3G for all?
Last week, telecom behemoths Globe and Smart introduced the KU250 handset from electronic firm LG, joining a 12 telcos across the world in an attempt to jack up 3G usage via an “affordable handset”.
A World GSM Association press release said that the KU250 emerged winner among 19 other handsets pushed by eight competing mobile phone makers, including Nokia. Thus, the KU250s carry the “3G for All” tag on its face.
Smart is selling the KU250 at P6,290 while Globe offers it at a slighty lower price of P6,250. Initial reports say that stocks of the handset have run out in Globe business centers.
A subscriber review posted on megaforum PinoyExchange reveals that the KU250 has a batch of features that may actually attract buyers: 3G at UMTS speeds of up to 384 kbps, Bluetooth, USB connectivity, dual camera with a 1.3 megapixel main camera, expandable memory, multimedia player, and the standard MMS and GPRS, among others. The phone is said to weigh at a light 73 grams.
However two big stumbling blocks may prevent KU250’s success: handset price and the pricing of 3G services by the telcos themselves.
TXTPower argues that the price tag of P6,250-P6,290 is prohibitive.
A minimum wage earner in Metro Manila will have to save his daily wages for 23 days in order to buy a handset. The matter is worse in the provinces where the minimum wage is lower.
Students, who may use a 3G handset as an alternative way of connecting to high-speed internet, may also balk at the price, except those who come from upper middle class to upper class families.
The truth is, there is a sizeable percentage of subscribers who obtain their handsets from the grey market where prices are lower than in the telco business centers. Prices are even much lower for second-hand units. This is where the KU250 is expected to encounter stiff competition — for why buy an LG, a relatively unknown model, and not a second-hand Nokia or Sony Ericsson?
If the “3G for All” project seeks to arm the masses with a 3G handset, the KU250’s price is a failure. If the telcos want to expand 3G use from the small elite market, the pricing of the LG handset is not bound to hit the intended target.
But even if we presume that the masses and the lower middle would scrimp on more important expenses and get the KU250, another problem beckons: the price of 3G services.
Smart charges P10 per 30 minutes of internet use, be it on the old GPRS or the newer 3G. Globe meanwhile slaps usage fees of P0.15 per kilobyte. Mobility Philippines correctly points out that the Globe 3G pricing scheme is prohibitive.
Palibhasa gahaman sa tubo, the two telcos (and even upstart Sun Cellular) have refused to offer unlimited 3G or GPRS usage rates to the mass market. Thus, only the big corporations and a number from the upper middle class have availed of the mobile internet services in a big way. More importantly, the sad state of affairs have disenfranchised from the mobile cyberspace millions of OFW families whose best and quickest way to communicate with their loved ones abroad is through a mobile phone.
The country’s student population is also not encouraged to avail of 3G services as an alternative to wired broadband. Under the current Smart pricing structure, five hours of continuous 3G use will cost a minimum of P100, but only if Smart’s 3G service is uninterrupted and reliable. The probability that students will use Globe’s 3G network for their internet use is almost nil; Globe’s 3G rates are too steep, even if Globe prides itself about its HSDPA or 3.5G capability.
Globe’s joining the “3G for All” project while offering the highest mobile internet rates puts the company is either hypocrisy or double talk. Or is Globe trying to hoodwink subscribers into buying a “cheap” handset, only to surprise them with outrageously high 3G usage rates? (Mobility Philippines estimates that loading a webpage on a phone or a computer using Globe 3G will cost P40-50!)
In sum, “3G for All” is like a pie in the sky for Filipinos. It turns out that the two telcos are themselves the biggest hindrances to greater 3G use by the Filipino masa and middle class.
Photo from GSMArena.
Comments (11 comments)
I’d rather avail Smart’s service - P20/hr, rate is quite the same with internet cafe’s…
toughcookie / June 16th, 2007, 12:41 pm
“Mobility Philippines correctly points out that Smart and Globe pricing schemes for 3G are prohibitive.”
Hi, in my article “3G For All?” posted in Mobility Philippines I pointed out the Globe Telecom’s P0.15/Kb pricing was prohibitive.
With reference to Smarts P10/30 mins. I wrote:
“Smart Communications charges P10 per 30 minutes of internet use. This is equivalent to either 4-5 minutes of voice calls or ten SMS messages. The rates are reasonable, but many still consider it expensive. To me, 30 minutes of internet is worth more than 10 SMS messages. Others would find 10 SMS messages of more value. Since the P10 for 30 minute use rates are available to all their users, bringing in a low cost phone should help expand the user base.”
Robin Lim / June 19th, 2007, 7:20 am
“Mobility Philippines correctly points out that Smart and Globe pricing schemes for 3G are prohibitive.”
Hi, in my article “3G For All?” posted in Mobility Philippines I pointed out the Globe Telecom’s P0.15/Kb pricing was prohibitive.
With reference to Smarts P10/30 mins. I wrote:
“Smart Communications charges P10 per 30 minutes of internet use. This is equivalent to either 4-5 minutes of voice calls or ten SMS messages. The rates are reasonable, but many still consider it expensive. To me, 30 minutes of internet is worth more than 10 SMS messages. Others would find 10 SMS messages of more value. Since the P10 for 30 minute use rates are available to all their users, bringing in a low cost phone should help expand the user base.”
Robin Lim / June 19th, 2007, 7:20 am
now that they have been unscuccessful in their “crusade” to bring down unlimited SMS rates, txtpower trains their sites on 3G. txtpower, what makes you think you’ll be successful this time?
hreynes / June 19th, 2007, 10:16 pm
Robin, we’ve corrected that portion of the article. Keep up your good work. Thanks!
HReynes, the fight over Unlimitxt ain’t over. If its over for you, that’s your problem.
TXTPower / June 19th, 2007, 10:40 pm
txtpower, you guys really are a joke. first you lead us on a wild ride with promises. i was even one of your most ardent supporters. then your leaders, especially tonyo abandon us to concentrate on his “amo”. you leave us hanging despite countless requests by me and others to update us on what you’re doing. then it becomes clear you’re devoting your time to politics even endorsing a party list group, after redesiging your site and you expect us to believe you are doing something? read again your press release. there is nothing new in there. it’s a rehash of what happened months ago with ntc. we already know all this. the content of your press release is as useless as yesterday’s newspaper.
hreynes / June 20th, 2007, 1:47 pm
Kuya Hreyness musta na? Hehehe. Oo kuya ganon parin ang problem ng Sun. Para na akong tanga na nag-aupdate ng complaints pero hanggang ngayon wala paring pagbabago!!!! Grabe talaga ang Sun. Nanloloko tru its new SIMS. Hay kung totoo sana ang care ng Txtpower hindi sana sila nagfofocus sa isang bagay na talo na. Sana magfile sila ng complaints againts sun cellular. Ang smart millions ang nagrereklamo kasi ang hirap2x magpaunli hanggang ngayon walang improvements. Alam mo kuya gumaya rin ang smart sa Globe na nagtaas ng rates pro ang smart dinaan nila sa technical ways. For example sinasadya talaga ng smart na hindi ayusin ang system ng 258 unli nila. 12 pm palang ang reply ng 258 “SORRY HINDI MAPROCESS ANG IYONG REQUEST. MAG ALLTXT20 KA NALANG”. Nanotice mo na ang modus operande ng Smart kuya? Gusto nila na mag go sa alltxt20 ang mga users kasi 20 pesos for 1 day diba? Sa unli 15 kasi 15 lang per day ang maearn nila. Ito pa kuya ho just think of it. How come na mas una pa na naililagay sa Smartload menu ang alltxt denominations kaysa unlimited txt nila? Mas nauna sa market ang unli kaysa alltxt pro bakit anjan na sa menu ang alltxt na both alltxt and unlimited txts ginawa na nilang service? Ayan kuya obvious talaga. So kung ang mga gagong txtpower convenors are pro-consumers dapat bigyan rin nila ng pansin ang mga problem natin sa Sun at Smart diba? Inuuna pa nila ang kasong wala ng pag-aasa. Nagpapakahero ata ah. Hoy Tonyo kung totoong nag-aalala kayo sa mga cellphone users bakit ang problem at pang-aabuso ng Sun at Smart binabaliwala nyo lang? Saka kuya Henry maraming nagrereklamo na ang mga unli nila sa sun kinacut ng Sun. Ang 1 week unli ilang days lang!!!!
jobert / June 20th, 2007, 3:46 pm
What is txtpower doing to the unlitxt of Globe? Until now puro lang talk, talk, talk and no CONCRETE ACTION.
I am tired of waiting. Always same reply na txtpower is doing something about it.
If you are our consumer protector advocate, why are you getting into politics also?
Haven’t you noticed, less and less people are now checking your website. It has been idle for how many months now and with no updates on our complaints.
I hope you can do CONCRETE ACTIONS instead of talk, talk talk lang.
ong76_win2 / June 20th, 2007, 5:23 pm
Thanks for making the correction. Sorry about the double post.
Robin Lim / June 21st, 2007, 7:50 pm
sana irequest ng TXTPOWER sa globe ang unlimited use ng wap/gprs/3g dahil napakamahal ng charge nila at sa smart naman mabagal ang wap access sana maging P10 or P20 nalang per 24 hours sana magkaisa tayo sa pa request ng ganon
sgt3gger / June 24th, 2007, 4:20 pm
Wawa nmn ng txtpower! Kahit ang conflict sa atin hindi nila kayang isolve. Hoy mga gagong txtpower convenors nahihiya ba kayo sa mga taong pinaasa nyo lang? Ayan kasi dada lang kayo ng dada.
Note sa mga bumibisita dito. Nais namin malaman nyo kung gaano katanga at ka idiot ang mga txtpower convenors. Pinaasa lang nila ang mga taong umasa sa kanila. Alam nyo ba kung bakit patay na patay sila sa kaso nila sa Globe? Kasi most of those stupid convenors are Globe subscribers that’s why ganon nalang ang pagiging tying hard ng mga hangal. Lalo na ang gagong founder nila na si ANTHONY IAN CRUZ, sya ang pinakawalang kwentang founder na nakilala namin!!! Ang problema at pang-aabuso ng Smart at Sun hindi nila pinapakialaman. Palibhasa hindi sila Smart users kaya baliwala sa kanila yon. Big DAMN SA TXTPOWER GROUP!!!!
jobert / June 26th, 2007, 4:44 pm
What do you think?
You must be logged in to post a comment.