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Concerns of the
txting public
Philippine
Star
11/28/03
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 isnt 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 NTCs 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."
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