Flat-rate telecoms becoming popular in The Philippines

11.04.2005
Von Grace S.

Charging flat rates for telecommunication services seems to be the rule rather than the exemption these days in The Philippines.

With the raving success of Digitel Mobile Philippines? Sun Cellular 24/7 Call and Text Unlimited offering, which earned the company more than 2 million subscribers in just a matter of months, other telecom firms -- both in the fixed line and mobile communications business -- have now started to offer flat rates for their voice and text messaging services.

In contrast to a per-minute charging, flat-rate pricing attaches a fixed cost for services availed within a specific time frame (as with the case of monthly unlimited text/calls) or each time a service is used, regardless of the time consumed (as with the case of ?per-call? pricing promos).

Following Sun Cellular?s 24/7 Unlimited Call and Text, Smart Communications early in March came up with its own 25/8 offering where pre-paid subscribers of both Smart and Piltel"s Talk N" Text can make calls within the system for as long and as often as they want for 115 pesos (US$2.10) over a 10-day period. They can also send short messages or text within the network for six days for 60 pesos.

Not to be outdone, Globe Telecom, in March 7, also launched its own ?buffet? services with the introduction of its ?Todo Text? and ?Todo Tawag Text? offering under the Touch Mobile brand. For a fixed cost of 50 pesos per month, Touch Mobile prepaid subscribers can now send text messages as often as they want. Likewise, they can opt for the unlimited call and text service for just 300 pesos a month or 150 pesos for 15 days.

Fixed Line

In the fixed line space, Globelines announced it has started offering toll-free NDD (national direct distance) service across the country. ?Those who will apply for a Globelines postpaid land line between March 21 to April 19, 2005 can enjoy free Globelines-to-Globelines calls anywhere in the country,? a company statement read. This means no per minute and no per call charges. This is free nationwide calls for all Globelines postpaid subscribers at no extra charge.

Globelines Marketing Head Jose Antonio T. Mapa, Jr. said what makes Globelines to Globelines Toll-Free NDD Call Promo different is it is simple and easy to use and avail. For current Globelines postpaid subscribers, all they have to do is call the customer care hot-line numbers for Luzon and Visayas and Mindanao to start experiencing toll free NDD calls.

Globelines, Innove?s residential and business brand, pioneered the One Province One Rate in 2002 and came up with the Cebu Enhanced One Province One Rate last December 13, 2004.

Meanwhile, dominant carrier Philippine Long Distance Telephone Company (PLDT), announced it is also planning to extend its 10 pesos-per-call promo until June 11. This as the number of callers, as well as the total number of calls made using the service continue to increase since its launch last February 14.

The 10 pesos-per-call promo has allowed PLDT land-line subscribers to call other PLDT subscribers nationwide as well as Smart and Talk "N Text subscribers for a flat rate of only 10 pesos per call instead of the usual per minute rate.

Retail Business Group head Butch Jimenez disclosed that requests from their subscribers to extend the promo are leading them to move in this direction. Calls to PLDT"s customer service hot-line, 171, have increased from 5,000 calls per day to over 35,000 calls per day. Most inquiries are related to the 10 pesos per call promo.

"With the market"s strong positive reaction to this offering, we are thinking of making this a permanent plan," said Jimenez.

The promo has also driven strong demand for the PLDT land line. PLDT business offices nationwide are reporting a strong uptake in applications for PLDT land-lines. "We hope to end the year with a net station gain, as against a net station loss that PLDT has experienced over the last 5 years," said Jimenez.