Phone Firms Balk At Order To Extend Prepaid Loads (manila Standard Today) 09 July 2009

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Philippine News -- Manila Standard Today -- Phone firms balk a...

http://www.manilastandardtoday.com/?page=news4_july9_2009

Thursday, July 9, 2009

Exchange Rate

Phisix

Closing: July 8, 2009

Closing: July 8, 2009

US$=48.30

2461.99

Up 0.04 centavos

Down 9.77 points

News stories UN agencies suspend aid work in Mindanao Vehicle sales, down 2.8% in 1st half, rebound in June Judge borrows money from trial lawyer, gets fired Phone firms balk at order to extend prepaid loads RP grants safe conduct passes to Red negotiators Cooking gas now higher by P48.40 Red Cross tax exemption unlikely Scientists claim creating human sperm using cells

Phone firms balk at order to extend prepaid loads By Fel V. Maragay LEADING mobile phone service providers yesterday refused to commit to following government orders extending the validity of their prepaid credits. At a meeting of a Senate technical working group, officials from Smart Communications, Globe Telecom and Digitel Mobile Philippines said they were still studying the impact of the new order from the National Telecommunications Commission. Last week, the commission ordered the phone companies to extend the validity of their prepaid credits starting July 19, but the telecommunications executives said they doubted if this was possible given the “technical adjustments” they would have to make. In a separate circular, the commission banned the carriers from sending unsolicited promotional or advertising messages through mobile phones, a move that market research company Nielsen Media said would shackle the growth of mobile advertising. Roy Ibay, Smart Communications senior manager, said they were surprised by the commis-sion’s twin directives.

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“We are still trying to [determine] the impact of the two circulars on our operations, although the second one is addressed to the content providers,” Ibay told newsmen after the meeting. He said they had the option to appeal to the commission to give them more time. Rodolfo Salalima, Globe Telecom’s chief legal counsel, said the new order on prepaid credits would hurt the company because it would cut profits and entail additional expense to make changes in their billing software. “The entire machinery have to be engineered to attune ourselves to the extended validity of the load,” he said.

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Salalima said the commission should consider the right of service providers under the law to realize a reasonable rate of return. He said they were likely to file a motion for reconsideration. Commission chairman Ruel Canubas ruled out the possibility of recalling the order and said the carriers had been given enough time to comply. “With the new guidelines, necessarily they have to adjust the system,” he said. Canubas said if the carriers wanted to seek a temporary restraining order, that was their right, but those defying the order would be sanctioned and fined P200 for each day of violation. Senator Mar Roxas, chairman of the committee on trade and commerce, said the order to lengthen the validity of the prepaid load was too late and not enough to address consumer demand for a fair and equitable deal from the carriers. He said his committee would push for the per-second metering on voice calls, as practiced in other countries. He welcomed the order prohibiting unsolicited promotional messages, but said there were other reforms thatmust be be implemented to protect cell phone users. At a news briefing yesterday, Nielsen Media said the new order against “push” messages would hurt the mobile advertising industry. “It will have a large impact on mobile advertising, which is a growing industry,” said Jay Bautista, executive director of the advertising research firm. Eric Barrera, a researcher at the same firm who presented the results of a study on mobile phone users, said many companies were looking at the potential of mobile advertising in the Philippines. “A mobile phone is now a multi-media device. About 61 percent of the 10.4 million residents of Mega Manila who are 10 years old and up now own cell phones,” he said. Bautista said a company using European technology was even planning to introduce a mobile advertising service that would give subscribers free voice calls and text messaging in exchange for advertising. He said the company had a pending application before the National Telecommunication Commission. “We don’t know yet if their application will be approved,” he said. Nielsen and advertising firm Trackworks disclosed the results of a survey of 100 mobile phone users, who were at the same time commuters of LRT and MRT trains, from July 4 to 6 this year. The respondents were part of the mobile panel service of Nielsen, with a total of 1,000 members. The survey found that aside from voice calls and text messages, about 30 percent of the respondents used their phones for Internet browsing, 12 percent for music, 16 percent for chat, 16 percent for e-mail, and 12 percent for games. In a separate study of MRT-LRT Travel Habits, Nielsen cited the big potential of train advertising. More than 52 percent of Filipinos in Metro Manila were mobile, it said. “About five million passengers take the MRT and LRT trains each week, and many of them are income earners who are more likely to go to malls, dine out in fast food outlets and devote time to entertainment and sports,” Bautista said. Bing Kimpo, vice president of Trackworks, said the results of the study could be used to attract more advertisers at the LRT and MRT stations. About 30 to 40 companies were already placing ads at these stations, he said. With Roderick T. dela Cruz

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