PLDT to start its segment of new high-speed Internet ‘highway’
Philippine Long Distance Telephone Co. is set to start construction of its segment of a new undersea high-speed Internet “highway” that will further improve connection speeds for its broadband users.
This is after the National Telecommunications Commission (NTC), in its en banc meeting last week, approved the company’s participation in the Asia Submarine-cable Express network.
“International submarine cables provide connectivity for international telecommunications traffic,” the NTC noted in its approval. The NTC said the “ASE will benefit the public by providing additional capacity and higher speeds” for PLDT’s users.
In January of this year, PLDT signed an agreement with telecom companies in Japan, Singapore and Malaysia to build a new fiber optic submarine cable in the Asia-Pacific region.
PLDT will be the landing party in the Philippines. The company’s initial partners overseas are affiliate NTT Communications from Japan, StarHub in Singapore and Telekom Malaysia in Malaysia.
The cable system will cost $304 million, with PLDT contributing $55 million, inclusive of a cable landing station in Daet, Camarines Norte.
The facility is expected to be completed by the third quarter of next year.
“The ASE submarine cable is expected to cater to the forecasted exponential growth in bandwidth requirements of the country for new and revolutionary broadband applications such as Internet protocol, video, data and other multimedia services,” PLDT said in its application.
The company said the facility would also improve the redundancy of its network for its existing submarine facilities, namely the Asia Pacific Network 2, Guam Pacific, Southeast Asia, Middle East and Western Europe cable systems.
The new system will connect Japan, the Philippines, Hong Kong, Malaysia, Singapore and potentially China, as well as other Southeast Asian countries.
PLDT is the country’s largest telecommunications company, serving more than 45 million subscribers as of the end of the first half.
Asia leads global broadband growth
Point Topic (point-topic.com), a UK-based company founded in 1998 whose mission is to provide focused information on broadband communications services, said Asia led global mobile broadband growth for the first quarter of 2011.
The report points out that the region enjoyed a 16.2 percent growth compared to the same period in 2010, bringing the total number of fixed broadband subscribers in Asia to 226.4 million by end March 2011.
There were 540.69 million broadband subscribers by end Q1 2011 globally. This was up 2.9 per cent on the previous quarter from 525.46 million and up almost 12 per cent year-on-year from 483.06 million.
South and East Asia and Western Europe control the majority of the DSL market. Between them they are home to over 221.57 million DSL subscribers, representing almost 65 per cent of the total.
South East Asia, which includes the Philippines, reported 122.8 million subscribers (almost 36 per cent) and Western Europe reported 98.76 million (almost 29 per cent).
Philippine Long Distance Telephone Co., and its subsidiary Smart Communication Inc. said their broadband offerings have driven the country’s internet growth.
Smart and PLDT are currently undergoing a massive network upgrade.
With P67.1 billion earmarked for updating and installing additional equipment such as cell sites, fiber optic cables, and international gateways, the telecoms conglomerate aims to provide only the best service to the Filipinos as its pursues its goal of providing quality Internet for all.
Recently, PLDT and Smart introduced to the market their latest broadband offering that will further increase the number of connected Filipinos.
Designed to make Filipino homes fully connected, HOME Plan 1299 combines an unlimited 1Mbps broadband Internet connection (Canopy or WiMax) and a landline phone.
HOME Plan 1299 will also come with a year’s worth of free PLDT-to-PLDT NDD calls.
"We’re very excited with the possibilities of HOME Plan 1299" said Kathryn Carag, head for home broadband.
"This shows that even our fixed broadband products are major driving forces in the growth of the industry."
Earlier this month, a series of speed tests by independent engineering firm NESIC, Philippines, Inc. (NPI) shows that Smart Bro subscribers are already benefitting from the improved network.
NESIC’s results revealed that Smart Bro bests the competition 100 percent of the time in terms of average download speed.
On the broadband front, wireless broadband revenues, inclusive of mobile Internet revenues, increased by 5 percent to P4 billion, compared with the P3.8 billion recorded in the first half of 2010.
Wireless broadband revenues now account for 7 percent of wireless service revenues. PLDT Group’s combined broadband subscribers grew 10 percent to 2.2 million subscriber, registered 200,000 net adds in the first half. Of the total, 1.5 million are Smart wireless broadband subscribers.
Smart claims faster mobile broadband speeds than Globe
Philippine mobile operator Smart Communications, a unit of PLDT, claims its mobile broadband service is faster than the service offered by rival Globe Telecom. Smart cites Nesic Philippines, an engineering service provider, which says that Smart Bro Plug-It offers faster connection speeds than Globe's Tattoo service, The Manila Times reports. The tests were conducted in 100 locations across the country in July using Speedtest.net and showed that there was an average difference of 0.74 Mbps between Smart Bro and Globe Tattoo, with 26 areas showing a difference of 1 Mbps or greater.
Smart Bro prepaid load now available via mobile banking
Broadband subscribers of wireless leader Smart Communications Inc. and its subsidiary Smart Broadband Inc. now have a more convenient way to buy load for their prepaid Smart Bro Plug-It, through Smart’s Mobile Banking Service (MBS).
Smart’s MBS offers bank customers the convenience of doing a wide range of bank transactions such as balance inquiry, fund transfer, bills payments, Smart Money Reloading, and prepaid reloading through their cellphone.
It is offered by the telco leader in partnership with the country’s biggest banks and bank networks.
Prepaid reloading via Smart’s MBS previously only offered load for Smart Buddy and Talk ‘N Text. With now over a million prepaid Smart Bro subscribers in the country, Smart has expanded its MBS by making Smart Bro load also available through the channel.
“We continue to have bright prospects for mobile banking in the Philippines. This MBS expansion strengthens our commitment to provide the relevant mobile infrastructure to our partner banks, while making the process of loading a lot easier for our broadband subscribers,” said Tricia Dizon, head of financial services at Smart.
The service is open to all Smart mobile subscribers whose current or savings account in BancNet members Allied Bank, Asia United Bank, Chinatrust, City State Savings Bank, Rizal Commercial Banking Corp., Security Bank, and Sterling Bank of Asia, as well as in BDO Unibank Inc. and Bank of the Philippine Islands is enrolled in MBS.
Those already previously using MBS via their Smart cellphone simply need to check if their menu has been updated by Smart, for free, over the air. Subscribers may also choose to manually update their MBS menu by sending MBUPDATE to 343 for only P2.50.
An updated menu follows the sequence 1) select Smart Menu; 2) select Smart Money; 3) select Mobile Banking; 4) select Reload Prepaid; then 5) select Smart Bro.
To purchase Smart Bro load via MBS, simply follow this sequence until the Smart Bro number, the chosen denomination, and the secure M-PIN are asked for.
Available denominations are P30, P60, P100, P200, P300, P500, and P1,000. Payment for the Smart Bro load will then be securely debited from the Smart subscriber’s savings or current bank account.
Smart subscribers who have yet to activate MBS on their cellphone may also visit www.smart.com.ph/money for the specific procedure required by their bank for mobile banking.
More information on the convenience offered by Smart’s MBS and other financial services are available at the same site.
Globe Tattoo holds Tatt Awards for social media netizens
As social media turns to be a powerful tool in this day and age, several netizens have risen as trendsetters in Facebook, Twitter and blog sites.
For the first time, Globe Tattoo held its first ever Tatt Awards at the Manila Peninsula Friday night to recognize those who have made a “remarkable impact” on the local social media landscape.
There were 10 categories with five finalists per category. The winners exemplified the Tattoo ideals of “a life without limits,” said Tattoo Head of Nomadic Broadband Dong Ronquillo.
Loi Reyes Landicho of professionalheckler.wordpress.com won the Wordslayer category for showcasing the mastery of words through witty blog entries.
For his videos that shook the Filipino online community, Mike Bustos of youtube.com/MikeyBustosVideos bagged the Video Slinger award.
Celebrity-host Bianca Gonzales of twitter.com/iamsuperbianca won the #Thought-Mover award for uniting people “around one thought in 140 characters or less” in the local Twitter scene.
For her excellence in photography “that caught fire in the local online art scene,” Jin Joson of jinjoson.com won the award of The Artiste.
Meanwhile, in recognition for “improving the state of a societal cause in the Philippines through social media,” Elizabeth Angsioco of dswp.org.ph won The Advocate award.
As a musical band “who fought hard to claim their space in the hearts of the Filipino audience,” the Indie rocker award went to Up Dharma Down of updharmadown.com.
Laureen Uy of breakmystyle.com won the Stylisimo award for setting trends in fashion.
For her thought-provoking posts “that spread like a virus and took a life of its own,” world-renowned singer and actress Lea Salonga bagged the Ball Breaker award.
Mark Macanas of techpinas.com won the Tech Junkie award for sharing the access to latest trends in technology.
Filipino Freethinkers of filipinofreethinkers.org brought home The One award for leading the pack in terms of online popularity and shaping opinion the local online community.
All winners received P100,000 cash and premium broadband products from Tattoo.
Special Awards were also given to Divine Lee of divinemlee.com as Tatt Trending Personality, Youtube sensations Arjohn Gilbert and Maria Aragon as Tatt Viral Rookie, Vice Ganda as Tatt Most Likeable based on his Facebook fan page.
The winners were determined through public voting and by the Tatt Council made up of veteran journalist Maria Ressa, Rock Ed Philippines founder Gang Badoy, blogger and entrepreneur Cecile Zamora-Van Straten, tech blogger and Tattoo ambassador Rico Mossesgeld, director and video blogger Kring Elenzano, radio DJ Chico Garcia, President of the Internet and Mobile Marketing Association of the Philippines Hans Roxas-Chua and Tattoo Head of Nomadic Broadband Dong Ronquillo.
With the Philippines named as social networking capital of the world in these changing times, Maria Ressa encouraged netizens to come together and push for progress.
“We should be at the forefront of the revolution we are leading,” she said.
“Every powerful tool can be used positively and negatively….[The] earlier we focus on the positive, the sooner we can have innovation,” Ressa also said.
Broadband access in emerging markets still pricey
Broadband prices in emerging markets such as India and Malaysia, despite falling from the previous year's levels, remain prohibitive to most people. This is stopping countries from tapping the technology to grow their economies, a report noted.
Released Monday, a study from research firm Ovum found that broadband prices are now cheaper than in 2010 in most of the countries surveyed. That said, majority of the population in emerging markets are still kept out from broadband access due to prohibitive prices and this is hindering economic growth, it stated.
"Demand for broadband services in emerging markets continue to be stifled by high prices," Richard Hurst, senior analyst at Ovum, said in a statement. "In some countries, broadband pricing was double or triple that of an equivalent service in a more developed market."
The study looked at broadband prices in 19 developing countries including Malaysia, the Philippines, India and Pakistan, Ovum stated.
Moreover, broadband access is limited to only the highest socio-economic strata in society because of the lower GDP per capita in most of these emerging markets, Hurst noted. For example, even though the Philippines recorded one of the lowest broadband prices out of the 19 markets, the study showed that many Filipinos still consider broadband to be unaffordable.
India, on the other hand, had the highest WiMax tariffs in Asia, Nicole McCormick, senior analyst at Ovum, revealed. High prices, coupled with low GDP per capita, mean that broadband services are "very unaffordable", she added in her e-mail.
"Despite the launch of 3G services by several Indian operators in 2011, HSPA (high speed packet access) services continued to be expensive, with the entry-level tariff priced at US$143 per year," the analyst said.
In terms of technology, Hurst said even though HSPA is the cheapest option for entry-level users with an average global price of US$223 per year, it also has a much lower data allowance. With that in mind, entry-level DSL packages offer the best value for emerging market consumers, Hurst suggested.
Cheaper broadband expected
Hurst went on to say that he expects tariff prices to fall slightly in the short-term as network operators and service providers reduce their prices and introduce packages to improve affordability and stimulate data usage. These measures are in a bid to attract more subscribers and drive revenue growth, he explained.
McCormick agreed, saying that prices will continue to spiral downward due to "increased competition and uptake of services".
She also expressed optimism that a positive cycle will emerge in that with lower broadband prices spurring adoption which, in turn, fuels economic growth, more people will soon be able to afford broadband access and increase their personal income, too.
Earlier, International Telecommunication Union (ITU) Secretary-General Hamadoun Toure called on Asian governments to not just drive national broadband deployment initiatives but also look to foster environments that encourage local content creation. These two components should be developed in tandem in order for "nation-level broadband projects to work", he stressed.
Tonino Lamborghini mulls suit vs Globe for intellectual property infringement
The Ayala-led Globe Telecom Inc.’s use of the “Tonino Lamborghini” brand to market its newest mobile broadband Internet sticks is a violation of international intellectual property laws.
In a statement on Wednesday, Tonino Lamborghini s.r.l. said it would take legal action to “protect the brand” against the unauthorized use of its name.
“Tonino Lamborghini wishes to inform its customers that unauthorized people are currently trading online and through Globe stores a ‘4G Tattoo Tonino Lamborghini’ broadband stick, which is a counterfeited product,” the company’s CEO Gian Lucca Filippi said in a statement.
The company “has never manufactured or authorized anyone to manufacture such a product, which constitutes therefore a serious trademark infringement,” Filippi said.
Tonino Lamborghini s.r.l., an Italian company that manufactures hand-made watches, is not to be confused with the similarly named Automobili Lamborghini, maker of exotic sports cars founded by tractor manufacturer Ferruccio Lamborghini in 1963. Tonino Lamborghini, named after its founder, was founded in 1981.
Both companies use the recognizable “Raging Bull” logo.
Globe Telecom vice-president for corporate communications Yoly Crisanto said the company would issue a statement, noting the issue was all a “misunderstanding.”
Globe earlier launched its Tattoo Tonino Lamborghini broadband stick, enabled with High-Speed Packet Access-plus, or HSPA+, mobile technology, as its fastest mobile Internet product to date.
The new broadband stick boasts of speeds of up to 10 megabytes per second, faster than most fixed-line home Internet connections. But these speeds are only possible in select areas in Metro Manila, where Globe’s HSPA+ network has coverage.
The marketing campaign, which tapped Filipino-Swiss formula car racer Marlon Stockinger as its endorser, aimed to take advantage of the Lamborghini name’s popularity for building fast automobiles.
But Filippi said using a car racer as an endorser in a marketing campaign named after a watchmaker was “deceitful and unlawful since it leads to a serious likelihood of confusion between two different and separate brands and businesses.”
“Tonino Lamborghini s.r.l. shall take any legal action to protect the brand,” Filippi said.
PHL has cheapest broadband among emerging countries —Report
First, the good news: The Philippines has the cheapest price for broadband access among 19 emerging countries surveyed by research firm Ovum. For the bad news: broadband still remains completely out of reach for the majority of the population.
In a newly released study, Australia-based Ovum said that consumers living in emerging markets are still paying far more for fixed and wireless broadband than their mature market counterparts.
The analyst firm studied broadband prices in emerging markets such as the Philippines, Malaysia, India and Pakistan, to see what has changed from its last look in 2010.
Ovum found that while prices in most markets fell compared to 2010, broadband continued to be beyond the reach of the vast majority of emerging market consumers.
“This lack of affordability is a major inhibitor to unlocking the growth potential in these markets," the analyst firm said.
Ovum senior analyst Richard Hurst commented: “Demand for broadband services in emerging markets continues to be stifled by high prices. In some countries, broadband pricing was double or triple the price of an equivalent service in a more developed market".
“In addition, lower GDP per capita in most emerging markets means that broadband is only available to the highest socioeconomic groups," Hurst added.
Ovum found that the Philippines, along with Malaysia, had the lowest broadband tariffs of the 19 countries in its sample. However, it noted that broadband is still unaffordable in the Philippines.
Earlier, a youth lawmaker has urged the national government to undertake the necessary steps to ensure universal access to the Internet in light of the United Nations report declaring Internet access as a basic human right.
Entry-level WiMax services in the Philippines cost as much as $223 per year (about P9,590) for wi-tribe’s entry-level WiMax. On the other hand, Globe’s entry-level HSPA service was the most affordable broadband tariff in the country, costing $1.28 (about P55) per 100 MB.
“In fact, the broadband services using HSPA technology were the cheapest option for entry-level users, with an average global price of $223 per year," Ovum observed.
The analyst firm noted that while this was far cheaper than entry-level broadband services based on DSL and WiMax technologies, HSPA packages had a much lower data allowance.
Overall, Ovum found that entry-level DSL packages offered the best value for emerging market consumers.
Hurst commented: “While prices remain high, we expect them to fall slightly in the short-term. Network operators and service providers will reduce their prices and introduce packages to improve affordability and stimulate data usage so they can attract more subscribers and drive revenue growth."
Boi Approves P5.6-B Solar Plant
The Board of Investments has granted limited income tax holiday to the P5.676 billion 30-megawatt solar power project of wholly-owned Filipino firm ATN Philippines Solar Energy Group Inc.
ATN, a joint venture of ATN Holdings Inc. and Transpacific Broadband Group International Inc., has proposed to sell electricity for P17.95 per kilowatthour. It would employ a total of 30 personnel when it starts commercial operation in December 2013. It is funded by 23.5 percent equity and 76.5 percent debt.
The project is under the Mandatory List of the Investment Priorities Plan and is entitled to incentives under the RE. Law or RA 9513. The firm is also registered with the Department of Energy as a new RE developer of solar energy resources.
In approving the project, however, the BoI said that once the feed-in-tariff (FIT) is in place, ATN should no longer be entitled to income tax holiday as the FIT is in itself the guaranteed return.
This decision is based on its general guidelines which provide that projects with sovereign guarantee or guaranteed rate of return are not entitled to income tax holiday.
However, the BoI Legal Department said that under the RE Act of 2008 (RE 9513), the firm is entitled to all incentives including the ITH. The law provides for a seven year ITH for RE projects. The BoI also noted a position forwarded that non-grant of ITH delivers a major impact on the proposed financial performance as the same is already considered when the proposed FIT was computed.
Given this conflicting positions, the BoI management committee has given instruction to communicate with the Department of Energy on all matters relative to the applicability/implication of FIT in the incentives granted to RE projects.
On the ATN’s proposed a selling price of electricity of P17.95 per kwh, the BoI said that such rate shall still be subject to ERC approval in compliance with the feed-in-tariff rules.
The FIT system is a scheme that involves the obligation on the part of electric power industry participants to source electricity from RE generators at a guaranteed fixed price applicable for a given period of time, which shall in no case be less than 12 years, to be determined by the Energy Regulatory Commission.
Based on its application, ATN will put the plant in the 324 hectare property of ATN Holdings in Montalban, Rodriguez Rizal, which is less than 10 kilometers away from densely populated business districts in Metro Manila.
The company said that its power supply during the peak hours would contribute in the reduction in capital cost of base load generating plants that use imported coal, and save the country’s foreign exchange capital and operating costs for power generating units.
ATN is targeting to serve Metro Manila, particularly the peak demand of mall in the high growth business districts in Quezon City.
It can also sell electricity directly to end users under the Wholesale Electricity Sport Market (WESM) set-up. It may also negotiate with the National Power Corp. as primary off-take customers that will distribute power through the Transco.
The company claimed that its 30-mw solar project is equivalent to 60 million kilowatthours of clean energy.(BCM)
AT&T and Broadband Growth
The announcement, earlier this year, that AT&T plans to acquire T-Mobile USA rightly has raised concerns. The most common question is whether the acquisition will reduce competition in the wireless market and, therefore, raise prices. In Maine, there are specific concerns about the future of the T-Mobile call center in Oakland.
These are the right questions to ask, and the Federal Communications Commission and Department of Justice must continue to focus on them.
As for competition, Maine currently has five major wireless providers in addition to a couple prepaid carriers. The acquisition is about ensuring consumers have access to the technology they need and want.
The growth in the wireless market is less about cellphone use for talking and more about the explosive demand for data. As more people use smartphones, tablet computers and increasingly sophisticated gaming systems, the demand for mobile broadband spectrum has exploded. Nearly half of AT&T’s customers have smartphones, which allow users to access the Internet, requiring more spectrum than phone conversations or texting.
AT&T’s mobile data traffic grew by 8,000 percent in the last four years. That growth is expected to continue.
T-Mobile owns a lot of spectrum, making it attractive to AT&T. Further, T-Mobile’s parent company, Deutsche Telekom, has said it wants to focus on building its capacity in Europe rather than in the United States. That’s why it put its American assets up for sale.
So, when concerns about decreased competition are raised, it must be remembered that T-Mobile won’t remain a separate company for long.
According to AT&T officials in Maine, the merger will allow the company to expand its reach in the state, with its coverage area growing to include Hancock, Washington and Waldo counties. This brings new competition to these areas.
“By combining their networks, the merged wireless companies have stated that they will be better able to provide high-speed broadband wireless capacity in rural states, including my home state of Maine,” Gov. Paul LePage wrote in a May letter to the chairman of the FCC supporting the merger. “This is an important issue to our business and citizens as they will benefit significantly from an expansion in access to the latest in wireless technology.”
Gov. LePage noted that expansions in telemedicine, educational opportunities through distance learning and business access to high-speed broadband will increase with the merger, which will speed the transition to faster wireless technology called 4G.
He also stressed the importance of the 800 jobs in Oakland and the call center’s central role in the business park there.
Owen Smith, regional vice president for AT&T Maine, said the company has no plans to close the Oakland call center. The nearest center is in Arkansas, making the Maine facility a needed East Coast presence, he said.
Concerns must be eased, but this deal appears a good one for Maine.
Fibre to support wireless web - Google
A fibre backbone is important to support the wireless networks that are developing in SA, Google has said.
"In South Africa, there will still be some growth for cable especially as we get more fibre down in the ground. I think we'll see it mainly in the business sector," Google SA head of mobile Brett St Clair told News24.
"It will be dependent on how quickly we can roll out LTE [mobile communication standard] which is 21 megs download speed," he added.
In South Africa, there is low penetration of cable broadband and as more people buy wireless devices, the fibre networks may be reduced to playing a supporting role for "last mile" internet connectivity.
In the rest of Africa, wireless would dominate web access, St Clair said.
Cost
"When it comes to the rest of Africa, forget it. It's going to be WiMAX [Worldwide Interoperability for Microwave Access]; Wi-Fi."
The cost of broadband has declined significantly in SA since the introduction of the international Seacom and Wacs (West Africa Cable System) fibre cables, and Google wants lower costs to allow more people to go online.
"You need those broadband cables for the fibre backbone, otherwise it just costs too much to push it over satellite.
"Bringing it down on cable reduces the cost; bringing down the cost of traffic along those cables - we do things like global caching. Certain of our products are cached locally, and that stops it from going back up Europe and saves some international broadband," St Clair said.
He criticised the South African networks, saying they're fragmented, and warned that as internet access became more universal, there would be an exponential growth in demand for services.
Data traffic to Europe has become cheaper than local traffic in SA.
"We've got all this data coming in on either end and what's unbelievable is that we're not linking Joburg to Cape Town correctly. It's really fragmented.
"To really deal all the volume that's coming in from our wireless networks; going out, we really need that fibre backbone."
Construction Of New Broadband Wireless System On Hold
Construction of a new broadband wireless system is temporarily on hold due to potential interference with GPS
New broadband wireless system could interfere with GPS
The US Federal Government vows to keep your GPS safe from a possible interference that could be caused by a new broadband wireless system, which is now under review by federal regulators.
This new broadband wireless system being developed by the company “LightSquared” would use satellites and relay transmitters on the ground to pass high speed Internet data. But government officials are concerned because an early design involved signals that could potentially block reception of those used for GPS. Blocking reception of GPS – the locating system used by consumers, aviation, agriculture, boaters and cellular 911 systems, among many others – could pose serious problems for those who rely on it.
Which is why construction of this new system is on hold as federal regulators wait for the risk of interference with GPS receivers to be eliminated.
"We're not going to do anything that creates problems for GPS safety and service," said FCC chairman, according to CNN.
But in a letter from this past May, numerous members of the US House of Representatives warned, “These new transmission stations will emit signals that are one billion times more powerful than satellite GPS. These ground-based signals will interfere with GPS usage and could render the technology useless in many areas of the country,” according to CNN.
This letter urged fellow lawmakers to ask the FCC to reconsider their decision of granting tentative approval to the project. Congressional lawmakers have demanded to know why they agency failed to realize the potential problem.
Get lucky with Rhian
There are more reasons to get hooked on PLDT myDSL. With the launch of its 5 Mbps speed upgrade on Plan 3000, subscribers can experience unlimited Internet to download, share and stream as much as you want. To make things even more exciting, PLDT myDSL has tied up with Sony to offer you the best way to enjoy your Internet to sawa experience.
Get ready as Rhian Ramos and the Watchpad Crew hit Sony TV retail stores in the latest PLDT myDSL Raid Upgrade on Aug. 13, 20 and 27. They will show you just how awesome your unlimited online entertainment experience at home can be with a Sony 3D Internet TV-PLDT myDSL bundle. Learn about the discounts of up to 15 percent on SRP and freebies you can get when you purchase a Sony Internet TV. You can also join the games in-store to win instant prizes. Exact locations of the Raid Upgrade will be posted on the PLDT Watchpad Facebook page.
Here’s the schedule and venues of the Raid Upgrade: Aug. 13 at the SM North Edsa (The Block and Main) and Sony Centre, Trinoma; Aug. 20, SM Megamall (SM Appliance and Sony Centre); and Aug. 27, Sony Centre, Festival Mall; Ansons, ATC Mall and Automatic Center, ATC Mall).
Be ready for a new and fun promo where you can win a free 5 Mbps myDSL Plan for five months, and the grand raffle prize of a Sony 3D Internet TV which is worth over P200,000. It comes with a PLDT myDSL WIFI modem, PLDT Telpad and other Sony accessories like two pairs of 3D eyeglasses, Sony VAIO laptops and more. To participate, visit the PLDT Watchpad Facebook page where three photos will be uploaded. “Vote” for your favorite photo between 12 noon to 2 p.m., and get a chance to win a DSL jacket via electronic raffle. From the photo with the most votes, one person will be chosen as winner of the 5Mbps speed upgrade.
There will be a new set of photos posted Mondays to Saturdays from July 30 to Aug. 27, which means there will be a total of 50 winners of a DSL jacket, 25 lucky winners of a free, five-month 5 Mbps PLDT myDSL Plan and more. The photos will also be shown daily on Eat, Bulaga! and the winning photo and winner will be announced after each promo day.
On Aug. 27, a grand raffle draw will award a Sony 3D Internet TV to one lucky participant of the Speed of Like promo. It includes participants who did not win the 5 Mbps Plan nor select any of the winning photos. For details, log on to www.facebook.com/PLDTWatchpad.
SA's broadband most expensive
Fixed and wireless broadband in SA is as much as 20 times more expensive when compared to offerings from providers in 18 other countries, which are also classified as emerging markets.
The prohibitive cost of broadband in SA is an aspect government has vowed to tackle for several years, yet a recent research report finds connectivity is out of reach for most South Africans.
Ovum's “Broadband Pricing in Emerging Markets in 2011” looked at HSPA, WiMax, and DSL broadband services in 19 countries in Asia, Eastern Europe, the Middle East and Africa, and South and Central America.
The report states SA has the most expensive broadband tariffs of the 19 countries it looked at. Some low-end entry level services cost as much as $1 443 a year, while costs for higher end services are as much as $6 000 a year.
Ovum adds consumers in emerging markets are still paying far more for broadband than their mature counterparts – putting it completely out of reach for most of them. The lack of affordability is a major inhibitor to unlocking the growth potential of these markets, the company says.
Emerging markets analyst Richard Hurst says: “Demand for broadband services in emerging markets continues to be stifled by high prices. In some countries, broadband pricing is double or triple the price of an equivalent service in a more developed market.”
Sky-high surfing
Telkom's entry-level DSL offering is 14.5 times more expensive, at $1 443 a year, than India, which offers the cheapest package at $99 a year, Ovum's report finds. Entry-level DSL in Nigeria is $1 211 a year.
The report says the affordability of entry-level DSL services varied significantly across the 19 countries in its sample, with SA ranked among those countries offering the least cost-effective services and the United Arab Emirates (UAE), Russia and Poland being the most affordable.
SA's fixed-line giant Telkom also has the highest price for its high-end DSL service, according to the report.
Telkom charges $6 048 a year, which is 20.5 times more expensive than the cheapest offering, provided by TP in Poland for $294 a year. Telkom's pricing is followed by Telecom Egypt, at $3 954 a year.
There were significant differences in the download speeds offered by operators. Etisalat in the UAE offered the highest speed, at 30Mbps, while SA offered a maximum of 4Mpbs. The slowest download speed was in the Philippines, at 2Mbps.
Ovum says the most expensive entry-level WiMax offering is from iBurst, at $1 443, which is 13 times more expensive than Pakistani operator Mobilink, which charges a yearly price of $107.
iBurst was also the most expensive provider for high-end WiMax services, coming in at $3 039 a year, compared with India's Tata, which offers the high-end offering at $2 847 a year.
However, SA had the cheapest low-end HSPA offering, at $41 per year, while the highest was in the UAE, where Du's entry-level HSPA tariff is $708 per year.
Ovum found there are no entry-level HSPA packages that offer an unlimited download allowance, with most capping the service between 100MB and 3GB.
For every 100MB
SA was also the most expensive country in terms of cost per 100MB, among Ovum's sample of emerging markets. “The country recorded a cost per 100MB of $2.41 for WiMax, $12.02 for DSL, and $35.18 for HSPA,” it says.
Local broadband services were the most expensive in the sample on a cost per 100MB basis. MTN's entry-level HSPA service cost $35.18 per 100MB of data, while its mid-level HSPA tariff cost $17.60, says Ovum.
Most entry-level WiMax service providers charge under $1 for 100MB of data. However, Ovum found SA is among the countries in which this cost is substantially higher, with every 100MB of data costing $2.41.
“The high prices in these countries were due to low or limited data usage capacity and the high cost of backhaul and transmission as a result of limited infrastructure,” says the report.
Entry-level DSL in SA also costs more than $1 for every 100MB, coming in at the highest cost of $12.02. Ovum says SA is only one of two countries to charge more than $1 for every 100MB, the other being Bahrain at $1.43.
Trends and Popularity of Web-connected Devices in Asia
The future of mobile Internet will be in Asia – this according to the latest statistics compiled by several market analysts, all of which see enormous potential for mobile web in developing Asian countries. For these developing nations, most of which are faced with low PC penetration to a rapidly growing population, the mobile web is the most affordable as well as the most accessible doorway to the Internet.
This trend towards mobile Internet connectivity is paving the way for another revolution of mobile devices in Asia, this time with more advanced web-connected devices like smartphones, tablets and netbooks. In China, for example, where the Internet market is still considered to be in its infancy, a whopping 227 million users are accessing the web through their mobile devices.
In a report from the Wireless Federation, the smartphone market in Asia will reach 200 million users by 2016, double that of the 100 million level in 2010 and growing at a compounding annual rate of 12 percent. This constitutes over 32 percent of mobile subscriptions in the region, which is expected to increase to 54 percent penetration levels by 2015, according to Abacus International. In a region where PC access is limited, web-connected devices are the great enabler – giving Internet access to people even while they are on the move.
Mobile Internet Trends in Asia
Smartphones and other web-connected devices are very popular everywhere else in the world, but with the special economic circumstances developing nations in Asia have, mobile Internet and the devices that let people gain access are now more popular than ever.
China – with over 457 million web users, this number has surpassed the entire population of the United States, which numbered 308 million at the end of 2010. According to the China Internet Network Information Center, 66.2 percent of these Chinese Internet users access the web through their mobile phones. Mobile Internet market value reached 6.44 billion RMB during the first quarter of 2011 according to ePathChina, registering a 23 percent growth rate from the previous year.
Thailand – Online stats company Turehits.net reported a 40 percent increase in Thailand’s mobile Internet usage. Apple’s iPhone is the most dominant device among the country’s four million active mobile web users, followed by Nokia, iPad and RIM’s BlackBerry. With declining smartphone prices, it is expected that these figures will continue to grow exponentially.
Indonesia – Since April of 2011, Indonesia has claimed the top spot among Southeast Asia’s mobile Internet users with a staggering 63 percent adoption rate from its total of five million Internet users, a 158 percent increase from the previous month. The popularity and increasing affordability of smartphone devices in the country has contributed largely to this tremendous growth, with these web-enabled devices used primarily for accessing information, business transactions and e-Commerce.
Philippines – Mobile Internet usage in this country is expected to reach 12 million mobile web users in 2011, up from the previous 8.8 million in 2010. This is evident due to the increased proliferation of affordable smartphones and unlimited data plan options available there, particularly to those who cannot afford laptops or personal computers. Aside from push e-mail, instant messaging, and a wide variety of downloadable apps, Filipinos use mobile web primarily to access social networking sites. A recent report from 24/7 Wall Street dubbed the Philippines as the Social Networking Capital of the World, with an incredibly high 95 percent social network penetration among web users.
India – The country boasts itself as the second largest mobile network in the world next to China, with over 771 million mobile subscribers registered. In a similar manner, mobile internet usage in the country is soaring in parallel, registering over 12.1 million active mobile web users in 2010 and is expected to hit 30 million users by the end of 2011. A study conducted by the Boston Consulting Group made predictions that India’s mobile web users will continue to grow and reach up to 237 million users by the year 2015.
Which Mobile Internet Devices are Most Popular among Asian Users?
In the recent Mobile Broadband Industry Survey in the Asia-Pacific, conducted by Ovum in partnership with Telecoms Asia, 50 percent of respondents indicated that mobile handsets will still be the major driver for mobile Internet in the region, while another 25 percent point to tablets as the main driver for mobile Internet growth. Tablets have overtaken laptops and netbooks in popularity due to their more mobile features and the tremendous availability of downloadable apps for a wide variety of purposes.
In the same survey, respondents tallied social networking as the highest activity for mobile Internet use at 31 percent, followed by video browsing and sharing at 30 percent and general mobile web browsing at 17 percent. This trend has shifted from the previous years, with web browsing and mobile video as the leading traffic drivers. This is attributed to the increasing popularity of mobile social networking services, and the affordability of mobile Internet subscriber plans that offer special rates such as the unlimited access to social networks offered by mobile operators in the Philippines.
The Asian youth is a significant factor for mobile Internet usage influence in Asia, with 56 percent of the world’s mobile phone-owning youths living in Asia. In China, 84 percent of Chinese Youth use mobile phones to access the web, next only to the 87 percent rate of Hong Kong, which also has the highest mobile phone ownership rate in the whole Asia-Pacific region. In India, less than 50 million youths have access to the Internet but experts forecasts this figure to reach 350 million mobile phoneowning youths by 2012.
Similar trends are being seen in other parts of Asia, such as in Japan where 60 percent of its youth access social networks through their mobile phones. While iPhone grabs the biggest share among smartphone users in Asian countries such as Malaysia, BlackBerry outsells Apple by a 12-to-1 ratio in Indonesia. In the Philippines, mobile operators are expecting that 70 percent of their revenues in 2012 will come from mobile Internet accessed through smartphones.
Mobile Internet Penetration among Asian Businesses
While the popularity of mobile Internet and web-connected devices in Asia is concentrated among individual users for commercial or personal usage, smartphones and mobile Web are slowly finding their hold on enterprise and corporate users in the region as well. Asian businesses adapting to the changing global markets are finding the deployment mobile or remote workers a necessity, and many find great use for smartphones and tablets for a wide variety of business applications.
Small and medium enterprises in Asia are leveraging this popularity of mobile web and web-enabled devices by developing e-Commerce sites that are specifically targeted towards mobile web users. SMEs can now go beyond the geographical limitations of traditional marketing and are using full online access to reach a bigger national or even international market reach. Many are investing marketing budgets on the development of advertising tools catering to mobile platforms and mobile ad networks.
Some are taking mobile web marketing a step further by developing business apps to gain an even better foothold among mobile phone users. According to Gartner, mobile apps that are intended for use on the iPhone, iPad and other similar devices will go beyond US$15 billion in revenues within the year 2011, exceeding the previous year’s revenues by over 190 percent.
This trend towards mobile Internet use enterprise is not unique to small and medium enterprises. Even large, multinational companies in the region coming from various industry niches and markets are moving toward mobile Internet channels for marketing and advertising. This includes major players in the retail, travel, hospitality, finance and pharmaceutical industries. One example is Otsuka Pharmaceutical Company in Japan, which recently purchased over 1,300 Apple iPads for deployment among its sales representatives to be used as tools for marketing. The company finds iPads effective for providing online medical information to doctors and medical purchasers quickly and effectively.
Future Trends for Mobile Internet in Asia
According to Ovum, an analyst firm which focuses on the mobile broadband market, mobile Internet users will reach one billion by the year 2015. This will account for at least 28 percent of total registered mobile broadband users. According to Ovum, the Asia-Pacific region will play a major part in this forecast and will actually dominate the mobile Internet market, growing from 119.1 million users in 2011 to a forecasted 518.4 million users by 2015. Aside from the high mobile-only penetration rate of 34 percent among Asian web users, this tremendous trend towards mobile Internet is being brought about by the lack of fixed-line broadband facilities in highly populated countries in the Asia-Pacific region. According to Ovum, fixed broadband will also grow in parallel with mobile broadband and large percentages of users are actually purchasing plans from both services at the same time.
As telecom companies in several Asia-Pacific countries are now poised to make next generation 3G mobile networks available to the public by 2012, coupled with new and very affordable offerings of web-enabled mobile phones, tablets and other gadgets, more and more people in these countries will soon experience a better and more exciting digital mobile web experience.
TelstraClear posts loss on Canterbury quakes, outsourcing
TelstraClear, the local subsidiary of Australia's Telstra, made a loss as the Canterbury earthquakes and costs of setting up a call-centre in the Philippines eroded earnings.
The Auckland-based unit made a loss of $5 million in the 12 months ended June 30 on an earnings before interest and tax basis, compared to a profit of $16 million a year earlier. Revenue increased 1.2 per cent to $701 million, while operating expenses rose 6 per cent to $568 million.
Telstra said the increased costs came from the restoration and recovery activity incurred by the Canterbury quakes, and the one-off labour, travel and training costs from shifting about 120 call-centre jobs in Christchurch and Paraparaumu to Manila last year.
It had previously bucked the outsourcing trend in 2007 when it brought IT support back in-house.
The New Zealand unit contributed a A$28 million EBIT loss to Telstra's group earnings of A$5.69 billion. Local sales of A$516 million made up 2.1 per cent of Telstra's A$24.98 billion group sales, which rose 0.7 per cent in the year.
Telstra's annual net profit fell 18 per cent to A$3.25 billion.
Telstra's shares, which are dual-listed, fell 2.3 per cent to $3.47 on the NZX.
Last month Telstra rejigged its group structure after agreeing to lease its fixed-line network to the Australian Federal government as part of the country's broadband infrastructure project.
Governments on both sides of the Tasman are looking to align their respective national broadband projects, with New Zealand undertaking a similar plan utilising dominant local player, Telecom.
Cyber cafes losing ground to home access in PH
With the cost of Internet access going down, a new survey conducted by Internet firm Yahoo and research firm Nielsen has revealed that a shift from shared to private access is fast shaping up in the country.
The Yahoo-commissioned 3rd Net Index study showed online browsing through Internet cafes declined from 71 percent to 66 percent, while home Internet increased from 31 percent to 35 percent over the past two years.
Jay Bautista, managing director for media at Nielsen Philippines, attributed the growth of the home-based access to these factors: decreasing broadband rates, bundled hardware offerings by telcos, and the “proficiency” for sharing, as well as the need for household members to acquire Internet access to connect with other family members abroad.
The survey also indicated that search (80 percent) plays a significant role in the overall engagement on the Internet as Filipinos go online for leisure and entertainment, particularly international music (68 percent), local music (65 percent) viewing photographs and videos (59 percent) and playing games (55 percent).
Social networking (82 percent) is at par with search and also popular among the Filipino youth.
The research also showed that 10–29 year old demographic remains the core audience group driving the Internet adoption in the Philippines.
The key findings of include four overarching themes:
Shift from shared to private access continues
Although majority of the Filipinos access the Web from Internet cafes, this trend is decelerating from 71 percent in 2009 to 66 percent in 2011, with private access at home becoming more popular, increasing from 27 percent to 35 percent over the same period
Mobile Internet which had grown from virtually zero in 2009 to 5 percent in 2010, has remained stable (4 percent)
Overall engagement on the Internet on the rise
Entertainment consumption is growing particularly international music (68 percent), local music (65 percent), viewing interesting videos or photos (59 percent) and playing online games (56 percent)
Mail (64 percent) and Messenger (69 percent) remain a relevant platform to connect and communicate
Social networking is at par with search
Social networking (82 percent) is at par with Search (80 percent) as the dominant internet activity
Social networking is not just an activity but is the starting point for online experience for many (39 percent)
Social networking users are becoming more selective and specific about choosing who they want to socialize with (59 percent)
E-commerce shows potential given consumer interest
The level of comprehension for group buying is moderate (32 percent), however, among those who understand the concept, almost half (48 percent) show interest, proving that e-commerce exhibits potential
Online transactions remain in its infancy stage of development given the the constraints around product authenticity and infrastructure however word of mouth is especially powerful in Philippines and can favor the concept of deal aggregation sites
MICROCAPITAL BRIEF: The Philippines Mobile Banking Market Handles $10b in Transactions
Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, reportedly has indicated that the number of mobile banking transactions in the country has reached an aggregate of 150 million, totaling PHP 440 billion (USD 10.4 billion) through December 2010. The Philippines was recently recognized by the GSM (Global System for Mobile Communications) Association, an association of 800 mobile operators and approximately 200 related companies, as “among the most advanced mobile money markets in the world.” Mobile banking is defined as “performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone.”
GSMA cited three contributing factors for the success of mobile banking in the Philippines: 1) the high SMS (short-message service, also known as text messaging) literacy rate of Filipino mobile users; 2) the involvement of BSP in supporting mobile banking, such as through BSP Circular 649, which established a regulatory framework for e-money and e-money issuers; and 3) actions taken by two of the country’s telecommunications companies – Smart Communications (SMART) and Globe Telecom.
In 2001, SMART partnered with Banco de Oroa, a Filipino commercial bank, to launch “SMART Money,” a service that enables users to transfer money both domestically and internationally via mobile and to pay for goods using a card. In 2004, Globe Telecom launched an SMS-based mobile wallet service called “GCASH” that offers functions similar to that of SMART Money via mobile phones. In 2010, Globe Telecom launched an automatic teller machine card linked to a mobile wallet, called “GCASH Card,” which gives its subscribers access to GCASH day and night.
FCC Votes to Free Up Wireless Backhaul Spectrum
The FCC voted unanimously Tuesday to free up more spectrum - up to 650 Mhz - for mobile wireless backhaul and make it easier and more cost effective for wireless companies to use point-to-point microwave links to deliver their service, particularly in rural areas.
It was another step in the FCC's push for broadband deployment and providing more spectrum for wireless broadband.
Among the changes were allowing for use of wider channels and smaller antennas, and allowing for sharing of spectrum for specialized services including cable TV relay and broadcast auxiliary services, with requisite protections for that sharing, said the FCC's wireless bureau.
Those protections are important to the cable industry. In its filing on the issue, the National Cable & Telecommunications Association said that it believed that wireless backhaul sharing was doable "provided existing cable CARS [cable television relay service] facilities are protected through rigorous adherence to a formal frequency coordination process."
FCC Chairman Julius Genachowski said when he was first briefed on the highly technical proposals in the National Broadband Plan, his eyes glazed over, but that he came to recognize it was one of the most important items, particularly for accelerating broadband buildout and reducing costs.
At the FCC's public meeting Tuesday, the chairman put in a plug for voluntary incentive auctions to free up more spectrum for wireless, but pointed out the microwave moves was removing "more needless restrictions on spectrum use."
He said wireless backhaul can be an important way to link cell sites or sites with backbone infrastructure, particularly in rural areas. He said there is a backhaul crunch as well as a consumer-facing crunch.
The chairman also gave a shout-out to the D.C. Circuit for denying a stay of its pole-attachment rule changes, which are also part of the effort to accelerate broadband.
He also said the move was lifting outdated restrictions on spectrum, furthering its regulatory reform goal. He said there was also an emergency communications element, saying this could help 911 calls get through in rural areas during severe weather.
The order also included seeking comment on other proposals to further ease wireless deployment.
Globe Telecom 1H net profit rises 9%
Globe Telecom, Inc.'s first-half net profit rose 9% to PHP5.49 billion from a year earlier on a sustained recovery in its cellular business and the addition of more broadband customers, it said Tuesday.
Net profit was PHP5.05 billion in the first half of 2010.
Consolidated service revenue improved 7% to PHP33.0 billion, from PHP30.7 billion, the Philippines' second-largest telecommunications company by sales said.
Net profit in the second quarter stood at PHP2.51 billion, up 19% from the year-earlier period but down 16% compared with that reported in the first quarter. Revenue in the quarter rose 7% to PHP16.55 billion.
"We are pleased to have delivered solid results in a very tough and intensely competitive environment. We are committed to building on this momentum into the second half of the year," Chief Executive Ernest Cu said in a statement.
Globe Telecom said it ended the half with 28.4 million mobile phone subscribers, up 15% from the same period a year ago. In the second quarter, the company had a net addition of 1.11 million cellular subscribers, the most for any quarter over the past three years.
Its broadband service attracted 113,000 new subscribers in the second quarter, pushing total subscribers at the end of June to 1.29 million. At the end of June last year, Globe Telecom had 930,000 broadband subscribers.
It said broadband revenue climbed 42% to PHP3.65 billion in the first half from PHP2.57 billion.
Globe Telecom said capital expenditure in the first half stood at PHP8.64 billion, down around 16% and less than half the planned PHP21.8 billion capital spending for 2011. It did not elaborate.
The company declared its second semi-annual cash dividend of PHP31 a share to stockholders on record Aug. 22. The cash dividend, which will be paid on Sept. 19, will bring Globe Telecom's total payment this year to PHP62 a share, or a total of PHP8.2 billion, around 84% of the company's 2010 net profit.
Globe profit up 19% as revenue hits record high
Ayala-led Globe Telecom said its profit grew by nearly a fifth in the second quarter of the year after revenues reached a record high during the period.
In a briefing, the company said its broadband Internet business, which was the fastest-growing segment of the company’s operations in the second quarter, was expected to continue boosting revenues for the rest of the year.
“Solid results were achieved in a competitive market that is expected to stay as such even with consolidation imminent among local players,” Globe president and CEO Ernest Cu said.
Globe’s net income rose 19 percent to P2.51 billion in April to June. This is the highest profit growth reported by Globe in the past several years, officials said.
Stripping out the effects of foreign exchange movements and investments, its core profit was up 9 percent to P2.61 billion.
Revenue reached an all-time high of P16.6 billion for the three-month period, surpassing the previous record of P16.5 billion, which was posted in the first quarter of the year. Globe bucked an industry-wide trend of declining revenues and profits arising from stiff competition and the near saturation of the Philippine telecom market.
Globe’s rival, Philippine Long Distance Telephone Co., recently reported a slight drop in profit and gross revenue.
PLDT, however, expects a return to profit growth by 2013.
It also said that the acquisition of Digitel Telecommunications Philippines Inc. was seen to have positive impact on the PLDT group’s earnings.
Globe ended the first half of the year with a net income of P5.5 billion, up 9 percent from a year ago. As of end June, the company has 28.4 million mobile phone subscribers, up by 15 percent from 24.6 million last year.
Mobile revenue, or earnings from traditional call and text messaging services, grew by 5 percent to P26.2 billion in the first half.
“Simply put, customers are spending more with us. As we know, most Filipinos carry multiple SIM cards. What we see is more customers using Globe than ever before,” Globe consumer business senior advisor Peter Bithos said.
Broadband subscribers increased to 1.3 million, up 39 percent year on year. This drove broadband revenue up 42 percent in the first half to P3.65 billion, or 11 percent of the company’s gross. Broadband revenue last year accounted for 8 percent of gross.
For the remainder of the year, the company said it plans to accelerate capital spending to increase network capacity to accommodate upsurge in network traffic due to the popularity of mobile Internet services.
“The company is allotting a significant portion of this year’s $500-million projected capex (capital expenditure) for the expansion and upgrading of mobile networks,” Globe said in a separate statement.
The company said it had spent P8.6 billion of its capital expenditure budget in the first semester of the year.
PLDT bucks IP peering, warns of slower connections
SUBSCRIBERS TO Philippine Long Distance Telephone Co.’s (PLDT) Internet service could be hit with slower connections if the telco is forced to comply with a regulator’s proposal to share network infrastructure with other telcos, the firm said in a statement yesterday.
“Compelling Internet service providers to connect via a single Internet exchange as proposed in the draft NTC (National Telecommunications Commission) order may create a bottleneck that could hamper rather than raise the service quality of Internet service providers,” PLDT said.
“This is a case where the proposed solution may just compound the problem,” Ramon R. Isberto, PLDT spokesman, said in the statement.
PLDT’s reiterated position came after Globe Telecom, Inc., San Miguel group’s broadband Internet brand Wi-tribe Telecoms, Inc., Bayan Telecommunications, Inc. and Eastern Telecommunications Philippines, Inc. all threw their support behind the state agency’s Internet protocol (IP) peering plan.
The NTC draft order, if passed, will require all telcos to direct domestic traffic through a local IP exchange that will be managed by the Department of Science and Technology and the Advance Science and Technology Institute.
The local interconnection is meant to lower domestic Internet rates for consumers, the NTC has said in its draft order.
Shares in PLDT fell 5% to P2,244 apiece yesterday. Mediaquest Holdings, Inc., a subsidiary of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessWorld.
Globe Reports P5.6-B Core Income
Sustaining growth in its mobile and broadband businesses, Globe Telecom, Inc. netted core earnings of P5.6 billion for the first half of 2011, up 8 percent versus the same period last year.
Its year-to-date consolidated service revenues reached P33.0 billion, 7% higher than the P30.7 billion registered last year.
Despite unrelenting competition, price pressures from the market’s continued shift towards value offers and the negative impact of the strong peso on US dollar-linked revenues, the carrier’s mobile business posted 5 percent growth, hauling in P26.2-billion revenues in the first semester versus last year’s P25.0 billion. Total mobile subscriber base stood at 28.4 million, up 15% from last year.
Overall, subscriber growth pushed the telco’s broadband revenues by 42% to 3.6 billion from P2.6 billion last year.
In line with the company’s dividend policy of distributing 75% to 90% of prior year’s net income, the Board of Directors declared the second semi-annual cash dividend of P31 per common share, payable on September 19, 2011 to shareholders on record as of August 22, 2011.
This brings total cash dividend payment this year to P62 per share or P8.2 billion which translates to about 84% of 2010 net income.
Consolidated EBITDA (earnings before interest, taxes depreciation and amortization) in the first semester stood at P18.0 billion, 6% higher than last year’s P17.0 billion.
Operating expenses and subsidy grew by 9% from P13.8 billion to about P15.0 billion with higher marketing and subsidy expenses for acquisition and retention programs as well as increased network costs and outsourced services in expanding its mobile and broadband networks.
Consolidated EBITDA margin remained steady at last year’s level of 55% with broadband and fixed line margins improving to 25% from 15% last year, compensating for the decline in mobile margins which fell to 62% from 65% in 2010.
Consolidated net income after tax increased by 9% year-on-year from P5.1 billion to P5.5 billion as revenue growth compensated for overall rise in operating expenses and subsidy, depreciation, and non-operating charges.
Excluding foreign exchange, mark-to-market gains and losses as well as non-recurring items, core net income posted an 8% growth from P5.2 billion last year to P5.6 billion this period.
Against last quarter, service revenues rose by 1% with both mobile and broadband revenues improving. Consolidated EBITDA was down 2% from P9.1 billion to P9.0 billion with the 3% rise in operating expenses and subsidy outpacing the 1% increase in service revenues.
News Digest: Airtel, NDS Group, DoT, Merinews, aMap, UID, Vuclip, GoI-BlackBerry
- Television audience measurement firm aMap, is reportedly shutting down its Indian operations. Read More at The Economic Times.
- NDS Group Ltd. has appointed Dave Habiger as Chief Executive Officer while Dr. Abe Peled, previously Chairman and CEO, will be serving the role of Executive Chairman. Read the Press Release
- The TRAI has recommended that the minimum download speeds for broadband internet connections should be 512Kbps. It will be increased to 2Mbps w.e.f 1st Jan 2015. Press Release
- Does the UID infringe on privacy? Business Standard
- Vuclip, the independent mobile video service, has launched in the Philippines with national carriers, Globe Telecom, Sun Cellular and Smart Communications through its local partner ThumbMOB Philippines. Press Release
- Department of Information Technology under it’s “Technology Development for Indian Languages (TDIL) Programme” has brought out CDs containing software tools for all the 22 constitutionally recognized Indian languages, and can also be downloaded free. Press Release
- Merinews.com, a participatory news portal has launched its Gurgaon Edition, to offer hyper-local news and infotainment. Press Release
- Airtel has appointed Anant Arora as CEO of the company’s B2C operations in Gujarat circle. He will report to Raghunath Mandava – Operations Director West. Via Press Release
- Kapil Sibal has emphasized on the adoption of scientific guidelines for penalizing the telecom service providers. The DoT and the industry will join hands frame guidelines that are rational, relevant and objective as the entire industry is under high cost burden. Via Press Release.
- The recommendations of the Justice Majithia Wage Boards are under consideration of the Government and a decision will be taken at the earliest. Press Release
- A parliamentary panel has expressed discontent over several extensions given by DoT to RIM which offers BlackBerry services in highly encrypted format without a satisfactory solution for interception. Read more at The Economic Times
- The Supreme Court has held that telecom operators will have to pay service tax on the sale of SIM cards as these transactions entail their processing and activation for providing cellphone services. Read more at The Economic Times
IEEE Completes 62-Mile, ‘Super Wi-Fi’ Wireless Broadband Standard
Making use of unused TV broadcast spectrum, so-called ‘TV white spaces,’ to deliver wireless broadband services took another step toward commercialization this past week as the Institute of Electrical and Electronic Engineers (IEEE) announced the completion of its 802.22 “Standard for Wireless Regional Area Networks in TV White Spaces.” Known also as ‘Super Wi-Fi,’ 802.22 has a 100-kilometer (62-mile) range, with base station coverage areas spanning 31,080 sq. km. (12,000 square miles).
The 802.22 standard is expected to spur broadband adoption, particularly in poorly covered rural areas, as well as provide last-mile broadband connectivity and help alleviate network congestion.
In development since 2004, 802.22 networks operate in VHF/UHF TV frequency ranges between 54 MHz and 698 MHz with a maximum data transmission rate as high as 22 Mbps per channel.
The ‘Super Wi-Fi’ standard’s “superb propagation characteristics” make it the best option for wireless distribution of multimedia content across local areas, according to advocates, enabling Wireless Internet Service Providers (WISPs), rural telecoms companies, community WiFi networks and others to distribute multimedia content wirelessly without interfering with broadcast TV channels.
A substantial amount of unused TV band spectrum exists in cities and communities across the US, they say. “Allocating the TV white spaces for unlicensed use will stimulate the development of innovative devices, enable more economical broadband deployment in rural and other underserved areas, and ensure the efficient utilization of unused ‘beach front’ spectrum below 1 GHz,” high tech industry supporters stated in a 2007 letter to the FCC.
In January, the FCC appointed nine TV bands database administrators to set up and manage the databases that will monitor, allocate and administer use of 802.22 frequencies so as to ensure they do not interfere with VHF and UHF TV channels and communications. These were Comsearch, Frequency Finder, Google, KB Enterprises and LS Telecom, Key Bridge Global, Neustar, Spectrum Bridge, Telecordia Technologies and WSdb. The FCC added Microsoft to the list last week.
Source: Clean Technica (http://s.tt/12ZfP)
The 802.22 standard is expected to spur broadband adoption, particularly in poorly covered rural areas, as well as provide last-mile broadband connectivity and help alleviate network congestion.
In development since 2004, 802.22 networks operate in VHF/UHF TV frequency ranges between 54 MHz and 698 MHz with a maximum data transmission rate as high as 22 Mbps per channel.
The ‘Super Wi-Fi’ standard’s “superb propagation characteristics” make it the best option for wireless distribution of multimedia content across local areas, according to advocates, enabling Wireless Internet Service Providers (WISPs), rural telecoms companies, community WiFi networks and others to distribute multimedia content wirelessly without interfering with broadcast TV channels.
A substantial amount of unused TV band spectrum exists in cities and communities across the US, they say. “Allocating the TV white spaces for unlicensed use will stimulate the development of innovative devices, enable more economical broadband deployment in rural and other underserved areas, and ensure the efficient utilization of unused ‘beach front’ spectrum below 1 GHz,” high tech industry supporters stated in a 2007 letter to the FCC.
In January, the FCC appointed nine TV bands database administrators to set up and manage the databases that will monitor, allocate and administer use of 802.22 frequencies so as to ensure they do not interfere with VHF and UHF TV channels and communications. These were Comsearch, Frequency Finder, Google, KB Enterprises and LS Telecom, Key Bridge Global, Neustar, Spectrum Bridge, Telecordia Technologies and WSdb. The FCC added Microsoft to the list last week.
Source: Clean Technica (http://s.tt/12ZfP)
Wireless high-fidelity, totally awesome
TDK, a Japanese company best known for producing data storage and high-fidelity recording media, has come out with a product that would put smiles on the faces of high-fi enthusiasts, the WR700 Headphone. Why so? Aside from its rugged looks, this device is wireless---no more wires to get you all entangled up and limit your movementfrom the sound source. The WR700 is a wireless headset employing Kleer technology as a means of transmitting sounds from its source to your ears.
So how does this gadget stand-out from among the dozen wireless receivers out there? The whole package is separated into two parts----the receiver, which is the headset, and the transmitter, which is plugged into your audio source, say for example, your laptop or desktop. As a power source, the whole set requires 4 AAA batteries which could provide enough juice for up to 40 hours listening time.
The WR700 maximum wireless distance is about 33ft depending on the battery charge. It is compatible with systems using the typical 3.55mm or the larger 6.33mm port.
If you’re wearing something in your head, it goes without saying that it should complement, not degrade your appearance, and this headphone is one fine set of accessory. One look at the TDK WR700 headset gives an impression of a straight-forward headset, complete with a solid frame, thus giving off a classy effect. The black cushions around the band and the earpiece is a good companion to the metallic frame.
It would be to no surprise if you garner some head turns while using this device. Aside from its looks, the WR700 is comfortable to use even on long hours. The foldable earpieces also provide decent noise isolation but they tend to get warm on the ears.
The transmitter on the other hand compliments the style of the headset but is somewhat awkwardly big when partnered with mobile MP3s or phones. Going about with this thing in your pocket is uncomfortable as it gives an awkward bulge.
On the other hand, using it with a laptop or a PC is fine unless you use it on an ultra-slim laptop which could pose a problem because the latter may be slimmer than the transmitter itself.
Again, the WR700 is powered with Kleer technology, which has is somewhat different from the typical Bluetooth sets in the market. Having no wires to deliver quality audio, wireless accessories tend to suffer in maintaining the integrity of the audio being transmitted, and this is what Kleer remedies. Kleer delivers high-quality sounds at lower power consumption compared to Bluetooth counterparts.
Also, it can tune several headsets in only one mother receiver instead of the typical 1-is-to-1.
The TDK WR700 makes it in my list of best headsets I had reviewed. However, I can’t help but frown at the large and bulky transmitter.
Despite having that clunky thing inside your pocket, TDK’s WR700 is a reliable headset capable of delivering top-class tunes even when no physical connection is present.
Now that’s what you call wireless high-fidelity!
So how does this gadget stand-out from among the dozen wireless receivers out there? The whole package is separated into two parts----the receiver, which is the headset, and the transmitter, which is plugged into your audio source, say for example, your laptop or desktop. As a power source, the whole set requires 4 AAA batteries which could provide enough juice for up to 40 hours listening time.
The WR700 maximum wireless distance is about 33ft depending on the battery charge. It is compatible with systems using the typical 3.55mm or the larger 6.33mm port.
If you’re wearing something in your head, it goes without saying that it should complement, not degrade your appearance, and this headphone is one fine set of accessory. One look at the TDK WR700 headset gives an impression of a straight-forward headset, complete with a solid frame, thus giving off a classy effect. The black cushions around the band and the earpiece is a good companion to the metallic frame.
It would be to no surprise if you garner some head turns while using this device. Aside from its looks, the WR700 is comfortable to use even on long hours. The foldable earpieces also provide decent noise isolation but they tend to get warm on the ears.
The transmitter on the other hand compliments the style of the headset but is somewhat awkwardly big when partnered with mobile MP3s or phones. Going about with this thing in your pocket is uncomfortable as it gives an awkward bulge.
On the other hand, using it with a laptop or a PC is fine unless you use it on an ultra-slim laptop which could pose a problem because the latter may be slimmer than the transmitter itself.
Again, the WR700 is powered with Kleer technology, which has is somewhat different from the typical Bluetooth sets in the market. Having no wires to deliver quality audio, wireless accessories tend to suffer in maintaining the integrity of the audio being transmitted, and this is what Kleer remedies. Kleer delivers high-quality sounds at lower power consumption compared to Bluetooth counterparts.
Also, it can tune several headsets in only one mother receiver instead of the typical 1-is-to-1.
The TDK WR700 makes it in my list of best headsets I had reviewed. However, I can’t help but frown at the large and bulky transmitter.
Despite having that clunky thing inside your pocket, TDK’s WR700 is a reliable headset capable of delivering top-class tunes even when no physical connection is present.
Now that’s what you call wireless high-fidelity!
Strike hits Verizon: 45,000 walk
About 45,000 unionized workers at telecommunications giant Verizon walked off the job Sunday after contract talks stalled over the weekend, the company and union leaders said.
Contracts with the Communication Workers of America and the International Brotherhood of Electrical Workers from Virginia to Massachusetts expired at midnight Saturday.
The walkout does not affect Verizon's wireless customers, and Verizon (VZ, Fortune 500) spokesman Peter Thonis said the company's phone lines were up and running Sunday with managers replacing the striking workers.
CWA spokesman Bob Master told CNN that some conversations were still going on, but he called the bargaining "the worst we've ever seen in 50 years." He said the company is demanding rollbacks of wages, benefits and union rules while posting profits of up to $6 billion.
"Verizon is not General Motors or Ford," Master said. "This is a company that has made billions upon billions of dollars. Because of the recession and anti-union climate, they have decided to try and drive down the middle-class standards of our members."
Telecom stocks have weathered better than other industries. Verizon's stock price this year has fallen 2.04%, less than the broader S&P 500's 4.63% drop. Competitor AT&T (T, Fortune 500) has slipped 1.53%. By comparison, stocks of GM and Ford dropped more than 28% and 35% respectively.
The CWA is the larger of the two unions on strike, representing more than 30,000 workers. Master accused Verizon of wanting to subcontract jobs to nonunion workers and outsource others "to places like Mexico and the Philippines."
Verizon said it needs workers to pick up a share of health benefits, which it says cost it $4 billion per year for 800,000 employees. It said its benefits would remain "near the top of those offered by comparable companies" even with the concessions demanded.
"It's regrettable for our employees and our customers that the Communications Workers of America and the International Brotherhood of Electrical Workers have decided to walk away from the table instead of continuing to work through the issues," Marc Reed, Verizon's executive vice-president of human resources, said in a written statement.
Thonis said customers should expect "no major impact" from the walkout. Repair calls may take longer, but "nothing detrimental," he said.
Contracts with the Communication Workers of America and the International Brotherhood of Electrical Workers from Virginia to Massachusetts expired at midnight Saturday.
The walkout does not affect Verizon's wireless customers, and Verizon (VZ, Fortune 500) spokesman Peter Thonis said the company's phone lines were up and running Sunday with managers replacing the striking workers.
CWA spokesman Bob Master told CNN that some conversations were still going on, but he called the bargaining "the worst we've ever seen in 50 years." He said the company is demanding rollbacks of wages, benefits and union rules while posting profits of up to $6 billion.
"Verizon is not General Motors or Ford," Master said. "This is a company that has made billions upon billions of dollars. Because of the recession and anti-union climate, they have decided to try and drive down the middle-class standards of our members."
Telecom stocks have weathered better than other industries. Verizon's stock price this year has fallen 2.04%, less than the broader S&P 500's 4.63% drop. Competitor AT&T (T, Fortune 500) has slipped 1.53%. By comparison, stocks of GM and Ford dropped more than 28% and 35% respectively.
The CWA is the larger of the two unions on strike, representing more than 30,000 workers. Master accused Verizon of wanting to subcontract jobs to nonunion workers and outsource others "to places like Mexico and the Philippines."
Verizon said it needs workers to pick up a share of health benefits, which it says cost it $4 billion per year for 800,000 employees. It said its benefits would remain "near the top of those offered by comparable companies" even with the concessions demanded.
"It's regrettable for our employees and our customers that the Communications Workers of America and the International Brotherhood of Electrical Workers have decided to walk away from the table instead of continuing to work through the issues," Marc Reed, Verizon's executive vice-president of human resources, said in a written statement.
Thonis said customers should expect "no major impact" from the walkout. Repair calls may take longer, but "nothing detrimental," he said.
Your best buy: Globe's Tattoo broadband stick
Netizens have new reason to rejoice because Tattoo, the top choice of Pinoy Internet users, has just made surfing more affordable and accessible than ever before.
The Globe-powered Tattoo has just upped the ante on its popular broadband stick, dropping the price to just P995 and packing it with 120 hours of surfing good for five days.
While other sticks give users just one paltry surfing day, with Tattoo they get five non-stop days of Internet browsing at speeds up to 2.0 Mbps.
And users can even call and text with their Tattoo stick, unlike others that limit users to just Internet use.
Dong Ronquillo, head of nomadic broadband business for Tattoo, says, “We will keep the surprises coming for our Tattoo customers. It’s already so easy to get Tattooed because it’s now the best-value prepaid broadband stick out there, with more free surfing days than you can get from other brands so you can browse the Net for hours on end. We will keep finding ways for you to do the things you love online, with Tattoo.”
Get a Tattoo stick today by visiting a Globe Store, calling (02) 730-1010 or visiting http://tattoo.globe.com.ph.
The Globe-powered Tattoo has just upped the ante on its popular broadband stick, dropping the price to just P995 and packing it with 120 hours of surfing good for five days.
While other sticks give users just one paltry surfing day, with Tattoo they get five non-stop days of Internet browsing at speeds up to 2.0 Mbps.
And users can even call and text with their Tattoo stick, unlike others that limit users to just Internet use.
Dong Ronquillo, head of nomadic broadband business for Tattoo, says, “We will keep the surprises coming for our Tattoo customers. It’s already so easy to get Tattooed because it’s now the best-value prepaid broadband stick out there, with more free surfing days than you can get from other brands so you can browse the Net for hours on end. We will keep finding ways for you to do the things you love online, with Tattoo.”
Get a Tattoo stick today by visiting a Globe Store, calling (02) 730-1010 or visiting http://tattoo.globe.com.ph.
See Internet Television on Own PC
Giovanni Soft has issued new application - See internet Television on own PC.
Access to 4000 Online TV stations from your computer.
Not required of a television tuner or decoder. Pure picture - no monthly payment necessary.
See television channels online from home. All you need is our IP TV software, your computer, and Internet connection.
Online TV is simply being able to watch a webcast in real time from anywhere across the world.
Many of us discovered online IP TV during this past presidential campaign while we were, as a nation, almost glued to some form of media in order to keep updated on the progress of the election.
Some of us were acquainted to online Ip TV because we found it was an excellent way not only to keep updated with the events, butmoreover weather, and sport news.
Whether you logged in from office to view BBC or another news streaming station`s livewebcast of a promotion event or you watched it on some other gadget such as your cellular phone or iPOD, you were able to keep on top of current news with the help of Live Internet television and online broadcasts.
Today, many companies are additionally using live Internet television and cameras or broadcasts to conduct business with workers in different parts of country and even employees in various parts of the globe. If you use it for own goals or company goal, internet television had become an central resource.
Live television events is used mostly for main stories and local news. The foreign bureaus have been cut back for some time now, and the main events networks are relying mostly on `stringers` for their foreign reporting.
Internet TV events is not a cash production product for television and is not expected to increase any moment soon. Revenue doing events, mainly in todays competitive and down market due to the economy.
One of the most convenient things about online ip television is that since you are watching it on your computer when a commercial comes around instead of having to sit through it you can just surf the web, which gets rid of the pain of advertisings.
No reason to purchase regular television for thousands of dollars when you can install television on home laptop? Internet television is the next big leap in online know-how.
Simply put, Internet television offers a consumer ability to playback his or her favorite programs and films without using buttons on the television remote control.
Look at the origins of Internet television.
With Internet Protocol Television you are able to view channels on quite a few systems like, your PC monitor, a Cell Phone, a notebook, or even with the properly installed device you can upload movies and entertainments to your standard television.
With last modern software, DSL or cable Internet connections and well constructed equipments, you can even watch television on your PDA.
Access to 4000 Online TV stations from your computer.
Not required of a television tuner or decoder. Pure picture - no monthly payment necessary.
See television channels online from home. All you need is our IP TV software, your computer, and Internet connection.
Online TV is simply being able to watch a webcast in real time from anywhere across the world.
Many of us discovered online IP TV during this past presidential campaign while we were, as a nation, almost glued to some form of media in order to keep updated on the progress of the election.
Some of us were acquainted to online Ip TV because we found it was an excellent way not only to keep updated with the events, butmoreover weather, and sport news.
Whether you logged in from office to view BBC or another news streaming station`s livewebcast of a promotion event or you watched it on some other gadget such as your cellular phone or iPOD, you were able to keep on top of current news with the help of Live Internet television and online broadcasts.
Today, many companies are additionally using live Internet television and cameras or broadcasts to conduct business with workers in different parts of country and even employees in various parts of the globe. If you use it for own goals or company goal, internet television had become an central resource.
Live television events is used mostly for main stories and local news. The foreign bureaus have been cut back for some time now, and the main events networks are relying mostly on `stringers` for their foreign reporting.
Internet TV events is not a cash production product for television and is not expected to increase any moment soon. Revenue doing events, mainly in todays competitive and down market due to the economy.
One of the most convenient things about online ip television is that since you are watching it on your computer when a commercial comes around instead of having to sit through it you can just surf the web, which gets rid of the pain of advertisings.
No reason to purchase regular television for thousands of dollars when you can install television on home laptop? Internet television is the next big leap in online know-how.
Simply put, Internet television offers a consumer ability to playback his or her favorite programs and films without using buttons on the television remote control.
Look at the origins of Internet television.
With Internet Protocol Television you are able to view channels on quite a few systems like, your PC monitor, a Cell Phone, a notebook, or even with the properly installed device you can upload movies and entertainments to your standard television.
With last modern software, DSL or cable Internet connections and well constructed equipments, you can even watch television on your PDA.
PLDT 1H profit falls on slowdown, strong peso
PHILIPPINE Long Distance Telephone Co. (PLDT) on Tuesday said its net income rose in the second quarter, but warned of weak sales in the short term because of a strong peso.
In a briefing, Napoleon Nazareno, PLDT president and chief executive, told reporters that its net income went up by 3 percent to P10.6 billion from P10.3 billion in the same three-month period last year.
Despite the second-quarter increase, the telco's profit was still down 2 percent to P21.3 billion in the first six months of the year, from P21.7 billion last year.
Its core profit, which excludes foreign exchange gains or losses and other non-recurring income, also fell 3 percent to P10.5 billion in the second quarter from P10.7 billion last year. The first-half core net income also was down by a percent to P21.02 billion.
Partly owned by Hong Kong's First Pacific Co. Ltd. and Japan's NTT group, PLDT said consolidated service revenues fell 3 percent to P35.07 billion in the second quarter from P36.15 billion last year.
First-half service revenues also went down by 3 percent to P69.64 billion from P72.16 billion in 2010.
Nazareno blamed the decline on slower economic activity, a strong peso and the intense competition in the industry.
He said the peso appreciation translated to a P900 million lesion in revenues.
Had the peso remained stable, the decline in service revenues year-on-year would have been 2 percent, he said.
About 26 percent of consolidated revenues are directly or indirectly linked to the US dollar.
In the first half of the year, the peso averaged 43.36 against the US dollar, stronger than the 46.42 in the same period last year.
"We expect revenues to remain under pressure for the near term," Nazareno said.
"Nonetheless, we are confident that with our cost discipline and focus on innovation, we will continue to produce value for our customers and shareholders," he added.
Wireless service revenues fell 4 percent to P45.7 billion in the first semester compared with the P47.9 billion in the same period last year.
Cellular voice revenues declined 7 percent to P19.9 billion, while cellular data/text revenues dropped 2 percent to P20.6 billion.
At end-June, the PLDT group's total cellular subscriber base stood at 47.8 million, up 5 percent, or 2.2 million from the end of last year.
Mobile unit Smart Communications Inc. recorded net additions of 0.8 million subscribers to end with 26.5 million in the first semester, while Talk 'N Text added about 800,000 to end with 19.8 million subscribers during the same period. Red Mobile had about 1.5 million subscribers.
Smart wireless broadband subscribers stood at 1.5 million.
Wireless broadband revenues, inclusive of mobile Internet revenues, increased by 5 percent to P4 billion, compared with the P3.8 billion in the first half of last year.
While the company had anticipated the softening of its income position from a year-on-year perspective, Manuel Pangilinan, PLDT chairman said the improvement in its first half results was "encouraging." Pangilinan said PLDT is maintaining its profit guidance of P40.5 billion for this year and 2012, higher by 2 percent than the P42.05 billion core profit in 2010.
Service revenues are projected to decline by 4 percent this year from the P142.2 billion in 2010.
PLDT shares fell to P2,398 each on Tuesday from P2,400 the day before.
In a briefing, Napoleon Nazareno, PLDT president and chief executive, told reporters that its net income went up by 3 percent to P10.6 billion from P10.3 billion in the same three-month period last year.
Despite the second-quarter increase, the telco's profit was still down 2 percent to P21.3 billion in the first six months of the year, from P21.7 billion last year.
Its core profit, which excludes foreign exchange gains or losses and other non-recurring income, also fell 3 percent to P10.5 billion in the second quarter from P10.7 billion last year. The first-half core net income also was down by a percent to P21.02 billion.
Partly owned by Hong Kong's First Pacific Co. Ltd. and Japan's NTT group, PLDT said consolidated service revenues fell 3 percent to P35.07 billion in the second quarter from P36.15 billion last year.
First-half service revenues also went down by 3 percent to P69.64 billion from P72.16 billion in 2010.
Nazareno blamed the decline on slower economic activity, a strong peso and the intense competition in the industry.
He said the peso appreciation translated to a P900 million lesion in revenues.
Had the peso remained stable, the decline in service revenues year-on-year would have been 2 percent, he said.
About 26 percent of consolidated revenues are directly or indirectly linked to the US dollar.
In the first half of the year, the peso averaged 43.36 against the US dollar, stronger than the 46.42 in the same period last year.
"We expect revenues to remain under pressure for the near term," Nazareno said.
"Nonetheless, we are confident that with our cost discipline and focus on innovation, we will continue to produce value for our customers and shareholders," he added.
Wireless service revenues fell 4 percent to P45.7 billion in the first semester compared with the P47.9 billion in the same period last year.
Cellular voice revenues declined 7 percent to P19.9 billion, while cellular data/text revenues dropped 2 percent to P20.6 billion.
At end-June, the PLDT group's total cellular subscriber base stood at 47.8 million, up 5 percent, or 2.2 million from the end of last year.
Mobile unit Smart Communications Inc. recorded net additions of 0.8 million subscribers to end with 26.5 million in the first semester, while Talk 'N Text added about 800,000 to end with 19.8 million subscribers during the same period. Red Mobile had about 1.5 million subscribers.
Smart wireless broadband subscribers stood at 1.5 million.
Wireless broadband revenues, inclusive of mobile Internet revenues, increased by 5 percent to P4 billion, compared with the P3.8 billion in the first half of last year.
While the company had anticipated the softening of its income position from a year-on-year perspective, Manuel Pangilinan, PLDT chairman said the improvement in its first half results was "encouraging." Pangilinan said PLDT is maintaining its profit guidance of P40.5 billion for this year and 2012, higher by 2 percent than the P42.05 billion core profit in 2010.
Service revenues are projected to decline by 4 percent this year from the P142.2 billion in 2010.
PLDT shares fell to P2,398 each on Tuesday from P2,400 the day before.
PLDT and Smart broadband network investment paying off
Speed tests conducted by independent professional engineering service provider NESIC Philippines, Inc. (NPI) show that the Smart Bro Plug-It has faster connection speeds compared to the competition.
The tests which were conducted in 100 locations around the country revealed that Smart Bro outperformed the competition 100% of the time in terms of average download speeds. According to NESIC’s results, there is an average difference of 0.74Mbps between Smart Bro and its rival with 26 areas reflecting a 1Mbps discrepancy or greater.
Meanwhile in terms of peak speed, Smart Bro also beat the competition 99% of the time with an average difference of 1Mbps.
“Peak speed” refers to the absolute fastest speed while “average speed” takes all results into account.
“Our subscribers are now enjoying the benefits of our improved network,” said PLDT and Smart Technology Group Head Rolando G. Peña. “The numbers tell the story.”
Comprehensive upgrades
Earlier this year Smart and its parent company the Philippine Long Distance Telephone Co. (PLDT) began a new round of network upgrades. A total of P67 billion has been earmarked to update and install network elements wireless base stations, fiber optic cables, and international gateways to further improve quality of service across all fronts.
“It’s easy to say that you have the fastest devices and the fastest wireless connection speeds, but if you don’t have a solid infrastructure working in the background, you can’t deliver quality service to your subscribers” added Peña.
To date, PLDT and Smart have a total of 42,000kms of fiber optic cables arranged in loops with an additional 3,000kms of cabling set to be installed before end 2011. A “looped” configuration makes a network more resilient as it offers alternative means of transmitting data even when primary line of communication have been severed.
Nationwidest coverage
With thousands of cell sites located across Luzon, Visayas, and Mindanao, Smart boasts of the nationwidest coverage in the country. Its HSPA and HSPA+ services are available in major cities and municipalities in the Philippines.
Smart is also pioneering the fastest 4G technology in the Philippines with the introduction of LTE (long term evolution) technology called Smart Evolution.
The tests which were conducted in 100 locations around the country revealed that Smart Bro outperformed the competition 100% of the time in terms of average download speeds. According to NESIC’s results, there is an average difference of 0.74Mbps between Smart Bro and its rival with 26 areas reflecting a 1Mbps discrepancy or greater.
Meanwhile in terms of peak speed, Smart Bro also beat the competition 99% of the time with an average difference of 1Mbps.
“Peak speed” refers to the absolute fastest speed while “average speed” takes all results into account.
“Our subscribers are now enjoying the benefits of our improved network,” said PLDT and Smart Technology Group Head Rolando G. Peña. “The numbers tell the story.”
Comprehensive upgrades
Earlier this year Smart and its parent company the Philippine Long Distance Telephone Co. (PLDT) began a new round of network upgrades. A total of P67 billion has been earmarked to update and install network elements wireless base stations, fiber optic cables, and international gateways to further improve quality of service across all fronts.
“It’s easy to say that you have the fastest devices and the fastest wireless connection speeds, but if you don’t have a solid infrastructure working in the background, you can’t deliver quality service to your subscribers” added Peña.
To date, PLDT and Smart have a total of 42,000kms of fiber optic cables arranged in loops with an additional 3,000kms of cabling set to be installed before end 2011. A “looped” configuration makes a network more resilient as it offers alternative means of transmitting data even when primary line of communication have been severed.
Nationwidest coverage
With thousands of cell sites located across Luzon, Visayas, and Mindanao, Smart boasts of the nationwidest coverage in the country. Its HSPA and HSPA+ services are available in major cities and municipalities in the Philippines.
Smart is also pioneering the fastest 4G technology in the Philippines with the introduction of LTE (long term evolution) technology called Smart Evolution.
Broadband dongle supplier Huawei expects 25% growth
CHINA-BASED Huawei Technologies Co. Ltd., which supplies hardware to local telco firms, sees its revenues growing by a quarter this year to $400 million over roughly $320 recorded in 2010.
Hua Yang, president for the enterprise business group for Huawei Southeast Asia, said the growth of the company in the Philippines can be attributed to its services’ affordability and its different solutions being offered.
“[We do] not only [offer] telecom services but also ICT (information and communications technology) solutions,” Mr. Yang said at the launch of a training program.
“We continue bringing affordable solutions ... that has driven us in this market,” Mr. Yang added.
The firm sells handsets, dongles for broadband Internet and “various equipment” to local telcos such as the Philippine Long Distance Telephone Co. and its mobile network provider Smart Communications, Inc.
Huawei also counts as clients Ayala-led Globe Telecom, Inc., and Gokongwei’s mobile brand Sun Cellular, which is operated by Digital Telecommunications Philippines, Inc.
Seventy percent of wireless voice traffic in the Philippines allegedly goes through Huawei’s platforms, while 80% of household Internet traffic also goes through the firm’s platforms, Nathan Wang, vice-president for the enterprise business group for Huawei Southeast Asia, said.
The firm has grown to over 400 employees in the Philippines during its 10-year stay in the country, he added.
Huawei and Asia Pacific College, which was founded by SM Foundation and IBM Philippines, inked an agreement yesterday for the provision of a training center.
Hua Yang, president for the enterprise business group for Huawei Southeast Asia, said the growth of the company in the Philippines can be attributed to its services’ affordability and its different solutions being offered.
“[We do] not only [offer] telecom services but also ICT (information and communications technology) solutions,” Mr. Yang said at the launch of a training program.
“We continue bringing affordable solutions ... that has driven us in this market,” Mr. Yang added.
The firm sells handsets, dongles for broadband Internet and “various equipment” to local telcos such as the Philippine Long Distance Telephone Co. and its mobile network provider Smart Communications, Inc.
Huawei also counts as clients Ayala-led Globe Telecom, Inc., and Gokongwei’s mobile brand Sun Cellular, which is operated by Digital Telecommunications Philippines, Inc.
Seventy percent of wireless voice traffic in the Philippines allegedly goes through Huawei’s platforms, while 80% of household Internet traffic also goes through the firm’s platforms, Nathan Wang, vice-president for the enterprise business group for Huawei Southeast Asia, said.
The firm has grown to over 400 employees in the Philippines during its 10-year stay in the country, he added.
Huawei and Asia Pacific College, which was founded by SM Foundation and IBM Philippines, inked an agreement yesterday for the provision of a training center.
Smart to launch 4G dongles
Giant wireless provider Smart Communication Inc. announced that it will launch a fourth generation (4G) dongle that can deliver up to 12 megabits per second (Mbps) internet speed for prepaid users.
Gio Bacareza, Smart head for Broadband, Internet and Data Servicess said the new dongle, due out this week, will use the evolved High-Speed Packet Access (HSPA+) technology.
HSPA is an amalgamation of two mobile telephony protocols--High Speed Downlink Packet Access (HSDPA) and High Speed Uplink Packet Access (HSUPA).
These protocols extend and improve the performance of existing WCDMA protocols, an air interface standard found in 3G mobile telecommunications networks.
HSPA+, meanwhile, is a wireless broadband standard defined in 3GPP release 7 and 8 of the WCDMA specification. This provides data rates up to 84 Mbit/s in the downlink and 22 Mbit/s in the uplink with multiple input, multiple output technologies and higher order modulation.
Bacareza said that the services will be initially available in selected areas in the country were the 154 HSPA+ based station located--major urban centers including Iloilo City in Visayas and Zamboanga City in Mindanao and in Metro Manila.
For this year , Bacareza said that they expect their mobile broadband subscribers to reach 1.4 million.
To match the expected growth in subscribers, Smart, together with its parent company the Philippine Long Distance Co. (PLDT) has earmarked P67 billion to modernize for over two years to update and install network elements, wireless base stations, fiber optic cables and international gateways to further improve quality of service across all fronts.
Of the total, P34 billion was allocated for this year. P8.5 billion of which will be used for the upgrade of Smart and PLDT transport network.
Part of the transport network expansion, Smart said it has increased its access network capacity by 51 percent from 18.2 Gbps in May this year to 27.4 Gbps in July.
Smart Packet Core network has also increased by 89 percent from 14.5 Gbps in May to 27.4 Gbps in July .
To know the impact of its modernization program to its subscribers, Smart has asked independent professional engineering service provider NESIC Philippines, Inc. (NPI) to conduct a Speed tests on its mobile broadband services .
According to NESIC Philippines Inc. (NPI), Smart Bro Plug-It has outperformed its nearest competitor.
The NPI tests, which were conducted in 100 locations around the country between July 4 to July 6 showed that Smart Bro outperformed Globe Tattoo 100 percent of the time in terms of average download speeds.
The methodology used to measure the data was Speedtest.net and the test server is located in San Francisco, USA (SF Monkey Brains server). The average speed test is taken from a sample of five tests.
Of the total, 29 tests were done in Metro Manila; 21, Northern Luzon; 18, Southern Luzon; 15, Visayas and 17, Mindanao. While 32 tests were conducted in residential; 44, commercial and 24, school.
The NPI results also showed that there is an average difference of 0.74 megabytes per second (Mbps) between Smart Bro and Globe Tattoo with 26 areas reflecting a 1Mbps discrepancy or greater.
The speed test was commissioned by Smart. NPI was also the one who conducted the speed test for Globe last year.
In terms of peak speed, Smart Bro also beat the competition 99 percent of the time with an average difference of 1Mbps.
Globe, on the other hand, beat Smart Bro in only one of the 100 test locations -- at the Matutina Restaurant in Dagupan.
Peak speed refers to the absolute fastest speed while average speed takes all results into account.
"Our susbscribers are now enjoying the benefits of our improved network," Rolando G. Peña , Philippine Long Distance Telephone Co. (PLDT) and Smart Technology Group Head said
To date, PLDT and Smart have a total of 42,000kms of fiber optic cables arranged in loops, with an additional 3,000kms of cabling set to be installed before end-2011.
A "looped" configuration makes a network more resilient as it offers alternative means of transmitting data even when primary line of communication have been severed.
Smart is also pioneering the fastest 4G technology in the Philippines with the introduction of LTE (long term evolution) technology called Smart Evolution.
Gio Bacareza, Smart head for Broadband, Internet and Data Servicess said the new dongle, due out this week, will use the evolved High-Speed Packet Access (HSPA+) technology.
HSPA is an amalgamation of two mobile telephony protocols--High Speed Downlink Packet Access (HSDPA) and High Speed Uplink Packet Access (HSUPA).
These protocols extend and improve the performance of existing WCDMA protocols, an air interface standard found in 3G mobile telecommunications networks.
HSPA+, meanwhile, is a wireless broadband standard defined in 3GPP release 7 and 8 of the WCDMA specification. This provides data rates up to 84 Mbit/s in the downlink and 22 Mbit/s in the uplink with multiple input, multiple output technologies and higher order modulation.
Bacareza said that the services will be initially available in selected areas in the country were the 154 HSPA+ based station located--major urban centers including Iloilo City in Visayas and Zamboanga City in Mindanao and in Metro Manila.
For this year , Bacareza said that they expect their mobile broadband subscribers to reach 1.4 million.
To match the expected growth in subscribers, Smart, together with its parent company the Philippine Long Distance Co. (PLDT) has earmarked P67 billion to modernize for over two years to update and install network elements, wireless base stations, fiber optic cables and international gateways to further improve quality of service across all fronts.
Of the total, P34 billion was allocated for this year. P8.5 billion of which will be used for the upgrade of Smart and PLDT transport network.
Part of the transport network expansion, Smart said it has increased its access network capacity by 51 percent from 18.2 Gbps in May this year to 27.4 Gbps in July.
Smart Packet Core network has also increased by 89 percent from 14.5 Gbps in May to 27.4 Gbps in July .
To know the impact of its modernization program to its subscribers, Smart has asked independent professional engineering service provider NESIC Philippines, Inc. (NPI) to conduct a Speed tests on its mobile broadband services .
According to NESIC Philippines Inc. (NPI), Smart Bro Plug-It has outperformed its nearest competitor.
The NPI tests, which were conducted in 100 locations around the country between July 4 to July 6 showed that Smart Bro outperformed Globe Tattoo 100 percent of the time in terms of average download speeds.
The methodology used to measure the data was Speedtest.net and the test server is located in San Francisco, USA (SF Monkey Brains server). The average speed test is taken from a sample of five tests.
Of the total, 29 tests were done in Metro Manila; 21, Northern Luzon; 18, Southern Luzon; 15, Visayas and 17, Mindanao. While 32 tests were conducted in residential; 44, commercial and 24, school.
The NPI results also showed that there is an average difference of 0.74 megabytes per second (Mbps) between Smart Bro and Globe Tattoo with 26 areas reflecting a 1Mbps discrepancy or greater.
The speed test was commissioned by Smart. NPI was also the one who conducted the speed test for Globe last year.
In terms of peak speed, Smart Bro also beat the competition 99 percent of the time with an average difference of 1Mbps.
Globe, on the other hand, beat Smart Bro in only one of the 100 test locations -- at the Matutina Restaurant in Dagupan.
Peak speed refers to the absolute fastest speed while average speed takes all results into account.
"Our susbscribers are now enjoying the benefits of our improved network," Rolando G. Peña , Philippine Long Distance Telephone Co. (PLDT) and Smart Technology Group Head said
To date, PLDT and Smart have a total of 42,000kms of fiber optic cables arranged in loops, with an additional 3,000kms of cabling set to be installed before end-2011.
A "looped" configuration makes a network more resilient as it offers alternative means of transmitting data even when primary line of communication have been severed.
Smart is also pioneering the fastest 4G technology in the Philippines with the introduction of LTE (long term evolution) technology called Smart Evolution.
PLDT profits dip in Q2 but see rebound in 2013
Profits of the Philippine Long Distance Telephone Co. (PLDT) slid in the second quarter of the year on the back of declining call and text messaging revenues amid a maturing market and increasing competition.
PLDT chairman Manuel V. Pangilinan on Tuesday said the drop in earnings was largely expected, noting that as the company’s financial position remained strong, allowing for continued dividend pay outs for shareholders.
The company posted a core net income of P10.75 billion in the April to June period of the year, down 3 percent year-on-year. Striping the effects of foreign exchange, PLDT’s reported net income was 3 percent up at P10.56 billion.
On a year-to-date basis, core profit was down 1 percent to P21.02 billion, while reported profit was down 2 percent at P21.3 billion.
This came as first-half consolidate service revenues fell 3 percent to P69.6 billion. The company said the 5-percent growth in wireless broadband Internet revenues failed to offset the 2-percent decline in text messaging and 8-percent fall in mobile voice earnings. Wireless call and text revenues will make up about 68 percent of total earnings.
The company declared a dividend of P78 per share, in line with the firm’s policy of distributing 70 percent of its total core earnings to shareholders.
“While we anticipated the softening of our income position from a year-on-year perspective, the improvement of our first half results we see when compared with those of the second half of 2010 is encouraging,” he said in a statement.
Investment grade
PLDT announced that its obligations were recently upgraded to “investment grade” by rating firms’ Moody’s Investor Service and Fitch Ratings—a reflection of the company’s financial health, officials said.
At “investment grade,” PLDT’s debt notes are rated one notch higher than foreign-denominated securities issued by the Philippine government.
“PLDT is the only Philippine corporate with an investment grade rating,” PLDT president and CEO Napoleon Nazareno said.
Pangilinan said PLDT was the first Philippine entity to earn an “investment grade” rating. In the past, companies have never been allowed to be rated above their respective home countries. “But I think that policy has been lifted recently,” he said.
The company said the rating upgrades were a “validation of PLDT’s financial strength,” despite reporting lower profits so far this year.
Pangilinan said the company expected its profits to be boosted by its acquisition of rival operator Digitel Telecommunications Philippines Inc. to be completed by the second half of this year.
Awaiting approval
The P74.1-billion acquisition is currently awaiting the approvals of the National Telecommunications Commission (NTC), the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange.
The company ended June with a total mobile phone user base of 47.8 million people, up 5 percent from last year, solidifying its position as the country’s largest telecom service provider.
Officials said PLDT earnings would likely continue to drop until 2012, but it would likely grow again by 2013 driven by new revenue streams, mainly broadband Internet services. “Broadband remains our top priority as we believe there is much room to expand on this front,” PLDT chief wireless adviser Orlando B. Vea said.
PLDT chairman Manuel V. Pangilinan on Tuesday said the drop in earnings was largely expected, noting that as the company’s financial position remained strong, allowing for continued dividend pay outs for shareholders.
The company posted a core net income of P10.75 billion in the April to June period of the year, down 3 percent year-on-year. Striping the effects of foreign exchange, PLDT’s reported net income was 3 percent up at P10.56 billion.
On a year-to-date basis, core profit was down 1 percent to P21.02 billion, while reported profit was down 2 percent at P21.3 billion.
This came as first-half consolidate service revenues fell 3 percent to P69.6 billion. The company said the 5-percent growth in wireless broadband Internet revenues failed to offset the 2-percent decline in text messaging and 8-percent fall in mobile voice earnings. Wireless call and text revenues will make up about 68 percent of total earnings.
The company declared a dividend of P78 per share, in line with the firm’s policy of distributing 70 percent of its total core earnings to shareholders.
“While we anticipated the softening of our income position from a year-on-year perspective, the improvement of our first half results we see when compared with those of the second half of 2010 is encouraging,” he said in a statement.
Investment grade
PLDT announced that its obligations were recently upgraded to “investment grade” by rating firms’ Moody’s Investor Service and Fitch Ratings—a reflection of the company’s financial health, officials said.
At “investment grade,” PLDT’s debt notes are rated one notch higher than foreign-denominated securities issued by the Philippine government.
“PLDT is the only Philippine corporate with an investment grade rating,” PLDT president and CEO Napoleon Nazareno said.
Pangilinan said PLDT was the first Philippine entity to earn an “investment grade” rating. In the past, companies have never been allowed to be rated above their respective home countries. “But I think that policy has been lifted recently,” he said.
The company said the rating upgrades were a “validation of PLDT’s financial strength,” despite reporting lower profits so far this year.
Pangilinan said the company expected its profits to be boosted by its acquisition of rival operator Digitel Telecommunications Philippines Inc. to be completed by the second half of this year.
Awaiting approval
The P74.1-billion acquisition is currently awaiting the approvals of the National Telecommunications Commission (NTC), the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange.
The company ended June with a total mobile phone user base of 47.8 million people, up 5 percent from last year, solidifying its position as the country’s largest telecom service provider.
Officials said PLDT earnings would likely continue to drop until 2012, but it would likely grow again by 2013 driven by new revenue streams, mainly broadband Internet services. “Broadband remains our top priority as we believe there is much room to expand on this front,” PLDT chief wireless adviser Orlando B. Vea said.
Local infrastructure still inadequate, study shows
Thailand's telecom regulatory and policy environment remains weak in terms of legitimacy and enforcement, says the Thailand Development Research Institute (TDRI).
Thailand ranked third out of seven countries in South Asia this year, with 2.7 points on a scale of five, said TDRI research director Duenden Nikomborirak.
Pakistan was the best performer with 3.3 points, followed by India with 2.9 points. The other five countries each received 2.6 points.
The seven countries were Bangladesh, India, Pakistan, Sri Lanka, Indonesia, the Philippines and Thailand.
The research was conducted by TDRI and the international organisation LIRNEasia from 2010-11, with 50 respondents in three groups: operators and equipment manufacturers, industry analysts and legal firms; academics and journalists; and community and consumer groups.
Dr Duenden said the ranking showed no improvement for Thailand from the 2008 research figure, reflecting the country's improper regulatory structures in interconnection (IC), tariff regulation, anti-competitive practices, market entry, access to limited resources, universal service obligation and service quality.
Thailand got the lowest score in interconnection charge because the IC rate in the Thai market was still high at one baht per minute. The charges also do not apply to the state telecom enterprises, TOT Plc and CAT Telecom. The IC on broadband internet remained unclear as the industry regulator failed to settle service provider disputes.
IC rates are fees that operators charge each other for handling calls across various networks.
Dr Duenden said the absence of 3G wireless broadband service and new WiFi expansion has resulted in a sharp decline in new telecom investments, whose contribution to the country's GDP fell from 1.45% in 2001 to 0.2% in 2009.
She pressed the Thai government to amend the Trade Competition Act of 1999 to abolish an exemption provided to the state telecom enterprises.
The National Broadcasting and Telecommunications Commission should clearly define all types of licences to promote transparency, she said, adding that proper regulations are urgently needed to ensure free and fair competition in the industry.
Thailand ranked third out of seven countries in South Asia this year, with 2.7 points on a scale of five, said TDRI research director Duenden Nikomborirak.
Pakistan was the best performer with 3.3 points, followed by India with 2.9 points. The other five countries each received 2.6 points.
The seven countries were Bangladesh, India, Pakistan, Sri Lanka, Indonesia, the Philippines and Thailand.
The research was conducted by TDRI and the international organisation LIRNEasia from 2010-11, with 50 respondents in three groups: operators and equipment manufacturers, industry analysts and legal firms; academics and journalists; and community and consumer groups.
Dr Duenden said the ranking showed no improvement for Thailand from the 2008 research figure, reflecting the country's improper regulatory structures in interconnection (IC), tariff regulation, anti-competitive practices, market entry, access to limited resources, universal service obligation and service quality.
Thailand got the lowest score in interconnection charge because the IC rate in the Thai market was still high at one baht per minute. The charges also do not apply to the state telecom enterprises, TOT Plc and CAT Telecom. The IC on broadband internet remained unclear as the industry regulator failed to settle service provider disputes.
IC rates are fees that operators charge each other for handling calls across various networks.
Dr Duenden said the absence of 3G wireless broadband service and new WiFi expansion has resulted in a sharp decline in new telecom investments, whose contribution to the country's GDP fell from 1.45% in 2001 to 0.2% in 2009.
She pressed the Thai government to amend the Trade Competition Act of 1999 to abolish an exemption provided to the state telecom enterprises.
The National Broadcasting and Telecommunications Commission should clearly define all types of licences to promote transparency, she said, adding that proper regulations are urgently needed to ensure free and fair competition in the industry.
International survey slams NTC
A survey of Thailand's telecom regulatory and policy environment (TRE) has given the country a score of only 2.7 out of five points, with implementation of interconnection singled out with a low ranking of 2.59 points.
In the wake of the survey, criticism has been levelled at the National Telecommunications Commission (NTC).
The survey, conducted by the Thailand Development Research Institute (TDRI), was part of a TRE survey also covering other countries in South and Southeast Asia. It covered seven aspects of telecom operations: implementation of interconnection, universal service obligation, market entry, access to scarce resources, tariffs, anti-competitive practices and quality of service. Each category was given a score out of a possible five points.
While interconnection in Thailand gained the lowest score of 2.59, universal service obligation (USO) got the highest rating of 2.85. The remaining five categories were rated between 2.63 and 2.79 points, giving Thailand an overall middle-range average of 2.7 points out of five.
The research director for TDRI's Sectoral Economics Programme, Deunden Nikomborirak, said the main reason interconnection was given its lowly ranking was delays in enforcing regulations related to interconnection obligations in fixed telecom services.
In mobile business, state-owned enterprises are not subject to the NTC's interconnection rules. The NTC fails to intervene to protect small players in the setting of interconnection charges by large players, and this makes interconnection regulations and regimes impractical and holds back improvements, she said.
In the broadband business, interconnection rules are unclear, while the NTC takes no action to settle disputes between state and private operators concerning the use of networks under build-transfer-operate schemes.
"Interconnection problems arise from terms and conditions specified in concession contracts signed in the pre-market-liberalisation era. For example, the private mobile concessionaires have refused to pay access charges to TOT because the NTC has ruled that interconnection fees can substitute for access charges," Deunden said.
Moreover, the NTC has shown no effort to ensure compliance with its interconnection rules, which require the payment of cost-based interconnection charges, she said.
The survey was conducted by asking the opinions of 50 people from three main categories in each country. They were stakeholders directly affected by sector regulation such as operators and equipment manufacturers; stakeholders who analyse the sector with broader interests, such as analysts and lawyers; and stakeholders with an interest in improving the sector to help the public, such as academics, journalists, and members of the public.
The survey gave the universal service obligation (USO) the highest score of all of Thailand's categories. The USO obliges service providers to ensure that people in all parts of Thailand have access to telecom services on an equitable basis. Deunden said the score reflected the NTC's USO rule, passed in 2006, forcing operators and providers to contribute 4 per cent of their revenue to a USO fund.
Last year, the NTC announced a USO plan that specified villages and education institutes where fixed line and broadband services would be installed, in order to promote greater transparency. However, Thailand's USO score is still below the average (three points out of five) because the USO rules are unclear and management of USO funds is opaque.
In the market-entry category, the survey revealed concern that the licensing regime for fixed telecom services is neither transparent nor efficient. As well, there are no clear rules regarding "right-of-way". (A right-of-way is a strip of land that is granted, through an easement or other mechanism, for transportation purposes, such as for a trails, driveways, rail lines or highways, including telecom networks.)
Meanwhile, 3G licensing is long overdue and appears to be discriminatory. In the broadband business, even though several licences have been issued, small operators face unfavourable regulatory rules.
In the existing broadband-licensing regime, there is a lack of clarity in definitions of type 2 - private telecom services - and type 3 - public network telecom services. Survey respondents said that many type 2 operators were subsidiary companies of type 3 operators, and it was unclear how this area could be efficiently enforced, because the NTC did not treat a type-3 licence holder and its subsidiary as the same undertaking.
Respondents pointed out that Section 46 of the new Telecom and Broadcasting Act 2010 contains a provision that may be interpreted as prohibiting capacity resale, and hence, mobile virtual network operators. These are companies that provide mobile-phone services but do not have their own licensed frequency allocation. Nor do they necessarily have all of the infrastructure required to provide mobile-telephone services.
"Thailand's low market-entry score reflects an unfavourable legal environment, regulatory inefficiency and non-transparency," Deunden said.
She said the access-to-scarce-resources score was due mainly to legal problems beyond the control of the NTC. These included delays in licensing 3G services and WiMax - a telecommunications protocol that provides fixed and mobile Internet access. Also, and once more, there are no rules governing compensation for 'right-of-way' use.
Although the NTC's pro-competition approach has subdued the need for regulation of tariffs, the commission has shown limited capability to set tariffs, even in areas where this is needed. The NTC has adopted a hands-off approach to tariffs regulation, hence Thailand's low score in the tariffs category.
Deunden said there were several comments during the survey concerning anti-competitive practices. These were directed at the NTC's enforcement, which was seen as unfair, including discriminatory treatment, refusal to deal, no decisions made on alleged predatory pricing, and no action to solve anti-competitive problems.
The final category assessed by the survey concerned quality of service, and that reflected market forces rather than the regulatory oversight of the NTC. The competitive cellular market received a higher score than the less competitive broadband market.
Deunden said that overall, the negative perception of the regulatory regime could be explained by an unfavourable regulatory environment associated with the legacy of telecom concessions; legal complications that circumscribe the authority of the NTC to allocate frequencies; unclear and unpredictable regulatory rules; and lack of rules, or biased enforcement, partially due to the NTC's inability to deal with complicated regulatory issues such as tariffs and anti-competitive practices.
The TDRI has urged the government to amend the Trade Competition Act 1999 to abolish exemption provided to state enterprises.
It has also urged the NTC to provide clear definitions of types 1,2 and 3 licences in order to promote transparency; to provide clear implementation regulations to ascertain regulatory predictability and transparency; to build up a cost database for key services and the industry; to urgently formulate "right-of-way" rules; to establish a clear and transparent accounting system for the management of the universal service obligation fund; and to conduct proper regulatory impact assessments of its proposed regulations.
The TDRI's Thailand study was part of an international TRE Survey covering Bangladesh, India, Pakistan, Sri Lanka, and the Southeast Asia region including the Philippines and Indonesia. Surveys in the other markets were conducted by Learning Initiatives on Reforms for Network Economies Asia (LIRNEasia), most of the programmes of which are funded by the International Development Research Centre of Canada (IDRC) and the Department for International Development of the UK (DFID).
LIRNEasia's chief operating officer Rohan Samarajaiva said Pakistan led the survey with clear (even though expensive) licensing conditions, while Thailand had low scores in mobile due to confusion over new policies and regulatory uncertainty.
In the wake of the survey, criticism has been levelled at the National Telecommunications Commission (NTC).
The survey, conducted by the Thailand Development Research Institute (TDRI), was part of a TRE survey also covering other countries in South and Southeast Asia. It covered seven aspects of telecom operations: implementation of interconnection, universal service obligation, market entry, access to scarce resources, tariffs, anti-competitive practices and quality of service. Each category was given a score out of a possible five points.
While interconnection in Thailand gained the lowest score of 2.59, universal service obligation (USO) got the highest rating of 2.85. The remaining five categories were rated between 2.63 and 2.79 points, giving Thailand an overall middle-range average of 2.7 points out of five.
The research director for TDRI's Sectoral Economics Programme, Deunden Nikomborirak, said the main reason interconnection was given its lowly ranking was delays in enforcing regulations related to interconnection obligations in fixed telecom services.
In mobile business, state-owned enterprises are not subject to the NTC's interconnection rules. The NTC fails to intervene to protect small players in the setting of interconnection charges by large players, and this makes interconnection regulations and regimes impractical and holds back improvements, she said.
In the broadband business, interconnection rules are unclear, while the NTC takes no action to settle disputes between state and private operators concerning the use of networks under build-transfer-operate schemes.
"Interconnection problems arise from terms and conditions specified in concession contracts signed in the pre-market-liberalisation era. For example, the private mobile concessionaires have refused to pay access charges to TOT because the NTC has ruled that interconnection fees can substitute for access charges," Deunden said.
Moreover, the NTC has shown no effort to ensure compliance with its interconnection rules, which require the payment of cost-based interconnection charges, she said.
The survey was conducted by asking the opinions of 50 people from three main categories in each country. They were stakeholders directly affected by sector regulation such as operators and equipment manufacturers; stakeholders who analyse the sector with broader interests, such as analysts and lawyers; and stakeholders with an interest in improving the sector to help the public, such as academics, journalists, and members of the public.
The survey gave the universal service obligation (USO) the highest score of all of Thailand's categories. The USO obliges service providers to ensure that people in all parts of Thailand have access to telecom services on an equitable basis. Deunden said the score reflected the NTC's USO rule, passed in 2006, forcing operators and providers to contribute 4 per cent of their revenue to a USO fund.
Last year, the NTC announced a USO plan that specified villages and education institutes where fixed line and broadband services would be installed, in order to promote greater transparency. However, Thailand's USO score is still below the average (three points out of five) because the USO rules are unclear and management of USO funds is opaque.
In the market-entry category, the survey revealed concern that the licensing regime for fixed telecom services is neither transparent nor efficient. As well, there are no clear rules regarding "right-of-way". (A right-of-way is a strip of land that is granted, through an easement or other mechanism, for transportation purposes, such as for a trails, driveways, rail lines or highways, including telecom networks.)
Meanwhile, 3G licensing is long overdue and appears to be discriminatory. In the broadband business, even though several licences have been issued, small operators face unfavourable regulatory rules.
In the existing broadband-licensing regime, there is a lack of clarity in definitions of type 2 - private telecom services - and type 3 - public network telecom services. Survey respondents said that many type 2 operators were subsidiary companies of type 3 operators, and it was unclear how this area could be efficiently enforced, because the NTC did not treat a type-3 licence holder and its subsidiary as the same undertaking.
Respondents pointed out that Section 46 of the new Telecom and Broadcasting Act 2010 contains a provision that may be interpreted as prohibiting capacity resale, and hence, mobile virtual network operators. These are companies that provide mobile-phone services but do not have their own licensed frequency allocation. Nor do they necessarily have all of the infrastructure required to provide mobile-telephone services.
"Thailand's low market-entry score reflects an unfavourable legal environment, regulatory inefficiency and non-transparency," Deunden said.
She said the access-to-scarce-resources score was due mainly to legal problems beyond the control of the NTC. These included delays in licensing 3G services and WiMax - a telecommunications protocol that provides fixed and mobile Internet access. Also, and once more, there are no rules governing compensation for 'right-of-way' use.
Although the NTC's pro-competition approach has subdued the need for regulation of tariffs, the commission has shown limited capability to set tariffs, even in areas where this is needed. The NTC has adopted a hands-off approach to tariffs regulation, hence Thailand's low score in the tariffs category.
Deunden said there were several comments during the survey concerning anti-competitive practices. These were directed at the NTC's enforcement, which was seen as unfair, including discriminatory treatment, refusal to deal, no decisions made on alleged predatory pricing, and no action to solve anti-competitive problems.
The final category assessed by the survey concerned quality of service, and that reflected market forces rather than the regulatory oversight of the NTC. The competitive cellular market received a higher score than the less competitive broadband market.
Deunden said that overall, the negative perception of the regulatory regime could be explained by an unfavourable regulatory environment associated with the legacy of telecom concessions; legal complications that circumscribe the authority of the NTC to allocate frequencies; unclear and unpredictable regulatory rules; and lack of rules, or biased enforcement, partially due to the NTC's inability to deal with complicated regulatory issues such as tariffs and anti-competitive practices.
The TDRI has urged the government to amend the Trade Competition Act 1999 to abolish exemption provided to state enterprises.
It has also urged the NTC to provide clear definitions of types 1,2 and 3 licences in order to promote transparency; to provide clear implementation regulations to ascertain regulatory predictability and transparency; to build up a cost database for key services and the industry; to urgently formulate "right-of-way" rules; to establish a clear and transparent accounting system for the management of the universal service obligation fund; and to conduct proper regulatory impact assessments of its proposed regulations.
The TDRI's Thailand study was part of an international TRE Survey covering Bangladesh, India, Pakistan, Sri Lanka, and the Southeast Asia region including the Philippines and Indonesia. Surveys in the other markets were conducted by Learning Initiatives on Reforms for Network Economies Asia (LIRNEasia), most of the programmes of which are funded by the International Development Research Centre of Canada (IDRC) and the Department for International Development of the UK (DFID).
LIRNEasia's chief operating officer Rohan Samarajaiva said Pakistan led the survey with clear (even though expensive) licensing conditions, while Thailand had low scores in mobile due to confusion over new policies and regulatory uncertainty.
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