Globe CEO on Telstra: I'm not scared of ghosts

Globe Telecom, Incorporated has a message to Australia’s largest telecommunications company Telstra Corporation Limited: Sign the contract and we will play.

This is Globe President and CEO Ernest Cu's remarks on the possible entry of Telstra in 2016, in partnership with diversified conglomerate San Miguel Corporation.

"Once they sign, we'll talk; but right now there is no deal yet. I don’t get scared of ghosts," Cu said.

"Anyone who comes in is a threat. But I'm not going to react to a threat that's not real. Sign the contract and we’ll play," Cu told reporters on the sidelines of a product launch in Makati City on Wednesday night, November 5.

Telstra last month told the Australian Securities Exchange that it has set aside $1.5 billion in capital for mergers and acquisitions for the rest of 2015. The bulk of the capital, Telstra said, may reach the Philippines through a joint venture with San Miguel.

San Miguel President and COO Ramon S. Ang said the telco partnership will offer voice, text, and Internet services with focus on mobile-broadband services.

Ang even announced at the Forbes Global CEO Conference in October that his company will launch a third major telecommunications player in the country by 2016. (READ: Ramon Ang: We hope to open 3rd major telco by 2016)

Sought for comment, Cu said Globe will only include the possible entry of Telstra-San Miguel in its game plan once the deal is signed.

"They are priming the market. We've been working on our network for 13 years now. Do you think they can deliver on Day One?" Cu said.

He added that all Globe is doing now is what it has been doing best – continuing to gain market share and to maintain innovation in market.

"We have [the] formula that’s worked really well for us for the last 5 years," he added.

Meanwhile, Manuel V. Pangilinan, chairman of Philippine Long Distance Telephone Company (PLDT), said it will take into account the possible entry of Telstra-San Miguel in its 2016 plan.

"We need to protect our market share for prepaid and postpaid. We'll feel it immediately but it depends on what their tactics (are). It's hard to speculate. But really, they wouldn’t come in without a fanfare. The novelty of a new player ... some people will be lured to try," Pangilinan said on November 3.

No savior

But for National Broadband Network (NBN)-ZTE deal whistleblower Rodolfo "Jun" Lozada, a new telco player like Telstra would not make much of a difference.

Lozada cited a report in May 2015 by Australia's Telecommunications Industry Ombudsman stating Telstra as the most complained telco firm in the country.

"Positioning themselves as the ’savior’ and ’third player’ that will solve the problem of slow Internet speed in the country has not easily swayed customers and stakeholders who are aware of Telstra’s own service delivery issues in Australia," Lozada said in a statement. (READ: New Internet speed minimum throwback to '90s?)

While improved service and increased competition will always benefit consumers, Lozada said the country needs NBN to solve slow Internet woes.

"We don’t have an NBN here in the Philippines which is likened to roads used to move people and goods around," he said.

A $329-million NBN project was previously awarded in 2007 to Chinese contractor, Zhing Xing Telecommunications Equipment Inc. (ZTE), but later rescinded by former President Gloria Macapagal-Arroyo after reports of massive irregularities surfaced. Lozada was named emissary or representative in the negotiations for the NBN project.

"We need these roads to move these goods freely to create trade. Prior to that, all the agricultural goods were moving freely. Now that we have an era where we're now trading digital goods, almost all of the roadways, and the path of digital goods are privately owned," Lozada added. – Rappler.com

PLDT prepares for entry of Telstra in PHL

PLDT is preparing to improve further its services for the possible entry of Australia’s telecoms giant Telstra in the Philippines.

“We are preparing the network, with Telstra’s entry or not, in delivering coverage and speed,” PLDT Chairman Manuel V. Pangilinan said in a press briefing.


He said that PLDT will increase its capital expenditures next year from $4.6 billion in the last six years.

“The levels (Capex) will be alleviated,” Pangilinan said.

Telstra would be investing less than US$1 billion in the Philippines through a partnership with local conglomerate San Miguel Corp. (SMC).

Andrew Penn, Telstra chief executive officer, earlier said that should Telstra decide to pursue its Philippine venture, it would only initially invest less than USD 1 billion, in contrast with previous reports, because of some regulatory concerns.

Telstra to cut costs and spend up to $US1 billion in Philippines to fight rivals

Telstra chief executive Andy Penn will combat rising competition and falling revenues by slashing costs and boosting the levels of customer service delivered through computer systems rather than people.
Speaking to investors in Sydney on Thursday, Mr Penn also revealed that the telecommunications giant was willing to pump up to $US1 billion ($1.4 billion) into owning a 40 per cent stake of a joint-venture to build a new mobile network in the Philippines, which would value the South-East Asian company at $US2.5 billion.
The push to slash human costs and push hard into relatively risky growth businesses in regions like Asia and eHealth come at a crucial time for Telstra as it faces pressure from competitors, regulators and the steady rollout of the national broadband network.
Telstra on Thursday night announced it would slash a total of 411 jobs from its call centres throughout Australia, of which 276 work for third-party contractors.


But Mr Penn was also maintained guidance for mid-single digit growth in revenue and low-single digit growth in earnings before interest, taxation, depreciation and amortisation for the telco giant.
"There is no doubt the dynamics in our core markets have changed – the competitive environment has increased in fixed, mobiles and in media and we're also further down the path towards the full migration to the NBN," he said. "The long-term migration to the NBN has a material [negative] impact to the financials of Telstra.
"[Over the next five years] we will need to continue to drive growth and our productivity programs further than before."
Telstra shares fell 1.4 per cent on Thursday to $5.50. The stock has fallen 10.6 per cent in the last six months.
Mr Penn said a push by all telcos to ramp up download allowances has contributed to a slight fall in the amount of cash generated from each postpaid mobile customer during the three months ending September 30, 2015 compared to the year before.
While Telstra is not certain if this will become a long term trend going forward, it does show that competition is having a real financial impact on the company. Mr Penn also added that the three months ending September 30, 2014 had been a bumper period.
Changing its accountability
Telstra chief financial officer Warwick Bray said the company was changing the way it held itself accountable on reducing the cost of doing business while being more productive with the resources available.
It has boosted productivity by $1 billion every year, of which around $500 million to $550 million has come from cutting expenses, moving some redundant jobs offshore and boosting automation.
"If given a choice, 75 per cent of … customers would rather go online and self-serve to resolve their problem," he said. "This represents an opportunity for our customers and for us to reduce call volumes into our assurance contact centres."
He said giving customers the ability to run their own accounts through smartphone apps and internet sites were helping to increase the number of customers fixing their own problems.
"This year we are increasing the automation in our NBN activation process, reducing the time to a working service while reducing the customer and employee effort required to achieve a market-leading NBN experience," Mr Bray added.
Mr Penn also provided a much clearer picture of Telstra's potential partnership with Philippines beer and food giant, San Miguel. Both companies want to become a third force in the Philippine's mobile market, up against local incumbents PLDT and Globe Telecom.
Estimates of how much the project would cost had varied wildly from $US500 million ($700 million) to $US3 billion ($4 billion) and Telstra shareholders are expressing concern about the lack of detail.
But Mr Penn provided more clarity and said Telstra would spend no more than $US1 billion for a 40 per cent stake of a joint-venture, which is the most a foreign company can own there. This money would go towards the construction of the mobile network along with extra cash raised by borrowing from banks.
Media outlet TMT Finance, which first revealed Telstra's push into the Philippines, reported that the telco has picked four banks to give it a $US500 million loan for the project – BDO, ANZ, DBS and Standard Chartered.
Mr Penn also slammed the Philippines' existing players, Globe and PLDT, which currently dominate the mobile market for their service levels.
"Let's face it – go to the Philippines, experience for yourself the sort of lousy service you get from the incumbent operators and you will see that the opportunity there for new operators to provide a much better quality service over an LTE network using better spectrum," he said.
"As for why not Myanmar … we recognised [the Philippines] would be a significant project and we got a lot of work there supporting San Miguel in terms of network rollout and design."
Nikko Asset Management portfolio manager Michael Maughan said it was good to see Telstra provide an upper limit for its investment in the Philippines.
"It's not an insignificant amount but it's probably within the limits of what the market is willing to see committed," he said.
He added that shareholders should not be overly concerned by the fall in postpaid handset revenue per user yet.
"What Telstra is telling you is it doesn't know how the competitive environment is going to play out," he said. "But competitors should be under no illusions that it will remain competitive.
"Telstra won't be sacrificing share to maintain margins - it will price its products competitively."

Globe launches own 1-Gbps broadband offering for P9,499

The telco war heats up anew as Globe Telecom, Incorporated said on Thursday, October 22, that it has its own new roster of home broadband plans.

Globe said in a press release that to strengthen its broadband business, it launched its home broadband plans powered by fiber-to-the-home (FFTH) technology, "providing customers the fastest fiber connection speeds at home now available at a more affordable price."

"The offering of a more aggressive home broadband portfolio also forms part of the telco’s efforts to uplift the state of Internet services in the country by giving customers access to a faster Internet experience with lower monthly service fees," the statement read.

The Philippine government has redefined broadband services and set the minimum speed at 256 kilobits per second. The country though is way behind its neighbors in Asia in Internet speed, where some of the fastest Internet speeds in the world are found.

New plans

On October 21, tech blog Yugatech acquired a leaked document that showed the Ayala-led telco firm was to launch its Platinum Broadband plans that have higher bandwidth. (READ: Globe to upgrade bandwidth on broadband plans by October 24 - report)

This came after rival Philippine Long Distance Telephone Company (PLDT) announced on October 20 its 1-Gbps (Gigabit per second) "fastest" advertised, broadband offering.

Globe said that with its new Platinum Broadband Plans, home broadband customers can enjoy a broadband plan with Internet speeds of up to:

50 Mbps (Megabits per second) at Plan P2,499 ($53.71)
100 Mbps at Plan P3,499 ($75.20)
200 Mbps at Plan P4,499 ($96.69)
500 Mbps at Plan P7,499 ($161.17)
1 Gbps at Plan P9,499 ($204.15)
Globe said all plans are bundled with unlimited data and no data cap. The plans also have free access to Spotify, NBA League Pass, and HOOQ.

The new offerings will soon be tested once the National Telecommunications Commission implements its new rules on advertised fixed broadband speed.

Competitive pricing scheme?

The telco company said its new pricing scheme is less than half of its previous price offering and effectively puts the Philippines on par, if not better, than other countries such as US, Thailand, and Indonesia in terms of affordability of broadband services.

“We are very excited to offer our new Platinum Broadband Plans as our way to provide Filipinos, one area at a time, with high-quality broadband services that need not be costly," said Gilbert Simpao, senior vice president for consumer broadband at Globe.

Simpao said in the press release that the telco company is offering a full-range of "best-value broadband plans" from 50 Mbps to as much as 1 Gbps, "now made more affordable and accessible, complete with value-for-money plan constructs that include exclusive perks and privileges, freebies, and premium device bundles for a world-class Internet experience like no other, perfect for today’s fast-paced and digitally-connected lifestyle at home.”

Available in select areas

The 50 Mbps and 100 Mbps plans will be initially available Friday, October 24, in over 80 Platinum-covered sites in select key areas within Ortigas, Taguig City, Alabang, Makati, Eastwood, Rockwell, Mandaluyong, Pasay, Pasig, San Juan, Muntinlupa, Las Pinas, Parañaque, Manila, Quezon City, and Sta. Rosa, Laguna.

The 200 Mbps plan is initially offered in Green Meadows, Acropolis, White Plains, Forbes Par, Bel-Air Village, Urdaneta Village, Ayala Alabang, Alabang 400, Southbay Gardens, The Amaryllis, San Lorenzo Village, Serendra, Abrio Nuvali, and Ayala Greenfield Estates.

The 500 Mbps and 1 Gbps plans will be available in Acropolis, Bel-Air Village, Forbes Park, Greenmeadows, Urdaneta Village, and White Plains for its initial roll-out.

"All plans will be available in more sites over the coming months as the telco’s fiber network expands to more areas nationwide," Globe said.

Globe said its Platinum Broadband customers also get access to exclusive perks and privileges such as a dedicated Platinum Relationship Manager, dedicated Platinum Hotline, and Concierge assistance.

For more information on the areas covered by these upgraded plans, visit tattoo.globe.com.ph, call (+63 2) 730-1010, or visit any Globe Store.

Soon there will be free Wi-Fi for all in the Philippines

By the end of 2016, the Philippines will have free Wi-Fi services nationwide, Bloomberg reports. About half of its towns and cities will get service this year. The cost of this project, which will bring Wi-Fi to public schools, hospitals, airports and parks, rings in at about 1.5 billion pesos ($32 million USD) a year.
Monchito Ibrahim, deputy executive director of the Information and Communications Technology Office, told Bloomberg that implementing free Internet might squeeze telecom companies into changing their practices, and that the government is focused on “areas that absolutely don’t have access”.
This development could be a problem for Philippine Long Distance Telephone Co. and Globe Telecom Inc., the two companies who have a corner on Internet service in the country.
Currently, access to the Internet in the Philippines costs about $18 per Mbps which is extremely high compared with the global average of $5, according to the report. This could mean the country’s phone companies will enhance their network so they can offer higher speeds, because while there will be free Internet, it won’t be blazing fast.
The free Wi-Fi service speed will be capped at 256 kilobits per second -- fast enough for your basic Googling and Facebooking. But for now that could be good enough: In Asia, the broadband connectivity in the Philippines only outranks Afghanistan.

Philippines to Roll Out Nationwide Free Wi-Fi Service by 2016

The Philippines is planning free Wi-Fi services to half of its towns and cities this year and nationwide coverage by end-2016, limiting the data revenue prospects for Philippine Long Distance Telephone Co. and Globe Telecom Inc.
The free Internet service will cost the government about 1.5 billion pesos ($32 million) a year and will be available in areas such as public schools, hospitals, airports and parks, said Monchito Ibrahim, deputy executive director of the Information and Communications Technology Office.
“If subscribers move to using free public Wi-Fi, telecoms may need to lure them into getting higher-end services,” Ibrahim said in a Sept. 4 interview in Makati City, referring to the country’s two main phone companies. The government’s “focus is on areas that absolutely don’t have access.”
The new service is expected to push data charges lower in the Philippines. Access to the Internet costs about $18 a megabit per second in the country, more than three times the global average of $5, according to research firm International Data Corp. or IDC.
For the country’s two biggest phone companies, that means more expenses to boost their network for services offering higher speeds.
Service Improvement
“The free Wi-Fi service would compel improvement of service of both telecoms,” said Lexter Azurin, research head at Unicapital Securities Inc. “Definitely, they might need more capex for that, which would impact earnings at the end of the day.”
The government’s free Wi-Fi service has its limitations. Speed is capped at 256 kilobits per second, enough for basic Internet searches or access to Facebook, Ibrahim said. The government’s initiative comes as lawmakers investigate slow and expensive Internet connection in the Philippines, where broadband connectivity is only ahead of Afghanistan in Asia, according to IDC.
By contrast, Singapore started a free wireless service in 2006 that now offers speeds of as much as 2 megabits per second -- eight times faster than the one planned in the Philippines. That’s enough for phone calls on the data network or video streaming, with the access offered at public places such as the airport, malls, hospitals and schools.
Diverging Performance
The ability to drive data usage has separated the performance of the two Philippine phone companies. Globe, owned by Singapore Telecommunications Ltd. and Ayala Corp., posted a 27 percent jump in first-half profit with services such as free Facebook access in October 2013. PLDT, which reported a 6.5 percent drop in earnings, took more than a year to counter with free mobile Internet access.
Globe shares climbed 47 percent this year, while PLDT declined 18 percent. The Philippine benchmark gauge slid 4.2 percent.
PLDT been asked to participate in the network and is looking at it, spokesman Ramon Isberto said.
“As more people get into the data traffic, they will understand and eventually appreciate the ease of using of mobile Internet,” Yolanda Crisanto, a spokeswoman at Globe, said in a response to a query. “That will induce usage.”
While offering free Wi-Fi access is a step forward, what the country needs is a longer-term plan to improve Internet connectivity, Senator Bam Aquino, who heads the Senate trade and commerce committee, said last month. “What I’m looking for is really a major broadband plan,” he said.

Globe buys rest of BayanTel

Globe Telecom Inc. agreed to buy the remaining stake of the Lopez family in Bayan Telecommunications Inc. for P1.83 billion after the government allowed the Ayala-owned company to convert BayanTel’s debt into equity.

Globe Telecom told the stock exchange it would purchase from Bayan Telecommunications Holdings Corp. and Lopez Holdings Corp. all the equity in the capital stock of BayanTel held by BTHC and LHC, valued at about 1.83 billion.

The transaction involves up to 70,763,707 BayanTel shares and increases Globe’s equity interest in BayanTel from 56.87 percent to 98.57 percent of the outstanding capital stock.

The deal came after the National Telecommunications Commission approved the conversion BayanTel debt by Globe into equity as provided under the ruling of a rehabilitation court.

The regulator’s approval will give Globe a 54-percent ownership stake in the BayanTel owned by the Lopez Group.

Globe acquired 98.26 percent of BayanTel’s loans and 100 percent of Radio Communications of the Philippines Inc.’s liabilities. RCPI, a unit of BayanTel, is owned by the Lopez Group.

The acquisition cost of $130 million was lower than the $400-million face value of BayanTel.

Globe president Ernest Cu had said his company and BayanTel were looking into various forms of collaboration that would benefit both companies, including DSL (digital subscriber line) and broadband.

Globe secured NTC approval of the joint use of BayanTel’s frequencies in the 1750-1760 megahertz/1845-1855 megahertz range.

The joint use agreement will allow Globe to address the increasing demand for voice, SMS and mobile data services, and BayanTel to offer its mobile telecommunications services to customers.

Besides frequency, Bayan has an existing nationwide network, which is composed of satellite, terrestrial and land/submarine-based cable facilities.

The NTC approved the takeover of BayanTel by Globe Telecom Inc. amid opposition from rival companies.

The NTC said “the acquisition by Globe of controlling interest in BayanTel pursuant to the court-approved amended rehabilitation plan and master restructuring agreement neither poses any prejudice to the public interest and convenience nor will make the service fail to operate or function better,” the NTC said in a 19-page decision.

The regulator said the joint application of BayanTel and Globe would enhance competition in the cellular mobile and broadband markets, rejecting the claim of rival Smart Communications Inc. that it would result in grossly disproportionate assignment of radio frequency.

Philippine Long Distance Telephone Co., Digitel Mobile Philippines Inc., Next Mobile and Eastern Telecommunications Philippines Inc. also opposed the transaction.

Telcos, gov't urged to set minimum Internet speed in accordance with int'l standards

Before an Internet service can be dubbed “broadband,” it needs to reach a minimum speed set by the government, said a coalition of non-government organizations in their position paper regarding the upcoming Memorandum Circular (MC) on Minimum Broadband Speeds of the National Telecommunications Commission (NTC).

In their paper, they said that the NTC, DTI, and DOJ should set a minimum Internet speed before telcos and Internet service providers (ISPs) can advertise their services as broadband Internet, citing the suggestion of Atty. Roy Ibay of Smart Telecommunications in a public hearing on broadband.

The groups behind the position paper are the Philippine Web Designers Organization (PWDO), Game Developers Association of the Philippines (GDAP), Philippine Game Developers Community (PGDC), Philippine Flash ActionScripters (Phlashers) and Philippine Internet Freedom Alliance (PIFA).

Bill providing free Wi-Fi connection in PH public places approved

The House of Representatives has approved on third and final reading a bill providing free Wi-Fi connection in all public spaces in the country.
House Bill 5791, titled “An Act providing free public wireless Internet access in public buildings, terminals, parks and plazas throughout the country”, was approved by all 211 solons present on the floor on Tuesday.
According to the bill, all public spaces – government offices (national government offices, regional and satellite offices, provincial capitols and municipal halls), state universities and colleges, parks and plazas, public hospitals, and public transportation terminals like airports, seapoarts and bus stations – will be provided with stable broadband hotspots for free.

The bill wants all public spaces be installed with wireless Internet connection within two years after the implementation of the bill if approved into law.
The bill said the Internet should not be restricted with passwords, unless necessary to avoid security risks. In cases of restricting access, the netizen should still be provided with the password.
The free Wi-Fi connection should also not be used to collect personal information from the public, the bill said.
The Information and Communications Technology Office of the Department of Science and Technology is the lead agency to provide the Internet connectivity required under the bill.
If the DOST is unable to provide the wireless Internet connection, the commercial Internet service providers would be tapped to provide the free services.
The authors of the bill are Kabataan Rep. Terry Ridon, Camiguin Rep. Xavier Jesus D. Romualdo, Buhay Rep. Mariano Michael M. Velarde Jr., Cavite Rep. Francis Gerald Aguinaldo Abaya, Makati Rep. Monique Yazmin Q. Lagdameo, Act Teachers Rep. Antonio L. Tinio, and Abakada Rep. Jonathan A. Dela Cruz.
The country is known to suffer from one of the slowest but most expensive Internet connection in Asia.
According to the latest household download index by Internet broadband testing company Ookla, the country has the second slowest download speed in Asia at 3.64 megabit per second (mbps), next to Afghanistan with 2.52 mbps. The country ranked 176th out of 202 countries with an average download speed of 3.64 megabit per second (mbps), below the average broadband speed of 23.3 mbps.
Menwhile, the Philippines ranked 178th in terms of upload speed at 1.54 mbps, way below the average of 10.6 mbps.
Internet in the Philippines is also one of the most expensive with an average value of $18.19 per mbps, exceeding the average global cost of $5.21. The recent Ookla speed test compared and ranked broadband speeds from April 18 to May 17.

PLDT eyes 2nd cable link, to invest $100m

Philippine Long Distance Telephone Co. plans to invest up to $100 million to build a second international cable landing to the US to support the rising demand for high-speed broadband.

“We are still in the planning stage for our second international cable landing to the US. The investment could range between $50 million and $100 million,” PLDT International Network vice president Gene Sanchez said.

“We are targeting to sign the memorandum of understanding within the year. It’s going to be a consortium of telecom companies,” he added.

Sanchez said the company was looking at Daet in Camarines Norte or Batangas as landing station in the Philippines.

PLDT’s first international cable landing to the US was the $550-million Asia-America Gateway, a 20,000-kilometer high-bandwidth optical fiber linking Southeast Asia to the US. PLDT contributed $50 million to the project.

The AAG consortium consists of 19 parties providing connectivity among the Philippines, Malaysia, Singapore, Thailand, Brunei Darussalam, Vietnam, Hong Kong SAR, Guam, Hawaii and the US West Coast. The facility also supplied seamless interconnection with other major cable systems connecting Europe, Australia, other parts of Asia and Africa and using Dense Wavelength Division Multiplexing technology to provide upgradeable, future-proof transmission facilities for telecommunications traffic.

PLDT leads the country among providers with the most number of international cables as well as landing stations. The AAG cable will be PLDT’s fourth international cable link up for upgrade to 100G technology, following the Asia Pacific Cable Network 2 and the Japan-US Cable system. The Asia Submarine Cable Express 100G upgrade is ongoing.

“We’ve always anticipated the need to constantly increase our capacity especially in serving the country’s leading industries given their demand for a resilient, low latency, and expansive data-driven network such as the BPO and outsourcing industries,” said PLDT head of Enterprise, International and Carrier Business Eric Alberto earlier.

PLDT was also the first network operator in the Philippines to deploy 100G in its domestic fiber optic network. When it was launched in 2012, the Philippines rose in leadership position in Asia-Pacific, among only a handful of other countries in the region to deploy 100G technology in its domestic network.

PLDT by the end of 2014, PLDT had an additional 15,000 kilometers of new fiber optic cable facilities with an estimated investment of over P1 billion to reach nearly 100,000 kilometers of fiber optic cables laid out to meet the surge of expected data traffic, more than four times the competition.

PLDT earlier reported core profit, which excludes foreign exchange transactions and other non-recurring items, of P9.3 billion in the first quarter from P9.8 billion last year.

Net profit was nearly flat at P9.39 billion in the January-to-March period, as revenue stagnated at P42.6 billion. Service revenue dipped 2 percent to P40.5 billion in the quarter, following the drop in short messaging service and voice revenues.

PLDT said wireless service revenues slid 4 percent to P27.9 billion in the first quarter from P29 billion last year.

Small steps leading to a giant leap?

Good news first. The government has taken the first step to consolidate all of its agencies involved in information and communications technology.

The Senate has passed its version of a law which would establish a Department of Information and Communication (DICT), separate and distinct from existing government agencies, and would take the role of promoting information and communication technology (ICT) across the country, both in the public and private sectors.

This ICT function is currently within the mandate of the Department of Transportation and Communications (DOTC); when the bill becomes law, the DOTC will focus only on transportation, which already is an area that requires its full concentration.

Under the proposed DICT law, all other existing ICT functions in other government agencies, including the Department of Science and Technology, will also cease to exist.

Affected agencies and government offices are: the Information and Communications Technology Office, the National Computer Center, the National Computer Institute, the Telecommunications Office, and the National Telecommunications Training Institute.

Three other agencies, namely the National Telecommunications Commission, the National Privacy Commission and the Cybercrime Investigation and Coordination Center, would also be linked to the DICT to enhance the country’s fight against cybercrimes.


More legislative work needed
The bad news is the House is still not ready to pass its counterpart version, a move that is a precursor to bicameral meetings, and finally, the passage of the law.

The Philippines could well be one of the last countries in the world in this day and age which has both transportation and communications under one major government body.

Let’s hope this initiative to separate the functions of transportation and ICT, which was first proposed during the previous administration, will finally push through during P-Noy’s term given the need for the country to have a single agency focused on ICT-related concerns.

Martial law legacy
Born in 1979 during the martial law regime as the Ministry of Transportation and Communications (MOTC), it formerly shared one umbrella known as the Ministry of Public Works, Transportation and Communications. The public works function was then moved to the Ministry of Public Works and Highways.

The MOTC was already partial to transportation-related functions, counting as its first major projects the Light Rail Transit System, a computer-controlled traffic lights system, and the Manila International Airport (now Ninoy Aquino International Airport).

Other major projects included the establishment of a motor vehicle registration and control system, and the introduction of permanent vehicle license plates and the staggered registration system. A bus leasing program was also introduced to add 1,000 new buses in Metro Manila.

The operation of the Metro Manila Transit Corporation was also expanded and the rehabilitation of the Manila South Line of the Philippine National Railways serving the Bicol Region was initiated.

Clearly, just by looking at these starting concerns, the MOTC (which eventually became the Department of Transportation and Communications after the martial law days) had its hands full.

Free Wi-Fi
Another spot of good news, if just for the fact the purpose is laudable, is the initiative by the DOST’s Information and Communications Technology Office to provide free Wi-Fi access for the whole country in public areas.

The listed areas, in order of priority, are plazas and parks, public primary and secondary central schools, libraries, rural health units and government hospitals, state universities and colleges, train stations of the MRT and LRT systems, airports and seaports, city and municipal halls, and national government offices.

At first glance, I would question plazas and parks as being the priority in the list. I would have thought schools would be best served first, or health centers, or local and national government offices.

Reminds me of the scandalous national broadband deal involving the Chinese firm ZTE.

Pa-pogi DOST initiative?

The underlying reason should be not to provide the public per se free Wi-Fi access since this would be a waste of time, effort, and finances – clearly misguided reasoning given the current conditions of the ICT sector in the Philippines.

Unless, of course, this was a pa-pogi initiative by DOST Sec. Mario Montejo, politically motivated either by the upcoming 2016 elections or the passage into law of a DICT.

There is seemingly a strong financial reason for government to undertake its own free Wi-Fi project given the huge amounts government pays to private telecommunications service providers, on top of what public servants dish out from their own pockets.

Enabling a government Wi-Fi system, even if the speed access is severely limited at first, could still prove to be beneficial just as long as the end goal would be to continually upgrade, improve, and expand the system to cover more essential public spaces.

Stronger broadband
But more than free Wi-Fi, government needs to seriously look at its own broadband backbone to connect all its offices under one network at a significantly lower cost and hopefully improved connectivity.

So far, South Korea has been the only country that has managed to structure its broadband services so that it is now regarded as a model for empowering its citizens to securing access to the Internet at very affordable rates.

The DICT that will be formed should make Internet access available to more and more Filipinos, especially now the country is emerging as one of the hottest economies in the world.

PLDT allots P26 B for wireless capex

Dominant carrier Philippine Long Distance Telephone Co. (PLDT) is spending P26 billion for the capital expenditures of its wireless business this year amid the segment’s slowing revenue contribution.

The budget allocation for its wireless business accounts for 66.7 percent of the total P39-billion capital expenditures of the PLDT Group for 2015.

In its annual report submitted to the Philippine Stock Exchange (PSE), PLDT said capital spending for its wireless segment would focus on building out coverage, leveraging the capabilities of its newly modernized network and expanding 3G, 4G, and LTE (long term evolution) including its backhaul and wireless broadband networks in order to enhance data transmission capabilities.

PLDT added that it intends to enhance network and platforms infrastructure and systems to support solutions deployment, campaign analytics, and service delivery to enable customized and targeted services.

The company pointed out that it would also further expand mainstream services and integration with the PLDT Group core and transmission network to increase penetration particularly in the provinces to achieve greater business benefits from a closely synergized environment.

The share of the wireless business in the total revenues of the PLDT Group has been declining steadily to 64 percent last year from 66 percent in 2012.


PLDT’s cellular subscriber base through Smart Communications Inc. and Digitel Mobile Philippines Inc. (Sun Cellular) reached 69.86 million last year.

Cellular penetration in the Philippines increased to approximately 114 percent last year from 108 percent in 2013 due to the existence of subscribers owning multiple SIM cards.

On the other hand, the listed telecommunications provider earmarked P13 billion for its fixed line segment accounting for 33.3 percent of the PLDT Group’s total capital expenditures this year.

For its fixed line segment, PLDT said it would continue the build-out and upgrade of broadband data and IP infrastructures, fixed line data services, expanding transmission network, increasing international bandwidth capacity, and network maintenance.

PLDT’s fixed line business offers local exchange, international long distance, national long distance, data and other network and miscellaneous services had a subscriber base of 2.21 million last year.

The segment’s contribution to the total service revenues of the PLDT Group has been increasing to 36 percent last year from 34 percent in 2012 due to the increase in data and other network service revenues in recent years.

Cignal targets 1M subscribers by yearend

CIGNAL Digital TV is targeting a subscriber base of one million by the end of the year.
Cignal Digital TV owner Manuel Pangilinan told reporters they expect to hit one million subscribers by the end of 2015 after registering 845,000 subscribers as of the end of last year.
The company’s biggest competitor is Sky Cable Corp., the pay TV arm of ABS-CBN Corp. Sky Cable reportedly has a current subscriber base of 800,000 and is targeting to hit one million subscribers in two years’ time.
In 2013 Cignal introduced Cignal TV-To-Go, which allows viewers to watch real-time broadcast feeds of Cignal channels on their broadband-connected smartphones or tablets.
With the introduction of this new offering, Cignal said it expects to attract 100,000 additional subscribers this year.
Cignal-TV-To-Go represents the PLDT Group’s first multimedia, multi-screen answer to evolve side-by-side with technology and the growing needs of its subscribers.
Cignal is owned by MediaScape, a wholly owned subsidiary of MediaQuest Holdings Inc. under the PLDT Beneficial Trust Fund.
Meanwhile, Cignal’s Over-The-Top service currently brings 13 premium channels to smartphones and tablets.
The beta phase is offered free of charge to all Cignal postpaid subscribers who have Android devices on the broadband networks of Smart Communications and Philippine Long Distance Telephone Co. (PLDT).
Cignal now claims to be the Philippines’ premier subscription-based direct-to-home satellite television provider that offers high-definition TV and superior audio.
At present, Cignal’s subscriber makeup is 80-percent prepaid and 20-percent postpaid.
For subscribers to receive Cignal broadcasts, they must acquire upon subscription the satellite dish antenna, remote control and the set-top box or integrated receiver-decoder.
Cignal’s prepaid electronic loading system is powered by the prepaid loading platform of Smart Communications, which forms part of the PLDT Group.
Cignal Digital TV uses the DVB-S2 digital television broadcast standard to accommodate standard-definition and high-definition television broadcasts, as well as interactive services offered on its satellite TV service.

Sky Cable spending P1.5-P2 B to sustain broadband growth

Sky Cable Corp., the pay TV arm of ABS-CBN Corp., is spending between P1.5 billion and P2 billion for its capital expenditures this year to help sustain the strong growth in its broadband service.

SkyCable chief operating officer Rodrigo Montinola said in an interview with reporters that the amount would be used to expand its pay TV business nationwide as it sees subscribers hitting one million over the next 24 months from the current level of 800,000.

“I think for what is covered by cable, the mid to upper end of the market we have satisfied with the way we cover the market. Our objective is to basically cover the entire country as well so we can also provide the content in cable to other customers,” Montinola said.

Montinola pointed out that half of the budget would be allocated to expand the service of Sky Broadband in major cities nationwide.

“Broadband is obviously growing much faster in terms of rate. Right now we are about 100,000 and we are growing roughly at 20 to 25 percent year-on-year and we expect that trajectory to continue,” he said.

According to Montinola, only 15 percent of the TV population in the Philippines are pay TV subscribers that is expected to increase with the continued improvement in the country’s gross domestic product (GDP) growth rate.

“Currently the penetration rate for pay TV is just 15 percent. As the economy grows, people who cannot afford to do the monthly payments would be finally able to do that. So I think there is still room for growth there,” he said.

Meanwhile, SkyCable launched the Sky On-Demand service to allow subscribers to catch-up on their missed episodes or relive their favorite movies directly on TV.

Made possible by the impressive and growing video-on-demand library of iWant TV, SKY On-Demand allows every member of the family to catch-up on episodes of local and foreign cable TV shows using their big TV screen at home.

The newly-launched service runs on the most advanced digibox to date – harnessing the capabilities of SkyCable and Sky Broadband subscriptions to utilize the popular video streaming site, iWant TV.

Digital Turbine Expands Relationship with Smart Communications

Digital Turbine APPS, +0.61% a leading provider of mobile technology solutions, announced today that it has expanded its solution offering with Smart Communications, Inc. (Smart) for the deployment of Digital Turbine IQ™ and Digital Turbine Marketplace™ to distribute EA Mobile Games and Applications. This multi-year agreement will provide content, games and application delivery to the more than 69 million combined subscribers of Smart and Digitel Mobile Philippines Inc. (DMPI) branded Sun Cellular, both wireless units of PLDT PHI, +0.36% (pse:TEL). The program is expected to launch within the next 90 days.

"We are excited to officially announce the expansion of our relationship with Smart Communications and Digitel Mobile Philippines Inc. through the addition of Digital Turbine IQ™ and Digital Turbine Marketplace™ as well as the existing Digital Turbine Pay product to their subscribers," said Bill Stone, Chief Executive Officer of Digital Turbine. "IQ & Marketplace will allow Smart Communications to deliver relevant, targeted content delivery to their subscriber base including games and applications. This deepened integration will allow more effective monetization solutions on current and new revenue while creating a cohesive content experience for their subscribers."

Digital Turbine IQ offers an easy way to search and organize apps and games across categories while providing relevant recommendations based on a subscribers current content usage. This added feature to Smart's subscriber base will provide smarter organization, better search capabilities, and more seamless downloads.

Digital Turbine Marketplace is a robust application and content store that can be deployed by both OEMs and Carriers to provide rich marketplace experiences in driving discovery of apps, games and music. Smart Communications will deploy Marketplace to their subscriber base for all games, content and apps.

"We believe that Digital Turbine IQ™ will allow us to provide a more meaningful and relevant content user experience," said Mellissa Limcaoco, First Vice President of Smart. "As our subscribers are discovering more digital content, we want to provide our users with the best experience and most value."

About Digital TurbineDigital Turbine works at the convergence of media and mobile communications, delivering end-to-end products and solutions for mobile operators, device OEMs and other third parties to enable them to effectively monetize mobile content. The company's products include DT Ignite, a mobile device management solution with targeted app distribution capabilities, DT IQ, a customized user experience and app discovery tool, DT Marketplace, an application and content store, and DT Pay, a content management and mobile payment solution. Headquartered in Austin, Texas with global offices in Berlin, Singapore, Sydney and Tel Aviv, Digital Turbine's solutions are used by more than 31 million customers each month across more than 20 global operators. For additional information, visit www.digitalturbine.com.

About Smart Communications, Inc. (Smart)Smart Communications, Inc. (Smart) is the Philippines' leading wireless services provider with 69 million subscribers on its GSM network as of end-September 2014. Smart has built a reputation for innovation, having introduced world-first wireless offerings such as Smart Money, Smart Load, Smart Padala, and the Netphone. Smart offers 3G, HSPA+, and LTE services, while its satellite service Smart Link provides communications to the global maritime industry. Smart Broadband, Inc., a wholly-owned subsidiary, offers a wireless broadband service, Smart Broadband, with over 2 million subscribers. Smart is a wholly owned subsidiary of the Philippines' leading telecommunications carrier, the Philippine Long Distance Telephone Company.

Forward-Looking Statements Statements in this news release concerning future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including statements about timing of the company's launch in Slovakia with Deutsche Telecom and its ability to launch in additional markets are forward-looking statements that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such statements.  These factors include the inherent and deal-specific challenges in converting discussions with carriers and other business partners into actual contractual relationships, product acceptance new products such as the DT product suite in a competitive marketplace, the potential for unforeseen or underestimated cash requirements or liabilities, the company's ability as a smaller company to manage international operations, varying and often unpredictable levels of orders, the challenges inherent in technology development necessary to maintain the company's competitive advantage such as adherence to release schedules and the costs and time required for finalization and gaining market acceptance of new products, changes in economic conditions and market demand, rapid and complex changes occurring in the mobile marketplace, pricing and other activities by competitors, and other risks including those described from time to time in Mandalay Digital Group's filings on Forms 10-K and 10-Q with the Securities and Exchange Commission (SEC), press releases and other communications.

5 factors to consider before applying for postpaid broadband

Internet connection is now becoming a necessity more than a luxury. Most Filipino households nowadays have their own Internet connection at home, and most commercial establishments offer free Wi-Fi access to entice customers.

With the rise of Internet use, broadband options in the market have been increasing over time as Internet speed becomes a big factor and unlimited data plans are prevailing. Before you apply for a broadband postpaid plan, consider the following:

Contract period

When you sign up for a broadband plan in the Philippines, the plan can be locked to your name for 12 months, 18 months, 24 months, and 30 months. Usually, when you finish the contract, there’s a certain loyalty reward like rebate or sometimes free gadget you can claim upon approval of your application. When you’re under a contract, you’re not allowed to change your plan, all the more downgrade it. You have to wait for the end of your contract before you do any alterations. Carefully consider the broadband contracts because you will have to pay the remaining months if you intend to cut your contact before the term ends.

Speed

It doesn’t make sense to get an expensive, high-speed Internet of 10 mbps (Megabits per second) when what you only do with it is just email and network on social media. But, if you have 5 computers at home, it is, and it may even be cost-effective for you.

One Mbps of speed is okay for small-bandwidth websites but will go slow when you download big files. The usual speed in broadband packages is 1 Mbps, 2 Mbps, 3 Mbps, 4 Mbps, 5 Mbps and 10 Mbps. When considering speed, you should take note of the number of users who will connect and the Internet activity of each. Ask your chosen Internet service provider which plans suit your needs.

Data

Because of high demand here in the country (and other countries with high Internet usage), unlimited use of data has been marketed by telecommunications companies. Despite the publicized dismay of the consumers because of the Fair Use Policy implemented in some countries all over the world, including the Philippines, people are still patronizing the limited unlimited services offered by the providers.

After hitting a daily or monthly bandwidth limit set by the provider, the subscriber can still access the web, but will experience browsing at slower speeds. It can massively affect media streaming and downloading. The key is to compare the data charges of each provider and the scope of the so-called unlimited data plans.

Signal

Always ask your prospective broadband provider to check signal in your area. Sometimes, a certain network works best in a specific area in your city but will not work as good when you’re in a different place. Ask your provider if your area is a great location for their services.

Price

Cheapest is not always the best. Check out all the pros and cons before applying for an Internet plan. The cheapest may be fit for your budget, but will not be cost-effective if you need a bigger bandwidth or bigger amount of data or more devices to connect. Monthly cost of broadband ranges from P899 to P2,399 and usually depends on the factors mentioned above.