Concerns of the txting public

Remember the nationwide furor two years ago when Smart Communications and Globe Telecom Inc. implemented a reduction by 67 percent of free text messages in pre-paid cards?

In resolving the crisis, the National Telecommunications Center (NTC) ruled that the two giant telecommunications firms were very well within their rights to reduce free text messages. As a result, the public was forced to accept the reality that they would just have to dig deeper into their pockets whenever they had to use their indispensable cellular phones.

A related development that may raise concern by the public is the recent announcement of Globe to scrap all free text messaging for small- denominated prepaid cards effective last October. Only buyers of their prepaid cards worth P200 and up were spared. Well, at least for now.

By way of an explanation, Globe reasoned "it isn’t economical to give away free text messages as the value of the prepaid card goes down, regardless of usage." Apparently, the victims of this latest squeeze are the consuming public who can only afford to acquire the lower valued prepaid cards.

Being Coy About ‘Texting’ Income

Globe and Smart say that voice service, or calls made on a mobile phone, is the only part of the business that decently earns, and that any income from "texting" pales in comparison.

It is interesting to note that in the first half of the year, the wireless phone service industry raked in P21.6-billion in gross revenues. So it goes without saying that if text messages outnumber voice calls by about 10 to one, then "texting" or short message services (SMS) must be worth more than a few billion pesos.

It looks like by downplaying the SMS or "texting" as merely value-added service and not the main core business, the telecommunication companies have managed to put that side of the business beyond the regulatory reach of NTC.

The NTC, for example, cannot implement its own directive that ordered all prepaid and Subscriber Identification Module (SIM) cards to have a validity of at least two years from the date of issue. Globe and Smart were able to convince the court that text messages are a value-added service only of the telecommunication firms, and are therefore not subject to the NTC’s regulatory powers.

More Ploys To Entice ‘Texting’ Public

Consider that, aside from reducing the number of free text messages in prepaid cards, telecom companies entice this text-crazed country through a myriad of other income-generating ploys: downloads of ring tones, phone logos and icons, and even gambling.

More recently, however, another blow was delivered to those who buy prepaid cards: low-priced prepaid cards that automatically expire after a set number of days after loading. For instance, a P30 pre-paid card expires in three days, while one costing P100 lapses just 15 days from activation.

In principle, putting expiry dates on prepaid cards is discriminatory to the customer who pays good money for a service that he is forced to use within a set prescribed time. It is downright oppressive to the average Filipino who is perennially handicapped with a limited budget when he is forced to use up his prepaid card before the set deadline. But worse, if he does not use up all his credits before the set deadline, whatever balance he has disappears in a big black hole.

It is not surprising that prepaid card users feel aggrieved while telecommunication companies are seen as happily cashing in hard-earned pesos from prepaid cards that have "expired".

More ‘Addicts’ For Productive Texting

Telecom firms are spending millions of pesos to entice more SMS usage. While those in the advertising industry gloat, there are others who feel that the thrust of all these advertising and promotions is not towards productive use of SMS. The public is being lured to become "addicts"in the use of text messaging with prospects of reward and worst of all a "chance to win daily and weekly rich prizes."

Maybe it is time for telecommunication companies to rethink their advertising and promotional programs to towards gaining more "addicts"who are knowledgeable about the more productive use of "texting."

Roadblocks To Manila Urban Renewal On TV

"Isyung Kalakalan at Iba Pa" on IBC News (4:30 p.m. and 10:30 p.m., Monday to Friday) completes today the presentation of various issues and obstacles related to the urban renewal program being implemented in the City of Manila. The "Bay Walk" at Roxas Blvd. was an instant success, but political opponents are chiding Mayor Atienza for backpedaling on the issue of the Pandacan oil depots. The Office of the Mayor, however, is confident that the oil companies will comply with the terms and conditions of the memorandum of agreement signed with the city that allowed the continued stay of the depots at Pandacan.

Mayor Atienza is also expecting a guaranty from the oil companies that the buffer zone created that now serves as park and playground is safe from toxic substances and soil pollution. What are the other concerns in the ongoing urban renewal of the City of Manila? Watch it.

‘Breaking Barriers’ With Road Board

"Breaking Barriers" on IBC (11 p.m. every Wednesday) will feature on December 3, 2003, former Congressman Danilo Suarez, vice-chairman of the Road Board. The law imposing the additional Road Users’ tax (RA8794) is now fully implemented with the Road Board, the implementing body, fully operational. Although billions of pesos have already been collected from vehicle owners since three years ago, the promised benefits are still up in the air. The Road Board recently launched "Kalye Natin, Aalagaan Natin"to kick off the road maintenance program. Is this another political gimmickry using public funds?

Join us break barriers and gain more insights into how this additional tax burden is being used or misused. Watch it.

Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. If you wish to view the previous columns, you may visit my website at http://bizlinks.linkedge.biz.