Finally, Smart’s doing the smart thing

The good news in the on-going marketing war among the cell phone companies is that finally, they are using marketing methods rather than legal remedies to gain or protect market share. Smart is finally doing the right thing by giving Sun a dose of its own medicine via an improved variation of Sun’s 24/7 promo. Smart’s "25/8" plan also offers unlimited call and text messaging.

Briefly, for P115, any Smart-branded pre-paid subscriber can make unlimited phone calls to any Smart phone for 10 days, even to those overseas. A cheaper P60 plan would offer unlimited "texting," but no free calls, for six days. The twin plan is also available to post-paid subscribers as an extra service. I also like the stipulation that "25/8" subscribers must limit their calls to five minutes each. This will ensure that the network will not collapse with the expected surge in "telebabad", a problem that is apparently plaguing Sun especially during peak hours.

It seems that Smart’s "25/8" is superior to the competition, both Sun and the muted Globe response through Innove’s Touch Mobile. Not only has Smart allocated a dedicated, separate network to handle the expected surge of both voice calls and text messages, it will also protect the network quality for the post-paid subscriber base.

Apparently, when Smart and sister company Piltel asked the National Telecom Commission to stop Sun from continuing to offer its "24/7" plan, it was just an initial knee jerk response. Sun had the plan for quite a while and neither Smart nor Globe gave it much thought. It was only later on that it became clear they were losing subscribers to that innovative Sun offering of unlimited within-network calls and text messaging.

So the lawyers took over and that is precisely how not to handle a marketing challenge. All they accomplished was to get public sympathy for Sun as the underdog with less than four-percent market share being bullied by the two giants in the industry. It was also ridiculous to accuse Sun of price cutting as a means of setting up a monopoly, given the market share position of the companies.

As I argued in this column, the role of government regulation should be markedly diminished in the new highly competitive telecom environment. With technology constantly improving, our regulators will have to keep themselves technologically abreast if they are to remain relevant and for our consumers to benefit.

The role of the regulator now is merely to allocate frequencies and to make sure the playing field is fair. For instance, the recent charge of Sun that Smart is blocking calls made from the Sun network to the Smart network is one proper subject of government intervention. Blocking interconnection is an old trick of the PLDT group. I had seen it first hand when I was involved in the BayanTel launch some years ago before Manny P’s watch.

If true, Smart should be severely fined and reprimanded by the NTC. Blocking interconnection between networks violates the spirit and the letter of the law that governs competitive behavior in the industry. That is not a valid competitive strategy at all. And it is easy to prove since there are technical ways of showing how much of the calls are blocked and the status of the circuits while this is happening.
VoIP
Speaking of government regulators and keeping pace with technology, Sen. Mar Roxas is right in asking for an inquiry on what is keeping NTC from establishing clear rules on VoIP or voice over Internet protocol. This is a new technology here but not so new abroad. There is this debate on whether it is a value added service related to the Internet or a telephony service which would limit its offering to the phone companies.

"In view of VOIP’s tremendous promise to provide more cost-effective voice calls, particularly for our small and medium enterprises and overseas workers, it has become imperative for us to review and resolve all policies hindering commercial public access to the new technology," said Roxas, chairman of the bicameral Congressional Oversight Committee on the E-Commerce Law.

VOIP allows individuals to exchange long-distance calls via computers connected to the Internet, without payment of long-distance charges to telephone companies. At present, long-distance calls are made possible through the conventional circuit switches of telephone firms although many phone companies already use VoIP but still charge consumers the usual high rates.

Hopefully, we will follow the trend abroad that allows non phone companies to offer the service as part of the Internet experience. Given the large number of overseas Pinoys who can benefit from VoIP, the failure of government to make the service available widely is a disservice to the OFWs in particular and the Pinoy consumers in general.

These are exciting times at the NTC and it is important that the commissioners are up to the challenge intellectually and philosophically. The overall spirit should be nothing less than free market. Let them compete in the market place by introducing new and innovative services that are priced aggressively. Let them buy advertising space and time, hold marketing blitzes rather than file legal briefs. Let marketing whiz kids like Boy Martirez of Smart become the new heroes.
Canadian Pinoys
I was pleasantly surprised that an old friend who is a recent immigrant to Canada drove almost two hours in slippery icy roads to see me while I was at Waterloo. Bombet Arangote used to be one of our financial analysts at Benpres Holdings and he uprooted his family to settle in Canada a couple of years ago.

It was not an easy thing for him to do, but with the birth of his first child, he figured he had to sacrifice his middle class comforts at home and venture out to the unknown in Canada. In fact, he just bought his house here when he made the decision to go. He is typical of our professional middle class who has been alienated by the quality of our nation’s leadership in recent years.

Bombet first stayed in Vancouver and it was difficult, he said. He recently moved to Toronto and this time, he is back on his career track with a financial analyst position at Sun Life. I can’t help feeling emotional about people like Bombet, who would rather stay home but found it necessary to migrate at great personal sacrifice for the future of their children.

If our politicians had any conscience left, they should take personal responsibility for this continuing assault on the middle class. Bombet is, like many others like him in Canada and elsewhere in the world, proof that the Pinoy is world class. It is only our political leadership that is tragically third world.
Reactions
I got some e-mails reacting to a previous column. The first is from Jose Amor A. Flores II, a Canadian Pinoy from Vancouver.

Great Article. Interesting point in regards we are the gentler and kinder nation. Although, I have to point out that we are as prosperous as the Americans and have a higher standard of living. As one of only three Pinoy money managers in Canada, I’ve seen the Filipino-Canadian struggle in the early years and often lead prosperous lives after five or so years of working hard.

The next one is from Bing Sison of Mississauga, Ontario.

Welcome to the land of the Cannucks. I was surprised when I read your article that you were in Canada. I used to read your article when I was back in Manila. As a new immigrant for less than two years, I have tried to catch up with The Philippine Star online.

Like many professionals who became disillusioned with the Philippine government specially during the time of Erap, I decided to migrate to Canada in my mid 40’s in search of a better future for my children. It has not been easy to adjust to the Canadian way of life specially with the cold winter weather which you have just experienced.

Skilled labor and manufacturing/factory jobs are plenty here in Canada but if you are a professional (doctor, engineer, accountant, etc.) it will be next to impossible to practice your profession. The Canadian government should seriously start doing something about this problem, which you correctly stated in your latest column.

I wish you Mabuhay and hope you could visit again.
Necklace
This one was texted by Fe dela Cruz.

Husband: (suspicious) Oy, ang ganda ng necklace mo, ah! Di ko maalala binigyan kita ni-yan.

Wife: Ah, ito? Napulot ko lang ‘to sa kotse mo kagabi.

Boo Chanco’s e-mail address is bchanco@gmail.com

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