everywhere (EE) have announced a joint trial of a fourth generation (4G) long term evolution (LTE) broadband network scheduled for later this year.
The trial of the high speed network will involve up to 100 mobile and 100 fixed line customers in Cornwall, or to be more specific St Newlyn, covering 25 square kilometres. The trial will begin in September and it will continue into early 2012.
An EE spokesperson said, "St Newlyn East was selected because it provides the right geography for this trial which is designed to test the viability of an alternative technology to deliver high speed broadband to customers in rural areas."
It is the first trial of 4G in the UK and will involve the two companies sharing their fixed telecommunications and mobile technology to provide high speed wireless broadband.
The 200 participants will incur no charge and engineers will install any necessary equipment including 4G dongles. Support will come from technology partners Nokia Siemens Networks and Huawei.
You can register your interest now on a dedicated website and an EE spokesperson said, "People will need to register their interest by 30 June and we'd expect to confirm whether they've met the criteria by 31st July."
Apparently an initial test at BT's labs in Suffolk has already started with the field trial in Cornwall aiming to test the actual speeds of 4G broadband in real life situations using two 10MHz channels in the 800MHz spectrum.
In theory 4G can reach download speeds of up to 100Mbit/s and we're expecting Ofcom to hold an auction for 4G spectrum in the first quarter of 2012.
We asked what kinds of speeds they aim to achieved and a spokesperson for EE told us, "The LTE speeds that can be delivered in rural areas is one of the key data points we expect to get from the trial." It also said, "We'd rather confirm the answer once the trial is underway and we have data that's based on trial results."

Liberty Telecoms allots $40m to expand broadband network

Liberty Telecoms Holdings Inc. is allocating $40 million, or roughly P1.7 billion, to expand its broadband network and double the subscriber base this year, a top official said Tuesday.

“We currently have 400 cell sites and we intend to establish at least 200 more cell sites in the city,” Liberty Telecoms chairman Ramon Ang said in the annual stockholders’ meeting Tuesday.

He said each cell site would require an investment of at least $200,000.

The company obtained a P1.1-billion short-term loan from a local bank to fund its working capital, capital expenditures and operational expenses.

Liberty Telecoms had drawn P500 million from the loan as of end-March, raising its liabilities by 29 percent to P2.45 billion.

Liberty Telecoms currently has over 48,000 subscribers. “We hope to get much more,” Ang said, adding that the target was to double its subscriber base by the end of the year.

He said Liberty Telecoms would stay with the current business model that offers purely mobile broadband. He added the decision to stay in Mega Manila and other key cities was part of the strategy in penetrating the telecommunications market.

Meanwhile, Ang said the acquisition of Digital Telecommunications Philippines Inc. by Philippine Long Distance Telephone Co. “is good for the both of them.”

He said despite the merger of two big companies, Liberty Telecoms was still determined to enter the market. “I think it is good for the consumers to have a third player. And we are that third player,” Ang said.

Telecom players warned vs tech update for the sake of update

Qualcomm Inc., the world leader in the development of CDMA (code division multiple access) and one of the primary enablers of 3G technology, is urging local telecom players to continue expanding their 3G services before offering the latest technology, Long-Term Evolution (LTE)

In a webcast briefing yesterday, John Stefanac of Qualcomm Southeast Asia & Pacific said 3G penetration in Southeast Asia stood at 20 percent, much lower than the 100 percent penetration in advanced countries.

Hence, there is still a significant room for growth that should be utilized before moving to LTE, he said.

The National Telecommunications Commission has awarded the 3G frequency in 2005 to four telecom operators, namely, Smart Communications Inc., Globe Globe Telecom Inc., Sun Cellular, and Connectivity Unlimited Resources Enterprise. The last 3G frequency remains unallocated.

Last month, Smart started testing the LTE technology, which offers up to 100 mbps internet speed. Globe Telecom plans to offer the LTE next year after the successful launch of its 4G network.

Telecom firms continue to allocate significant portions of their capex for the expansion of their 2G and 3G networks to address the expected high demand for broadband both in wireless and fixed lines.

Stefanac said the success of the LTE in the country would depend on full 3G deployment.

"We are seeing a lot of growth, from migration from 2G to 3G, in South Asia, including the Philippines," he added. "There’s still a lot of growth for 3G before going to LTE."

He said Qualcomm expects that the majority of broadband data services will be carried over to 3G mobile networks in 2014 and that further deployment and competition within the 3G market will increase broadband penetration.

Qualcomm is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA.

It offers products and services that include wireless airlink technologies, chipsets, consumers electronics and hardware, mobile content and services, licensing, and tools developers other advanced technologies.

World's first 'flicker-free' 3D TV launched in PH

LG Electronics Philippines recently unveiled 2 televisions that promise to enhance the viewing experience of Filipino couch potatoes.

One is the Cinema 3D TV, the first television that produces "flicker-free" pictures, according to European quality assurance agencies TUV and Intertek. It makes use of the Film Patterned Retarder (FPR) technology where a polarized film on the screen projects different images for the left and right eyes.

The FPR technology allows the use of cheap passive 3D glasses, the same ones used in movie theaters.

Older 3D televisions usually require bulky and battery-operated active shutter glasses that alternately darken over the eyes to create the illusion of a 3D image.

"It's more comfortable to the eyes. It uses lighter 3D glasses without battery," said LG Electronics Philippines managing director Seung Chul Lee during the launch on Monday (May 23).

LG Electronics Philippines product marketing head Cyd Montebon said, "The Cinema 3D TV offers brighter 3D pictures, flexible viewing positions and limitless 3D content."

The Cinema 3D TV can also convert 2D content to 3D pictures using a conversion algorithm. The 3D depth and viewpoint can be controlled to match the viewer's distance from the television screen.

The 3D televisions, which come in 42 and 47 inches, are priced at P99,990 and P134,990, respectively.

Montebon said the 55- and 65-inch models will be available in the Philippines in the coming months.

Internet TV

The other television launched by LG is the Smart TV which offers access to web content and applications.

LG Electronics Philippines has tied up with Lopez-owned Sky Cable Corp. so buyers of the new television can enjoy broadband speeds of 3 megabits per second (mbps) for 3 months.

They can also have access to Sky Cable's iWantv watch-on-demand service, and video content from abs-cbnNEWS.com.

Citing an online survey conducted by Universal McCann last year, Sky Cable marketing head Ray Montinola said 98% of the country's 4 million Internet users watch online videos, higher than the global average of 83%.

"We may not just be the texting capital of the world but also the online video watching capital of the world," Montinola said.

The Smart TV comes in different sizes and models which are priced between P59,990 and P129,990.

PLDT says Globe wants 'special privileges'

Though it claims to be asking for a “level playing field” by opposing Philippine Long Distance Telephone Co. investment in Digital Telecommunications Phils. (Digitel), Globe Telecom is actually engaged in a campaign to secure for itself “special privileges” from the government, according to a senior PLDT official.

“By raising the false issue of monopoly, Globe wants the government to give it radio frequencies for free – at the expense not only of PLDT but also other telecom players,” according Ray Espinosa, PLDT director and head of regulatory affairs and policy.

Espinosa was reacting to the opposition to PLDT’s investment in Digitel filed by Globe during a hearing of the National Telecommunications Commission (NTC) Monday.

Globe filed with the NTC a motion to intervene in the application for the sale and transfer to PLDT of an initial 51.55-percent equity in Digitel. The case refers to the joint application of PLDT and Digitel seeking regulatory approval for PLDT’s purchase of Digitel.

In its motions, Globe questioned the alleged lack of transparency of the PLDT-Digitel deal since to date, the transacting parties have yet to furnish industry stakeholders with a copy of their sale and purchase agreement.

“Plainly, without the actionable document, there is nothing to be approved. Too, evidence suppressed raises the strong presumption that said evidence is adverse to the suppressors,” Globe said.

Globe pointed out that in relation to their transaction, PLDT and Digitel have only submitted press releases that in very broad strokes, discuss purchase price and conversion of shares, bonds, and certain debt covenants. “However, no details are provided. As public utilities, PLDT and Digitel are imbued with public interest, and their transaction at hand should be subject to thorough scrutiny. Without the sale and purchase agreement, the public is kept in the dark, and begs the question, ‘What are PLDT and Digitel really up to?” it said.

In its formal motion to oppose, PLDT said that Globe asked the NTC to take 22 MHz of radio spectrum currently assigned to PLDT and Digitel and to reassign these frequencies to Globe.

“That is what all this noise is about. Globe’s opposition to the Digitel investment is not based on principle or out of concern for consumer interest. They want to hold hostage the Digitel deal so that they can get for free radio frequencies that PLDT and Digitel are already using to serve their customers. These frequencies are being used properly and efficiently to serve millions of subscribers,” Espinosa said.

To “level the playing field”, Globe seeks now to degrade the quality of services to millions of subscribers currently being served by PLDT and Digitel. Globe wants the government, through the NTC, to step in and fix Globe’s inefficiencies and thereby restore its competitiveness – which it lost by reason of its own inefficiencies and the superior services offered by its rivals. What Globe seeks therefore is contrary to well known principles of competition and free market.” Espinosa added.

He added this will undermine the objectives of the Digitel investment which include optimizing investments in new technologies like LTE or fourth generation mobile technology that will help bring broadband Internet services faster to more areas of the country, he said.

“Through this substantial investment in Digitel and through its accelerated capex program, PLDT is committing considerable resources in order to make good its pledge to bring better services to more Filipinos,” Espinosa said.

The motions filed by Globe urged the NTC to ensure a level industry playing field in the spirit of fair competition. Globe had previously written the NTC, warning that the consolidation of PLDT and Digitel is riddled with potential threats to industry sustainability and consumer welfare.

It said the NTC must pro-act to guarantee equitable distribution of spectrum, the lifeblood of cellular operators.

“As it stands for 3G resources alone, without government intervention, the PLDT-Digitel deal will already result in unfair proportioning of radio frequencies – 4.5 to one in their favor versus Globe. Threatened further by monopolistic tendencies to be exacerbated by more market power post-merger, industry must be guaranteed the enforcement of interconnection rules, mandated by law, but still elusive after all these years. Further, Globe urged anew development and implementation of policy for Internet Protocol (IP) peering, similar to traditional interconnection though now specific to the internet space,” it noted.

In another development, Sealand Telecommunications Co. Inc. is asking the NTC to impose stricter or heavier regulatory provisions on PLDT and Digitel,

In its comment to the acquisition of PLDT of a majority stake in Digitel, Sealand said imposing greater obligations on PLDT and Digitel as compared to those imposed on other carriers as a competitive policy will help protect the industry and consumers.

“PLDT’s acquisition of Digitel will create a public telecommunications entity which, despite PLDT’s avowed intent to keep operations separate, will effectively control a commanding 70-percent share of the telecommunications market, as compared to the mere 30 percent held by its nearest, not to mention only remaining, competitor,” Sealand said.

It added that, with its acquisition of Digitel, PLDT effectively adds Digitel’s 42.5 MHz of radio frequency spectrum to the 112.5 MHz that it already holds or controls, thus giving it a total of 155 MHz, which is 84 percent of the total usable radio frequency spectrum.

Because of this, Sealand said the acquisition would create an industry with imperfect market competition since PLDT-Digitel will have market power that can be exercised to the detriment of consumer welfare and overall industry performance.

It said imperfect competition gives rise to an market failure which can often result in a monopoly that can result in predatory pricing, low quality of calls (especially to other networks), slow innovation of technology and inefficient delivery of products and services, and other similar behavior that reduces consumer welfare.

Furthermore, by having an overwhelming market share of mobile subscribers, the new PLDT-Digitel entity will be able to dictate terms and conditions that can effectively restrain competition such as by increasing interconnection rates which would render other carriers incapable of offering competitive prices for their own services.

To prevent this, Sealand proposed that the NTC require PLDT-Digitel to: provide detailed performance monitoring reports to competitors and regulators regarding the performance of their networks and operational systems; negotiate with other carriers and under the supervision of the NTC, performance standards and enforcement mechanisms covering all major aspects of OSS operation and network performance; allow operator-to-operator operational systems (OSS) testing in response to competitor requests, with a further obligation of providing evidence to the NTC that OSS functions could meet demand for resold services and unbundled network elements; and offer interconnection, unbundled network elements and transport and termination services at rates based on reasonable and mutually-agreed upon forward-looking economic cost;

It also asked the NTC to require both companies to comply with such one-time conditions and on-going requirements that would curtail or minimize anti-competitive behavior as commission may impose; divest a portion of their assigned frequencies to be reallocated by the NTC; and divest some of their overlapping operations, products and/or services.

Liberty pursues expansion of broadband network

San Miguel Corp. (SMC)-led Liberty Telecom Holdings Inc. is ramping up spending this year to bolster its wireless broadband Internet network in Metro Manila in a bid to gain more market share.
At its annual shareholders’ meeting on Tuesday, the telecom sector’s newest entrant said it would continue laying down the foundation for its Internet services as it works on turning a profit in the next few years.
“We have 48,000 broadband subscribers now. We are targeting much more this year, hopefully double,” Liberty Telecom chairman Ramon S. Ang said.
The company, according to Ang, currently has 400 cell sites in Metro Manila and nearby areas. By the end of the year, he said another 200 would be installed to ensure full coverage in Metro Manila.
“We sell our services only in areas where our signal is strong,” the company said, noting that this would ensure that all of its users would be satisfied with its services.
Each site will cost around $200,000, for a total cost of $40 million.
To fund this, Ang said the company would raise as much as P3.6 billion in fresh funds through the issuance of new shares, which will be subscribed to by Liberty Telecom’s major shareholders, SMC and partner Qatar Telecom.
Ang, who sits as president and chief executive officer of Liberty Telecom parent SMC, said the company would focus on expanding its broadband business. The company offers home Internet plans using wireless interoperability microwave access (WiMAX) technology.
Ang earlier said the SMC group wanted its telecom business to compete in all areas of the industry such as voice and text messaging services, an area currently dominated by bigger players Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom.
Its expansion into other services, however, has been deferred due to delays in the government’s auction of new radio frequencies.
Speaking to reporters at the sidelines of the company’s annual meeting, Ang said he was confident Liberty Telecom would become a strong contender in the country’s competitive telecom sector.
“I think having a third player in the industry is good for consumers. We will become the third,” Ang said.

PLDT to introduces further foreign MVNOs

PLDT (Philippine Long Distance Telephone) is planning to introduce more MVNOs in other countries shortly.

The company’s subsidiary, PLDT Global is intending to hit the overseas Filipino worker market with MVNOs countries such as Macau, Taiwan, Guam, Malaysia, the US, and Saudi Arabia.

According to Alex Caeg, PLDT Global CEO and President, they are going to launch MVNO service in other countries very soon, especially in countries where the population of Filipinos are high.

The MVNOs will be operating under the “Smart 158″ brand. The company is also planning to increase the MVNO subscriber base in Hong Kong and Singapore by providing new products and services such as mobile remittance, broadband television, and reselling PLDT and Smart services.

HP releases dongle-less Wi-Fi mouse

When it comes to the computer, the mouse has become an essential piece of equipment, even when you are on the go. A wireless mouse allows you to do what you need to in order to get your work done. Keeping the doodad that allows your wireless mouse to connect to your system, known properly by the name dongle, can be a bit of a task. As it is with any small part that piece that dongle can be lost quite easily.

Many companies solve this problem by putting a spot onto the mouse where the dongle can be attached. Usually you will find them an opening in the side of the case or a groove on the bottom that nestles around the mouse. HP however has done away with the dongle altogether. They are creating a wireless signal mouse that does not have a dongle at all.

The mouse replaces the signal receiving dongle with the Wi-Fi connection that is already a part of your laptop. This is good news for two reasons, first because you do not have to remember the dongle and second, because you will have a free USB port once again. This is, of course, not the first mouse without a dongle attached to it. The Bluetooth mouse has been sans dongle for several years now, but this is the first one to run on a Wi-Fi connection.
The battery life for this mouse is stated to last up to nine months, which if it were true would give it a battery life that is twice that of the standard Bluetooth mouse. The mouse features five customizable buttons and a four-way scroll wheel with a thirty-foot range. The mouse, which will be on sale for $49.99 to the public, is expected to come to the stores near you in June.

PLDT sees increased OFW subscription for mobile services

The international sales and marketing arm of the Philippine Long Distance Telephone Co. (PLDT) expects to increase overseas Filipino worker (OFW) subscribers by 20 percent this year through the expansion of its Mobile Virtual Network Operation (MVNO) services in the Middle East, United States and Southeast Asia.

Alex O. Caeg, PLDT Global Corp. (PGC) president and chief executive, said, "We continue to expand our subscriber (base) using MVNO or branded partnership in countries where the population of Filipinos is (large)."

Caeg said that of 8.6 million Filipinos living overseas, 3.6 million are in America, 1 million in East Asia, 2.4 million in West Asia; 389,000 in Oceania,722,000 in Europe and 330,000 sea-based.

Caeg another way to increase subscribers is by tapping new markets within the current MVNO areas, including Indonesia, India and Thailand.

PLDT’s MVNO services are present in Hong Kong and Singapore through partnerships with leading mobile operator CSL and Mobile One, respectively. At present, they have a total of 100,000 MVNO subscribers.

Enrique Yu, PLDT Global head for carrier relations and sales management, said PLDT plans to increase its MVNO subscriber base in Hong Kong and Singapore by providing new products and services such as broadband television, new mobile remittance service and reselling of other PLDT and Smart products, among others.

A total of 169,000 Filipinos reside in Hong Kong and 163,000 in Singapore, spending about $190 per month on telecommunication services.

The average monthly telecom spending in Asia (excluding Japan), Europe and US amounts to $58, $160 and $190, respectively. The average number of calls to the Philippines per week in Asia and Europe is four times and two times, respectively.

The average remittance to the Philippines from these markets is P6,000 or 50 percent of the OFW’s income.

Last year, PLDT Global posted P3 billion in revenues and expected growth of 10 percent this year.

PLDT expands outside Phl

Philippine Long Distance Telephone Co. (PLDT), in its bid to expand its presence outside the Philippines, is entering into at least two more mobile virtual network operations (MVNOs) that will allow it to offer telecommunications and remittance services using the network of a foreign operator.

PLDT Global CEO Alex Caeg said negotiations are currently ongoing with mobile operators in Taiwan, Macau, Guam, Malaysia, the US and Saudi Arabia, but refused to disclose which deals will be closed within the year.

PLDT has existing MVNO arrangements in Hong Kong and Singapore, with a combined subscriber base of 100,000 overseas Filipinos.

PLDT Global, a wholly-owned subsidiary of PLDT, is the international sales and marketing arm of the PLDT Group. It aims to “own” the 8.6 million global Filipinos as its subscribers, by tailor-fitting PLDT products and services to cater to their needs.

In 2010, the PLDT subsidiary earned about P3 billion and aims to grow its top line by about 10 percent.

The top 15 countries in terms of Filipino population are the US, Saudi Arabia, Canada, United Arab Emirates, Australia, Qatar, Malaysia, Japan, United Kingdom, Hong Kong, Singapore, Kuwait, Taiwan, and South Korea which account for 83 percent of total.

Studies have shown that Filipinos abroad on the average spend about $58, $160, and $190 per month for telecommunications services in Asia, Europe and the US respectively, while on the average, they remit about 50 percent of their income to the Philippines.

The Philippines’ largest telco entered into its first MVNO in Hong Kong in 2009 and Smart Pinoy is now the biggest mobile service provider to Filipinos here. 1528 Smart Pinoy, PLDT Global’s MVNO operator in Hong Kong, is being offered using the network of Hong Kong’s CSL and offers the most affordable voice call and text messaging rates to the Philippines. 1528 Smart Pinoy now serves over 75,000 customers in Hong Kong.


Hong Kong was followed by another MVNO in Singapore (where over 163,000 Filipinos reside) in 2006 in partnership with Mobile One and then by Italy, but “market conditions” forced PLDT to pull out of Italy.

Caeg said PLDT Global’s strategy is to expand by entering into new MVNOs or branded partnerships in countries where the Filipino population is high. When going into MVNOs, PLDT invests about $2 to $3 million initially, while the profit is split between PLDT and the foreign operator.

“We also aim to increase our subscriber base by tapping new markets within current MVNO areas. For instance, we can tap the Indonesian market in Hong Kong. PLDT Global will also continue its product diversification and this will include broadband TV, new mobile remittance services, reselling other products, among others,” PLDT Hong Kong general manager John Palanca, for his part, revealed.

Some of the ethnic markets being eyed by PLDT Global are the Indonesians, Thais, Indians, to name a few. In Hong Kong alone, the Indonesians now number 185,000, compared to the 165,000 Filipino population.

Meanwhile, in Hong Kong, Filipinos have been benefiting from an innovative payments gateway for Philippine products and services through the Smart Pinoy Store, where they can buy or pay for healthcare plans, school tuition fees, insurance premiums, health check-ups and medical procedures through a prepaid system. The store also allows Filipinos to remit money and pay utility bills.

PLDT Global, through 1528 Smart Pinoy, has launched a mobile Internet service that enables global Filipinos in Hong Kong to instantly communicate and know the status of their family and friends in the Philippines via social networking sites.

It has likewise launched an innovative new service that puts two cellphone numbers inside a single SIM card. Called ‘Multiline,’ the service attaches a “virtual” Philippine cellphone number supplied by Smart Communications to a Smart Pinoy SIM which has a regular Hong Kong number. Cellphone users in the Philippines pay only local voice and SMS rates when calling the virtual Philippine number of the Smart Pinoy SIM. This also applies to the various bucket and unlimited text offers of Smart and Talk ‘N Text.