Smart also revealed that there are already plans to leverage the company’s worldwide alliance with countries using the I-Mode service (which includes NTT DoCoMo of Japan which has just acquired seven percent of Smart parent Philippine Long Distance Telephone Co.) in a bid to bring down the prices of 3G handsets, which are still in the over $300 range.
"Handset prices are a function of volume. If we can leverage this worldwide alliance together with NTT DoCoMo and we order our 3G handsets together, then the price of handsets will definitely go down. But even before this alliance, we expect handset prices to decline in the next couple of months. The more 3G becomes mainstay and more people use it, the better for handset prices," Smart’s head for wireless consumer division Menardo Jimenez Jr. revealed.
Smart and NTT DoCoMo earlier agreed to cooperate in the rollout of 3G services in the Philippines and have also agreed in principle to introduce DoCoMo’s mobile Internet service, "I-Mode", to Smart subscribers. NTT DoCoMo has 20 million subscribers to its 3G services.
"The addition of DoCoMo as a strategic partner will certainly enhance our ability to develop attractive 3G offerings for our market. DoCoMo’s experience in this technology is unmatched," PLDT and Smart president Napoleon Nazareno said earlier.
With the soft launch of its 3G network, Smart prepaid and postpaid subscribers with 3G-capable handsets can start enjoying Smart 3G services on a free trial basis. Through 3G, subscribers can make video calls, video streaming, high-speed Internet browsing, and special 3G content downloads. However, text messaging, multi-media messaging service (MMS), GRPS or general packet radio system, IDD and voice calls as well as downloading of regular content will follow Smart’s existing rates.
The launch comes less than a month after Smart and Nokia signed an agreement for the supply of 3G networks technology equipment and services, including the supply of 3G radio access and core network equipment.
The new service also comes less than two months after the National Telecommunications Commission (NTC) awarded Smart its 3G frequency.
Commercial launch by Smart of 3G is expected to happen within the first half of this year.
"This is another first from Smart. Simultaneous with our rapid 3G network rollout nationwide, we are taking our 3G commitment to another level by allowing our subscribers to experience for themselves as early as now this new technology," Nazareno said.
For his part, Jimenez said: "We are pleased to offer Smart 3G to our subscribers as an exciting addition to our wide array of existing 2G services. On top of video-to-video calls, our subscribers can also have a taste of content that includes video clips of popular shows, news reports, short films, movie trailers, and the like. Making the service available to our subscribers on free trial basis is our way of preparing the market for the more exciting applications that will eventually come with the technology."
Jimenez revealed that content is going to be a strong driver for the acceptance and popularity of 3G, even as he disclosed that Smart is already in talks with entertainment companies and other content providers." But of course, video calling is going to be a killer application," he said.
He also noted that while data-heavy postpaid subscribers will be the initial market of 3G, the number of prepaid subscribers with 3G phones is also high and will also be a potential market.
3G is shorthand for the next generation of mobile communications networks running on the WCDMA (wireless code division multiple access) platform. This technology allows for faster data transmission speeds, making possible high-speed data communications and mobile multimedia services such as video conferencing, audio streaming and mobile Internet.
Apart from having a postpaid or prepaid Smart SIM and a 3G-capable handset, a subscriber must also be in an area with a Smart 3G coverage to enjoy the service.
"We’re speeding up the pace of our network rollout. Todate, we already have 3G presence in key areas in Metro Manila as well as in major cities nationwide. And we expect our 3G network rollout to be as fast as we did in 2G," according to Smart’s network services division head Rolando Pena.
Smart officials disclosed that over 100 cellsites are now with 3G presence and as of 10 a.m. yesterday or two hours after the soft launch, around 60,000 to 70,000 Smart subscribers were already hitting the 3G network. "This is just the beginning. We are not even in the first phase," Jimenez, for his part, said.
Among the areas where 3G has a presence are Metro Manila, Cebu, Iloilo, Boracay, Baguio City, and Davao.
Smart expects to spend around $300 million for the 3G network rollout, about $60 million of which will be spent this year and next year.