Manila Bulletin Online
Nav Bar   Sat Dec 31,2005 Navigation Nav Bar
spacer
 
spacer
spacer
spacer
spacer
spacer
spacer



 
spacer
YEAR-ENDER
spacer


Carriers flip-flop over 3G strategy

What a difference six months can make — in the country’s competitive telecommunications market.

Within this short span in 2005, the leading mobile phone operators in the country made a somersault in their plans to roll-out 3G technology in the country.

3G, or third generation celllular technology, allows high-speed data, voice, and video services for mobile phone subscribers. Also with 3G, a cellphone user can surf the Internet as if he or she has a broadband connection.

As late as June 2005, the top cellular carriers — Smart Communications and Globe Telecom — were still in their denial stage, abhorring publicly and in position papers the 3G technology that is becoming pervasive in other countries.

In numerous interviews with the media, spokesmen from both operators questioned the wisdom of introducing 3G technology when the country, they claimed, is still not ready for it.

The main argument presented was that 3G phone units were still beyond the reach of ordinary consumers.

Smart public affairs head Ramon Isberto, in a story printed in this section in June, said the price of the 3G handsets was "expensive" and their availability still a question.

"3G is basically for the high-end market. Our high-growth prospect is still in the low-end segment of the market so there’s no need for us to rush into 3G," he also said then.

At almost the same time, the legal department of Globe Telecom was busy arguing before the National Telecommunications Commission (NTC) the perils of coming out with the guidelines for the issuance of 3G licenses.

In fact, as early as April 2005 — way before the release of the NTC 3G license guidelines in August, the Ayala-owned carrier already questioned the financial capability of a 3G license applicant, Connectivity Unlimited Resources Enterprises Inc. (CURE), to install the necessary facility to operate a 3G network.

Also sometime this period, when the NTC asked the operators to submit their opinions regarding the 3G guidelines that the agency was still drafting at that time, Smart and Globe curiously took the same stance in opposing the introduction of 3G in their respective position papers.

This vehement refusal was somewhat criticized by mobile phone makers and network equipment providers who see the Philippines as one of the most vibrant mobile markets in the world.

During the CommunicAsia exhibit in Singapore last June, David Taylor, Motorola’s director for strategy and operations for mobile devices in high growth market, said, "The Philippines has to inevitably move on to 3G, I just don’t know when. That’s for operators to determine. But with 3G they could earn more; just think of the revenues from various multi-media services that the current platform does not allow."

Taylor admitted that the decision of the operators whether to embrace 3G or not was crucial because the Philippine mobile market is basically driven by them.

CHANGE OF PLANS

The pivotal point in settling the future of 3G in the country finally arrived on August 24, 2005 — the day the NTC issued Memorandum Circular No. 07082005: Rules and Regulations on the Allocation and Assignment of 3G Radio Frequency Bands.

With the release of the guidelines, the regulatory body effectively laid the policy groundwork for the implementation of 3G technology in the Philippines. It also set the rules on how and which entities can avail of the five 3G licenses that it will award.

Interested companies, seeing the huge potential of the 3G "gold rush," took no delay in applying for a license. Aside from CURE, other applicants included Next Mobile, AZ Communications Inc., Digitel Mobile Philippines Inc., and Multi-Media Telephony Inc.

Left with no option but to join the fray, Globe and Smart ultimately made their U-turns and threw in their applications as well. Within months, the two carriers — the top oppositors of 3G just a few months back — transformed into instant promoters of the technology.

First, Globe announced in August its successful 3G test run. The company said the trial calls were done in July — apparently conducted at the time while it was actively opposing the issuance of the 3G license guidelines.

"Now, 3G is upon us, and we are ready. This video call is another milestone in the evolution of Globe ­ one of many steps Globe is taking to understand and build the next generation of telecommunications technologies and services," Globe president Gerardo Ablaza said in a statement after the completion of the test run.

Later in November, Smart Communications followed suit as it conducted its own 3G trial demonstration in Cebu. To further drive home the point, it said it will invest an additional 0 million (R1.65 billion) for its 3G network.

An official statement from Smart (please separate story) has confirmed that it has been awarded a 3G license by the NTC late this month. Reports have indicated that Globe, CURE, and Digital, have also bagged their own 3G licenses. There is no news on the last remaining license but it is expected to be awarded before year-end.

With the policy and players now in place, the only thing left to be resolved is: will 3G finally get off the ground in 2006?

Printer Friendly Version spacer Email to a friend
 

spacer
OTHER INFOTECH NEWS
spacer
spacer
spacer
spacer
 

spacer




HOME | SUBSCRIBE | ADVERTISE | CONTACT US | SEARCH | ARCHIVE | FEEDBACK

FEATURES: MB WAP | MB Mobile Edition | Desktop Headlines

SECTIONS: MAIN NEWS | BUSINESS | OPINION & EDITORIAL | SPORTS | YOUTH & CAMPUS | ENTERTAINMENT | AGRICULTURE | INFOTECH | HEALTH | TOURISM | SOCIETY | METRO & NATIONAL NEWS | PROVINCIAL NEWS | MOTORING SECTIONS | SCHOOLS COLLEGES AND UNIVERSITIES | WELL BEING | TECHNEWS | TASTE | WEDDINGS | I | BOARD PASSERS |

LINKS: PHILIPPINE PANORAMA | TEMPO | CLASSIFIED ADS ONLINE | USER PRIVACY POLICY

Copyright © 2001-2005, Manila Bulletin. All Rights Reserved.

designed and developed by
Alchemy Solutions