Globe Telecom not yet keen on 3-G mobile phone services

Globe Telecom is not too keen on offering third generation (3G) mobile phone services in the immediate future due to the huge investments involved.

In an interview, Globe Telecom president Gerardo Ablaza said he hopes that 3G does not come too soon.

Even without 3G, Globe has found it necessary to invest some $750 million this year the bulk of which (80 percent) will be spent on wireless facilities. What is being offered today as digital or GSM (global system for mobile communication) is second generation (2G) mobile phone technology which allows phone users to engage in text messaging.

The company also spent $16 million recently for GPRS (general packet radio service), also known as the 2.5 generation or pilot of 3G.

GPRS, which is being offered by rival Smart Communications although at a limited pace due to commercial unavailability of handsets, allows cellular phone users to engage in mobile Internet more efficiently since the phone is connected to the Net all the time and does not need dialing up. The charges however are based on the information and service used.

Globe said that while the company is all ready and capable, the determinant of GPRS' full commercial launch is the commercial and widespread availability of handsets.

"We may start offering GPRS commercially before the end of the second quarter of this year," Ablaza said.

He said GPRS has just been introduced in the country and the entry of 3G will only divert scarce capital resources.

3G, which will require another set of handsets, is expected to be the perfect marriage of the mobile phone technology and the Internet. It will allow video conferencing, downloading of films, among other possibilities.

The capital expenditure required for the 3G network as well as investments in licensing can run up to several billions of dollars.

"We first want to study the experiences of other countries such as those in Europe. Their companies spent billions of dollars to be able to get government licensing as well as set up the infrastructure. We want to see how they can make 3G viable and profitable," he told The STAR.

Japan is expected to lead in the commercialization of 3G in May through NTT DoCoMo, as its European counterparts are still in the development stage.

Even the National Telecommunications Commission (NTC) is keeping it slow as far as 3G is concerned, aware of the experiences of other countries.

NTC Commissioner Eliseo Rio said they are not yet sure whether they will bid out the 3G licenses to operate, acknowledging the fact that this will unduly raise the cost of 3G to the detriment of the consumer.