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Are SMS rates really down to Php0.50?

During the SONA earlier this week, Pres. Arroyo proudly announces that she was able to convince the cellular companies to drop the rate of inter-network SMS down by half — from Php1.00 to Php0.50. What she failed to mention was that this an an orchestrated gimmick.

The first tie I heard about it on TV, I thought this lady still has enough clout to convince the telcos to drop 15% to 20% of their annual revenues just to please the masses. Now that’s like a huge, huge campaign contribution. What could she have offered in exchange for that?

Yugatech 728x90 Reno7 Series

In my last month’s entry at GMANews.tv, “There was a time when SMS was free“, I mentioned how it would be impossible for telcos to offer SMS for free and it was for purely economic reasons. Dropping the SMS rates is actually a welcomed move — IF it were permanent.

But no, it’s not even a system-wide rate change. One needs to register and pay as well as maintain a certain amount of load balance in order to enjoy this price cut. So yeah, I’d call this a dud.

The promo rate for SMS covers all mobile providers — Globe and Smart and Sun and their subsidiaries — and officially started last July 28. The promo will last until October and could be earlier depending on the bottomline.

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Avatar for Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

19 Responses

  1. Avatar for eriex eriex says:

    Via a business perspective, I’d say the cellphone companies were the ones who demanded or asked for the additional requirements to avail of the lost-cost service. they won’t be able to sustain their business if they permanently pull the rates down. Of course, the government would initially push for permanent, no-registration-needed low-cost SMS, but having to consider the state that the companies would be in, they’d have to reach a compromise, or a consensus which will benefit the public and the companies at the same time. Thus, the registration protocol.

    Also, in response to previous posts on expiration of load and just double the text message rates, I’d say perhaps we look at it at a broader perspective. SMS has become one of the most useful tools not merely in “can u be my textmate” scenarios” but most especially in government and business communication. Therefore, if you double the rates, the costs for these institutions will also double. On the other hand, if you decrease the rates, then it’ll help the economy of the country as a whole since it will significantly lower their costs. If you’re worried about load expiration, perhaps it’s something you should bring up to the companies and not leave the government to do something about it. The companies have their own complaints and suggestion sections to assist you.:)

    First, before blaming anyone or pushing it all on the government, hope we all look at things thoroughly. Venues to express ourselves to the companies are available for use, and they should be the ones to assist you initially, not the government. Second, note that government does not dictate companies what to do, but collaborates with them on the best decision to execute. So, if you’re in the seat making the decision, don’t think about changing it all only to the public’s advantage.

    :)

  2. Avatar for dominik dominik says:

     

  3. Avatar for haitham158 haitham158 says:

    wow!

    amazed.. amazed.. amazed.. nice way to outsmart the public!

  4. Avatar for banana banana says:

    They are using the free sms bait to divert our attention from the short expiry date of our cellphone loads.

    The last thing I need is some idiot using free text to call me at all hours of the night with:
    Cn u b my txtm8t?

    I say, double the cost of sms and remove the load expiration date.

  5. Avatar for Joenel Umal Joenel Umal says:

    @Downloader.. sabi nila “content is king” mas mainam na tanong, pano magkaron ng utak ala-yuga, or writing skills ala-yuga..

    ako rin blog starter and nakakadugo sa ilong.. hehe

    as for the 50centavo text, “I’m sorry..” limited promo lang, sana for life na..

    @bloggista: sa hirap ng buhay ngayon dito sa pinas, mahal mag RALLY.. kelangan ng pondo, 500 per head.. haaa..aaay…

  6. Avatar for I Am Downloader I Am Downloader says:

    i agree with issai. they can generate more income in that way. people wants freebies after all.

    P.S.
    bakit #1 ang blog mo Yuga sa tech? hehe.. from a newbie’s POV.

  7. Avatar for lindtdale lindtdale says:

    Actually, its not that high compared to outher countries. Imagine US, they pay 20cents per sms message. so thats 9php per text…. 900% higher compared to us…. what do you think?

  8. Avatar for bloggista bloggista says:

    Well, instead of blaming the bugger President for all of our misfortunes, why not start rallying together behind this move. We all know the Telco’s were overpricing SMS for a long time – its time people unite and tell all these greedy buggers we’ve had enough.

  9. Avatar for Jan Alvin Jan Alvin says:

    umm, mmya na po ung solar eclipse. syang hindi ntin siya makikita dito sa pinas pero may alam akong live webcast. nasa blog ko ung link.

  10. Avatar for LiNTEK LiNTEK says:

    I was hoping that the President can make the price of fuel and rice to go down first before the SMS fee.

  11. Avatar for Kenneth Kenneth says:

    We can’t blame our current president.
    Malamang, part ito nang “show” na ginagawa nila. :lol:

  12. Avatar for issai issai says:

    why don’t them make sms free, then append advertising on the bottom. and make advertisers pay for it. just wondering.

  13. Avatar for nooknook nooknook says:

    You call it a dud, I call it “pasakay”. This comes from a president who has nothing to offer to an impoverished country but dole outs and freebies… Have the guts to even call herself an economist… Managed to even boast this SMS thing and yet did not mention a word about the MV Princess/toxic contamination and what government has done and plans to do… Oh well, we’re not lifting a finger to boot her out, I guess we deserve her and her SMS promo.

  14. Avatar for BrianB BrianB says:

    How cheap is this bugger.

    http://www.engadget.com/2008/07/31/dell-vostro-2510-laptop-pops-up-in-flier-899-for-core-2-duo-an/

    Dell vostro core2duo with nvidia for under 900 bucks!

  15. Avatar for Leo Leo says:

    nothing is free now, lol

  16. Avatar for Jan Alvin Jan Alvin says:

    Ahahaha, hindi pa kayo nasanay kay Gloria!!

  17. Avatar for jhay jhay says:

    Just goes to show how desperate she is in earning brownie points from the public. LOL

  18. Avatar for pigarotti pigarotti says:

    sounds like the president is encouraging the masses to text. and text some more. kalokohan, lol.

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