050106: Globe beats Smart to 3G commercial launch

By Lenie Lectura
Reporter

GLOBE Telecom on Sunday started charging for its third-generation network services, a day ahead of rival Smart Communication Inc.’s May 1 commercial offering.
       Globe will charge its more than 12 million subscribers the same rates it charges for local Globe-to-Globe calls.
       Calls within Globe’s network are pegged from a low of P3.50 a minute to a high of P6.50 a minute, depending on the post-paid plan.
       Globe said all other 3G services or mobile broadband, including video streaming, would be charged at regular 2G rates. Globe head of consumer business group Ferdinand de la Cruz said existing 3G rates will apply for one month or until May 30. Depending on subscribers’ response, Globe might lower the rates starting June 1.
       “Our intent is to make rates affordable hence our peg is 2G rates. One month is an introductory approach, and we have several options to pursue as we observe take up,” said de la Cruz in an interview.
       Globe’s 3G service is available in key cities nationwide. These include the central business districts in Makati City and Ortigas in Pasig City, Binondo, Alabang, Manila, Tarlac, Dau, Urdaneta, Batangas, Baguio, Boracay and Davao.
       International video calls to Singapore, Hong Kong, Taiwan, Austria, Belgium, Croatia, Finland, Hungary, Luxemberg and Poland will be charged P0.40 a minute.
       Video streaming for local content will be free of charge.
       Globe said it is actually using a 3.5 technology, HSDPA (high-speed downlink packet access), that allows faster data transfer speeds and Internet browsing, while letting subscribers enjoy basic 3G services such as video calls and video streaming.
       Through this technology, users can easily download full-length music tracks or large video files, and experience video streaming or mobile TV. Globe has been offering 3G services to corporate subscribers since January this year.
       Globe is jointly owned by Singapore Telecommunications Ltd. and Ayala Corp.
       Smart, meanwhile, is confident that half of its more than 20 million subscribers would now subscribe to 3G services in the next 18 months.
       “We are very optimistic on this because before we start to charge subscribers for 3G services, we let them tried the service for free. Now, we will be charging 3G services at current rates. This will drive up subscription and eventually lower the cost of 3G handsets,” said Rogelio Quevedo, head for wholesale business group.
       Under the introductory pricing scheme that takes effect today, Smart 3G rates are aligned with existing 2G rates while some services, like Smart-to-Smart local video calls, would remain free of charge.
       Smart’s 3G customers can also make international video calls for the price of a regular IDD call ($0.40 a minute) to eight 3G operators in six countries, initially. These are NTT DoCoMo in Japan, CSL, Smartone and Hutchison in Hong Kong, Starhub in Singapore, Chunghwa in Taiwan, Vodafone in Germany and Mobilkom in Austria.

http://www.businessmirror.com.ph/0501/comp01.php