Globe Telecom recently introduced their unlimited local call and text within the TouchMobile (TM) network via the Todo Text and Todo Tawag Text promo.  To join, a TM subscriber has to have at least P51 of prepaid load (for the unlimited text to TM subscribers for 5 days) or P301 (for the unlimited local call and text to TM subscribers for 30 days).  The user needs to send a command (TM 50 or TM 300) to 2824 afterwhich an activation message will be sent.  Promo Duration is from March 8 to April 7, 2005

Smart and Talk N' Text (TNT) on the other hand call their unlimited call and text promo the 25/8 Unlimited, obviously to downplay the 24/7 brand of SunCell.  To avail of the 25/8 promo, the procedure is somewhat the same with TM except that Smart/TNT is offering P60 for unlimited text for 6 days and P115 for unlimited calls for 10 days.

As for Sun Cellular’s 24/7 service,  they will adjust their rates from P250 to P300 a month of unlimited call and text. However, they will retain the P100 fee but will shorten the number of days from 10 days to 7 days.  Sun Cellular will also offer a new unlimited text service for one month at P150 and P50 for seven days.

Now let us analyze the situation :

With these new offerings in place, I believe that Globe/TM will stand to benefit the most among the three.  Why do you think the Ayala group offered only TM and did not include Globe?  Because Globe is a postpaid dominated users while TM is prepaid.  So Globe will continously enjoy the revenues from its postpaid users while offering the unlimited service for TM will definitely increase their subscriber base.  On the other hand, Smart/TNT is a prepaid country.  They had to offer their unlimited service because their subscriber uptake has been affected with the SunCell 24/7 service, and will be affected more by the TM offer.

The most clever strategist among the 3 is Smart/TNT.  They waited for both SunCell and TM to announce their adjustments and offerings before they announce theirs.  They priced their unlimited calls for just P115 for 10 days knowing that most prepaid subscribers cannot afford to shell out P300 right away due to their limited spending power.  And if you want to have unlimited text, you need to spend another P60 for 6 days.  That is P345 a month for unlimited call and P240 for unlimited text or a guaranteed P585 a month for both unlimited services.  You still need to spend some more to be able to call or text your friends using other networks.   A well calculated strategy I must say.  A program that offers unlimited services but can also become a potential major money earner.  As the great SunTzu said : "The good fighters of old first put themselves beyond the possibility of defeat, and then waited for an opportunity of defeating the enemy".

As for SunCell, their advantage simply burst like a bubble.  The battle has shifted from price to quality of service.  Unless they do something about their network, SunCell users may eventually move to Smart/TNT or TM.  This is the right time for SunCell to make good their promise that they are infusing new capitals to further improve their system to provide quality service to their subscribers.

My question now is this : Why did the National Telecommunications Commission (NTC) allowed Smart/TNT and Globe/TM to offer their respective unlimited services when clearly this can cause SunCell to close shop.  Can SunCell now sue Smart/TNT and Globe/TM for predatory pricing?  Another question : If Smart/TNT and Globe/TM can offer an unlimited service that makes calls and SMS more affordable, why did the NTC approved the original pricing of calls and SMS?  What kind of computation was made before?  What kind of regulatory job is this?  Aren't they supposed to protect the interest of the consumers?

I was able to talk to some mobile experts and they revealed that calls or SMS made within the same network entails ZERO cost except for expansions, marketing and operating expenses.  Throw away the bandwidth reasoning because infrastructure is a one-time fee. This is the very point why we all have to thank SunCell.  SunCell showed every Filipino that affordable calls and texting is possible and can be achieved.  Even if the 24/7 service is more of a strategic business move, it is clear that the Filipino mobile consumers are the one benefiting from all this the most.  SunCell did this hoping that it will turn the tide in their favor but at the same time knowing that their competitors can do the same which may be detrimental to their business.

If you ask me, there is enough room for 3 telecommunication players in the country, even just for the sake of keeping the 2 major players up in their toes always.  The market is still big for the 3 to share.  Just last week, Smart/TM subscribers who is availing of the 25/8 service got an uncomplete registration message.  The promo has hit some snags and customers are also complaining about the cumbersome procedure in making a call.   

What Smart/TNT and Globe/TM did is a clear demonstration of "Coope-tition".  They compete and try to outdo each other to get a bigger share of the mobile business but at the same time they cooperate in making sure that SunCell will not succeed.  If monopoly cannot be achieved, then duopoly is acceptable, but never a trio-poly. 

I will try the Smart/TNT and the TM unlimited service soon and I promise you that I will share with you my experience.  Congratulations to the clear winners here : The consumers.

Am logging off for now.  God Bless us all!!!

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