Who’s in and out in 3G license derby

3G what?

This is a common reaction to an unfamiliar concept, especially the alphanumeric ones like Y2K, P2P, triple-play, NGN, and so on.

Well, 3G is neither a new metal nor mineral in the table of elements, nor is it a glitch in the matrix. It is the accepted acronym for third generation of a new digital technology that is quite similar to high-speed Internet but applied to mobile telephony.

Yes, the current cellular technology, which is 2G (second generation) GSM (global system for mobile), can be compared to dial-up Internet. With 3G for mobile phones, you can do video calls and speedy download of huge chunks of data similar to what your computer can do on digital subscriber line (DSL).

The National Telecommunications Commission recently awarded four of five 3G licenses available to three existing mobile operators and one new player. Smart Communications Inc., Globe Telecom Inc. and Sun Cellular were naturally shoo-ins for the limited 3G play.

Cure who?

The fourth slot was given to Connectivity Unlimited Resources Inc. or CURE, controlled by Roberto Ongpin, who had been in the past closely associated as one of the promising technocrats in the Marcos administration.

CURE was chosen over other more experienced groups like Bayan Telecommunications Inc. of the Lopez group, Multi-Media Telephony Inc. of Joey de Venecia and — according to the rumor mill — Enrique Razon, and Next Mobile Inc. of Mel Velarde.

There were other small players like AZ Communications Inc. of Tonyboy Cojuangco (or so says the grapevine) and Pacific Wireless Inc. that also applied for 3G.

The questions on most people’s mind are: Why CURE? And which one, presumably with the strongest link with or with the blessing of Malacañang, will get the fifth and final slot?

CURE is apparently leveraging on rumors (which people say were being spread by the group itself although CURE is neither confirming nor denying) that it is partnering with Hong Kong’s Hutchison Ltd., one of the world’s biggest 3G players.

Hutchison is controlled by Li-kashing, one of Asia’s richest. Whether or not Hutchison is indeed on board is something that we will find out in a few weeks as CURE was ordered by the NTC to increase its paid up capital by P300 million (from the current P100 million) a month from the awarding of the 3G license last Jan. 3.

There are those speculating that Ongpin will just turn around and sell the 3G license to Hutchison eventually. That remains to be seen.

The Final Slot

So which one would get the final slot? People say it should be a toss up between BayanTel and Multi-Media, which were the only ones that passed the NTC’s criteria on technical, legal and financial capability. Yet, if we are to assess the two companies based on their proximity to the power corridors in Malacañang, Multi-Media will end up the winner.

BayanTel’s principal owner, the Lopez family, is currently not in good terms with Malacañang. Just recently, Lopez-controlled Manila Electric Co. is being pressed again to pay (on Malacañang’s imprimatur) billions of pesos in debt to National Power Corp. for violations of the 10-year contract.

Multi-Media, if indeed it is backed up by De Venecia and Razon, has unbeatable clout. AZ Communications could be a dark horse. It is supposedly being backed up by Cojuangco’s friends in Congress such as Rep. Joseph Santiago (the former finance executive of Pilipino Telephone Corp. before he was appointed chairman of NTC) and also Rep. Simeon Kintanar (former NTC chief and the action man behind the service area scheme).

Holding up

The NTC is indeed walking a tightrope on this 3G licensing issue. But if we were to look at the NTC’s recent track record, it shows that despite the pressures, the commission has been able to come up with rationale decisions.

Case in point is Sun Cellular’s 24/7 unlimited pricing offer, which major players wanted the NTC to stop. The NTC had put its foot down and allowed 24/7 to run its course, despite what we could imagine as extreme pressure coming from the giants.

There too was the voice over Internet protocol, which the big players were also opposing to be opened to other service providers, but the NTC had gone ahead with.

This 3G is another test of NTC’s mettle. It is perhaps, the biggest challenge of all because whatever this commission will decide now will greatly affect the future of Philippine telecoms.

3G future

And the future, if we will believe the hype that the major players are now trying to generate, looks extremely bright.

Now, whether they can convince Filipinos to do more with their cellphones and not just text and more importantly, to pay more for these services that average Pinoys can do without, remains the challenge.

Like with VoIP, perhaps a good market for the 3G would be the overseas Filipino workers and their families. With video calling, which is supposedly one of the landmarks of 3G, Filipinos will be able to see and hear their loved ones whenever they call.

Based on what the operators filed with the NTC, video calls can cost up to P40 a minute. Postpaid subscription can go up to as much as P10,000 a month. Information on demand could cost between 50 centavos and P50 per message while Internet access and online gaming between 2.5 centavos to P10 for every kilobyte.

The fees are not so bad, if you think about it. And competition has proved to be an effective tool in bringing down rates in the telco sector.

As long as the NTC will ensure that competition is thriving, then we can all hope that just like 2G, 3G will eventually become affordable even to average folks like us.

Poker tournament players eye Angeles City

It’s all systems go for the biggest non-wager hold’em poker tournament at Angeles City, and tournament players — both newly converts and old-timers — are setting their sights at Casino Filipino Angeles for the 4th of February battle of wits and staying power.

Branch manager Alex Ozaeta and his team are confident that with the attractive prizes at stake, local poker enthusiasts, members of the Poker Club of the Philippines, and other regulars of the tournament circuit will troop to Angeles City for this event. Those interested to join may get in touch with Casino Filipino Angeles customer relations section telephone nos. (045) 892-5073 local 119 or the Poker Club secretariat (c/o Cindy) 817-9092 or 812-0153.

Meantime, the Grand Finals of the Poker King Challenge will be held tomorrow at the Airport Casino Filipino Parañaque with the battle royale starting at 1 p.m. All 18 qualifiers, top three winners of each of the six-leg series, are expected to grind it out for four hours before the Poker King Challenge Champion 2005 emerges. Three finalists — Jessie Erwin Dy, Loy de los Santos and Mike Tyler — are representing Cebu City, the acknowledged poker town of the south. The other 15 finalists are from Metro Manila, Pampanga, Cavite and Batangas.  

Prizes won by the leg winners and at stake for the Grand Finals consist of trophies, gift items and certificates from participating sponsors namely Philippine Amusement and Gaming Corp. (Pagcor), Jack Daniels, Ralph’s Wines, Bicycle playing cards/Star Paper, Hyatt Hotel and Casino, Cinnabon, MyReviewerOnline, the Internet knowledge-builder, and the Poker Club of the Philippines.

Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at reydgamboa@yahoo.com or at reygamboa@linkedge.biz. If you wish to view the previous columns, you may visit my website at http://bizlinks.linkedge.biz.