Former NTC chief sees lower SMS messaging rates, cheaper mobile phone units

MANILA, Philippines - Text messaging cost will likely go down to as much as five centavos amid tight competition in the telecommunications industry in the next few months, a congressman said Wednesday. In an article posted on the House of Representatives website, House information and communications technology committee chairman Catanduanes Rep. Joseph Santiago said the "mounting pressure to draw in the 'last mile' of non-users" could bring down the cost of carrier-subsidized handsets with SIM cards to as low as P500. Telecom giant Philippine Long Distance Telephone Co. (PLDT), Ayala-led Globe Telecom Inc. and Gokongwei-led Digital Telecommunications Phils., Inc. are now "aggressively raiding" each other's subscribers while increasing market share by tapping those who still have no mobile phones, he said. "In any highly active markets, the more combative the rivalry, the greater the potential tangible benefits to consumers in terms of superior services and more affordable user rates," the former chief of the National Telecommunications Commission said. He cited PLDT subsidiary Smart Communications Inc.'s P20-promotional plan lets subscribers to send 110 Smart-to-Smart text messages, plus 10 messages to any non-Smart network. This, he said, provides a rate of 16 centavos. "Right now, the effective text messaging rate is already 16 to 18 centavos, based on the current promotional campaigns of service providers. Once the full force of unfettered competition is brought to bear on the market, we reckon that text messaging rates would fall some more, possibly to as low as five to 10 centavos," he said. Digitel Mobile Philippines, Inc., the subsidiary of Digitel that offers wireless network under "Sun Cellular," offers a P30-promotional combo plan that allows subscribers to send 120 Sun-to-Sun text messages, plus 40 messages to any non-Sun network. This indicates a rate of 18 centavos, he added, on top of 40 minutes of free Sun-to-Sun voice calls. -GMANews.TV