February 15th, 2006 |
Smart did a soft launch yesterday of 3G, the first operator in the country to offer such services, outmanuevering Globe, the second largest cellular wireless operator. As Butch Jimenez, Jr. puts it, “a knockout punch” against the competition. Video related services are offered free of charge for the meantime but no definite date was set on when actual billing will be done. What’s sure now is that subscribers can check out these services, try out and experience the promises of 3G.
Initially, key areas in Metro Manila, and key cities like Cebu City, Boracay and Kalibo in Aklan, Davao, Baguio City and Iloilo are 3G ready and subscribers with 3G phones, especially postpaid subs can try this out.
On the other hand, its fortunate to be under the employ of the company. Test units of Nokia 6680 were provided to us so that we can also experience the new technology, test it out and report our experiences to the technical helpdesk.
As for the readiness of the Philippine market, that is debatable. Just a few months ago when the telecom regulator, National Telecommunications Commission (NTC) started voicing out the bidding out of 3G frequencies, established operators were resistant saying that the market was not ready. On the otherhand, 3G handset equipment and handset vendors are releasing reports purporting the growth of 3G in Asia as well as the readiness of the Filipinos. Of course each party has their own reasons and motives: the established telecom operators don’t want to plunk in huge investments on a technology that is primarily SMS based or the vendors who would want to sell their equipment.
But then the NTC awarded 4 frequencies out of 5 to three established operators and 1 newbie in the field. Other entrants are still scrambling to get the fifth license and two have already been disqualified. Both Globe and Smart have already conducted their own marketing hype and demos but its only the latter who has really made it to the launching.
Is the market ready? Sure, there are lots of subscribers who have 3G phones already in the network but are they prepared to pay the extra peso for the purported rich services that comes with the technology offering? In times of hardships, even if the peso is appreciating, people would still want to communicate but are already mindful of the expenses they have on telecom services. That’s why the unlimited promos are very popular. Its also a known that the wireless telecom companies are experiencing tapering revenues and subscriber base. There will still be subscribers who will be interested with it: corporate rats, techgeeks and social standing aware people would want to avail but they just compose a small percentage that will contribute to the revenue stream of these service providers. Another thing, content is still small and remains to be seen if the richness, as what these providers say, can sustain the interest of the people.
2G will still be the dominant revenue earner for telecom companies. Not 3G. These providers are aware of it. But eventually, after a few years, when the peoples pockets will be ready and costs are low, it will take off.
by the way, its my sister Elaine’s birthday.
Happy birthday!
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