RP’s texting report card shows lead

A lot has been already said about the phenomena called "texting" in the Philippines, or what is better known in other countries as SMS. SMS has been touted as the most successful wireless data service that was brought about not by sheer genius on the carriers’ part, but because of the flexibility and affordability of communication that it provided the market. Unlike WAP (Wireless Application Protocol), which the telcos heavily marketed, SMS was just started out as a free service that eventually caught on. It’s now commonplace to witness kids typing on their mobile phone keypads even without looking, or watching a pedestrian walk onto a post as his attention is completely focused on his phone’s display as he strolls the street. In fact, this service has gained much prominence that both PLDT and Globe Telecom just recently introduced SMS for their fixed-lines. There has been a long drought of stuff we Filipinos can really brag about until recently anyways and such, I’ve decided to update you on the latest wireless mobile data figures that global financial services firm Merrill Lynch released in a recent research study.

The Philippines leads the wireless pack in Asia with an average of 11.2 messages sent daily per user. Now with at least 10 million local mobile users, simple math will put us generating at least 110 million messages daily. Our lead, I would say, is overwhelming, considering that the next in ranking would be Singapore, New Zealand and Australia with 2.5, 2.5 and 1.43 messages, respectively. Amazing, you will agree, considering that mobile penetration rates in these three countries are all about 60 percent while ours is still at a measly 9 percent. This will roughly translate into about one out of 10 Filipinos having a mobile phone. Do expect our penetration numbers to play catch-up quickly though as new handset prices come down further, the second-hand market further expands, our huge youth market further adopts, the service continues to be affordable, more practical and innovative applications are released, and newer enhanced SMS technologies such as EMS (enhanced messaging service, which allows melodies, animation and graphics in a text message) and MMS (multimedia messaging service, which provides streaming video and sound) make their debut this year.

Contrary to the massive complaints led by the consumer sector, the Philippines still remains almost the cheapest in the world when it comes to cost per text message sent. Only to be bested by China, because of sheer economies of scale, no doubt, at US$0.01 per message compared to the Philippine’s US$0.02 per message. In other countries, the costs are as follows: Australia, $0.11; Hong Kong, $0.03; India, $0.03; Malaysia, $0.03; Thailand, $0.04; Europe, $0.09; and US, $0.16. I am coming to the rescue of the telcos here, as I believe that their current tariff structures are fair and reflect a nominal return on their investment. I don’t know if the consumer public knows it, but our local telecom companies have sunk in roughly US$1 billion to provide us with a GSM network. This is a business, and like any other business, the operators must be allowed to recoup their investments for them to be able to further provide their subscribers with better and more advanced wireless services in the coming years. If the general public is not willing to pay for the quality service it demands, so who then will foot the bill?

According to the study, excluding the Philippines, SMS revenues in Asia only consist of a minor percentage of – between 1 percent and 5 percent – of the telcos’ revenues due to diverse markets, regulations and immense competition. In Europe, it is between 5 and 10 percent. The Philippines, in comparison, has the highest in the world at 22 percent. Clearly, SMS has penetrated the mass markets and would distinctly demonstrate the power of the network effect. "We do not believe that SMS will cannibalize voice traffic, rather it is a complement to it and is likely to encourage an increase in traffic for both mediums," the study said. The Philippines is thus, classified, alongside Singapore, Korea and China, as countries with the edge in adapting to other higher speed data and value-added services. Notwithstanding the costs of handsets and delays in the deployment of our local 2.5G and 3G infrastructure, our countrymen may be in a better position to enjoy surfing the Internet on their mobile phones as compared to the multi-platform American market in the near future.

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In lieu of the over-commercialized Valentine’s revelry which I have never been a staunch supporter of, I’ve decided to relate this horrific dating experience which I am constantly reminded of everytime this time of the year comes along. During my short four-year residence in San Francisco sometime in the mid-80s, I did a favor for a friend which I knew I would regret. I reluctantly agreed to go on a blind date with her cousin, and at Valentine’s Day at that! Call me unromantic if you please, but it was simply the worse day of the year to go out because of the crazy vehicular traffic, overcrowded restaurants with poor service and the pretentious atmosphere of romance that had been artificially hyped up. Also, if someone was actually looking for a date for Valentine, there must be something massively wrong.

I started the night with such a sore disposition. My date’s neighborhood was at a location that probably was unchartered territory and exuded the ambiance of the ghettos. After getting lost for a good hour, I finally found her house after being guided in by a low riding Impala with five friendly Hispanics. I held my breath and rang the doorbell. Expecting to be greeted by the "thing," the door opened up and my jaw dropped when in front of me was a babe of an angel straight out of Elle or Cosmo. We proceeded to a neighborhood restaurant of her choice and quickly got a table as she seemed to be a regular. In the dim light I then noticed a patch on her shoulder; when I asked her about it she casually replied that she was stabbed by her neighbor whom she had startled while he was conducting business a few days earlier. Yup, her neighbor was a drug dealer. She then proceeded to take a mini cigar out of her purse and started to puff away. Feeling nauseated by the smoke, I had to excuse myself for the restroom to get some air. When I came back five minutes later, there in my seat was this biker fellow whom she was torridly kissing with. To my dismay, the he was a she! I proceeded to coolly introduce myself and we all sat down for a hearty meal which I ended up paying for. Both of my guests then started puffing away once more on their cigars. This was my cue to cut my losses and excuse myself for the evening. Upon exiting the establishment, I noticed a crowd huddled in the vicinity where my car was parked. Upon reaching it, I was aghast at the sight of my car’s convertible roof all cut up and my car stereo missing. From the recollection of witnesses, a low riding Impala with five Hispanics on board was seen leaving the crime scene in a rush. Can you beat that?! Send me a note. Happy Valentine’s Day!

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I would like to thank Melannie Arroyo of CNN for featuring this column and Filipino-made wireless application Crushcow in a recent episode of E-Biz Asia’s special on wireless technology. You made us Filipinos proud! I have gotten many great reviews on your segment. More power to you!

Check out www.crushcow.com now or send "CRUSHCOW" to 2343 from Globe mobile phones. Consult the site for info on connectivity with other mobile carriers.

(Patrick Garcia is managing director of Bidshot Wireless Services. For comments or suggestions, text your message to 233011(Globe) or 243011(Smart) or e-mail [email protected].)