Globe Telecom (GLO)

[amcaguirre]

BAD NEWS TO DOWNLOADERS LIKE ME!

Globe moves to cap Internet data volume
04/05/2011 | 04:39 PM


Without any law to prevent its adoption, Ayala-led telco Globe Telecom has decided to invoke the “fair use" doctrine in imposing a data limit on the Internet subscription of its customer as a supposed way to curb unrestrained use of just a few broadband users.

Globe’s move, first reported by the Philippine Daily Inquirer, was contained in a press statement issued by the company over the weekend.

The data volume limit, according to the Inquirer, “would affect only users who download data in excess of 1 gigabyte a day."

By adopting a “fair use" policy, Globe said it can “promote a more responsible way of using the Internet that will ensure fair and optimum usage of its broadband services across all subscribers."

In a recent analysis, Globe said only 5 percent use 80 percent of the available broadband network bandwidth, leaving only 20 percent of the capacity to be shared by 95 percent of the remaining users.

The issue on data volume capping remains a contentious topic in the industry, with local telcos pushing the National Telecommunications Commission (NTC) to impose it as a formal regulatory rule.

The agency, however, has already announced that it will not include any provision on data capping on a circular it is currently drafting on the minimum broadband speed in the country.

This is not the first time, however, that a broadband provider has adopted a data usage ceiling. San Miguel-owned Liberty Telecoms, which operates wi-tribe, has been offering WiMax services that have data limits. Lopez-owned firm SkyCable, through its broadband service unit, also recently rolled out a 5-Mbps Internet offering with 15-GB threshold.

Saying network bandwidth is a finite resource, Globe said “it is necessary to adopt a policy that promotes responsible and fair use of the Internet to prevent abuse and misuse of services from a relatively smaller group of consumers."

http://business.inquirer.net/money/tops ... use-policy

[stryfe]

its the start of the FUP domination. . wala na lalaban e SUN lang ang opposition to the FUP all other else will follow

[bitplayer]

Analogy:
Vendor sells 1 pair of shoes each to 4 customers when vendor has only 2 pairs in inventory.
Vendor then complains that 2 customers are ABUSIVE because they collected 1 pair when the vendor was only expecting the customer to get 1 shoe each.

Replace ISP for vendor, bandwidth for shoes, and infrastructure investment for inventory. This seems to be the basic argument for FUP.

A few years back something similar happened in another industry:
Replace Pre-need company for vendor, education plan for shoes, and capitalization for inventory... and angry parents for customers.

[nanashi]

Globe opposes PLDT-Digitel deal
http://businessmirror.com.ph/home/top-n ... gitel-deal

To preserve free competition, Globe Telecom Inc. strongly urged the government to issue new antitrust laws and policies, including one that will impose stricter regulations against a dominant player, before the deal between Philippine Long Distance Telephone Co. (PLDT) and Digitel Telecommunications Philippines Inc. is closed at end-June this year.

According to Globe counsel Rodolfo Salalima, the company wrote a letter to the National Telecommunications Commission (NTC) on Wednesday, asking, among other things, that the NTC issue a memorandum defining a monopoly and with it include restrictions to protect market rivals; reassign the PLDT group’s frequencies; aggressively enforce interconnection of networks between PLDT and other carriers; and formulate a policy on IP peering, which is similar to interconnection among carriers, except that it applies to the Internet space.

When sought for comment, PLDT and Digitel said they could not comprehend this move by Globe.

“Globe is criticizing PLDT for a deal that Globe itself had sought, but failed to get it. It is now pressing the government for concessions to make up for a bid it lost,” said PLDT spokesman Mon Isberto.

When asked to elaborate, he revealed that Globe had also offered a similar deal to Digitel but the Gokongwei-led telco opted to give in to PLDT.

“We are very surprised with Globe’s sudden opposition to our deal. There were several serious telecom players that have approached us and we found PLDT’s offer most acceptable in terms of continuing and expanding Sun Cellular’s unlimited offering and other value for money products for the benefit of the Filipino consumers,” said Digitel lawyer William Pamintuan.

Another PLDT official said the issues are being raised by Globe “with much thunder and lightning” in order to gain leverage and exact concessions from PLDT.

“This is a regulatory blackmail. Globe wants to use the NTC to deliver these concessions to Globe on a silver platter,” said Ray Espinosa, PLDT head for regulatory affairs and policy.

Revisit frequency assignment

Globe’s cellular frequencies acquired as against PLDT’s now stand at a ratio of 1:3.5 in favor of PLDT, according to Globe’s Salalima.

“Such uneven distribution of the state’s scarce but powerful resource does not speak well of this commission. How does one then compete effectively when the frequency spectra, the tool for operations, are virtually all in the hands of PLDT?” said Salalima.

The PLDT-Digitel tandem gives the PLDT group a huge advantage over frequency allocation, having cornered big chunks of the bandwidth for 3G (third generation), wireless broadband and GSM (Global System for Mobile communications).

For 3G, the PLDT group’s total frequency is 35 megahertz (MHz). When broken down, Smart Communications Inc. has 15 mHz while Connectivity Unlimited Resources Inc., which Smart had acquired, and Digitel each have 10 mHz.

Globe, on the other hand, only has 10 mHz.

For Wimax, touted as the next generation after 3G, the Pangilinan-led phone firm has a total of 45 mHz while Globe has 35 mHz.

For cellular, PLDT holds 37.5 mHz but when combined with Digitel the phone giant would have a total of 47.5 mHz. Globe only has 20 mHz.

“More than simply hope, we expect the government, particularly the NTC, to act now on the PLDT-Digitel deal by, among others, implementing preemptive moves and regulations to protect the gains of RA 7925, the fair and free competition in the market place and, ultimately, the public good and welfare,” said Salalima.

Serious threat

The Globe official said the NTC must start leveling the playing field now in the name of free competition or risk a return to the monopoly of old and precisely abandoned RA [Republic Act] 7925, a law meant to liberalize and demonopolize the telco services in the country.

“A new antitrust law must be enacted by the government, even as the NTC must now enact antitrust policies in the form of memo circulars whose provisions can and maybe given retroactive effect, also to level the now mismatched playing field between PLDT and the Globe,” Salalima said.

The NTC should issue a circular defining a dominant position carrier, such that when any carrier or group controls a minimum of 50 percent of the market, that single entity shall be branded as a monopoly carrier and, thus, will be subject to sanctions by the government, he said. In so doing, this will protect market rivals and allow them to compete evenly with the dominant carrier in a fair and free competition, he continued.

“With so much clout, significant market power and influence now consolidated and vested in the PLDT group, free competition is threatened and ultimately the public good is gravely placed at risk,” Salalima said.

The PLDT-Digitel tandem will corner 67 percent of industry revenues, giving PLDT a 12-pecentage-point lead over the current 55 percent.

“The monopoly issue being raised by Globe is a reuse. It is meant to weaken the resolve of the NTC to approve a deal that will bring enormous benefits to the public…It is clear from Globe’s letter that they want concessions. Concessions to make up for their own inefficiencies. And this at the public’s expense,” Espinosa said.

For the NTC’s part, commissioner Gamaliel Cordoba said the agency will study Globe’s letter.

“We have been tasked by the President to review the deal. The NTC and economic managers and the Justice department is also into this. Whatever our comments are will be integrated with the review or findings of the committee,” he said.

The share-swap deal, valued at P69.2 billion, needs the nod of government agencies, including the NTC, before it is considered a done deal.

*******************

I'm inclined on the globe side - it will really make a monopoly of the frequency spectrum (resources) making it hard to compete on the market.

[Louie]

Globe Telecom Inc. yesterday said consolidated net income in the first quarter grew 1 percent to P2.991 billion, driven by strong revenue results from all its business segments despite intense competition in the market.

http://www.malaya.com.ph/may11/busi8.html

[stryfe]

http://www.businessmirror.com.ph/home/t ... etition-eo

we can't blame globe's frustration by seeking help everywhere, if the TEL-DGTL-JGS swap deal commence, then beneficiaries are sun-pldt subscriber then implement the MER-TEL research plans on the power line broadband transmitter they'll be caught in between signals, it will really be dominated by the giant TEL. . "demand of internet service "

[Ping]

Then, unless GLO re invents itself somehow, it will tank?!?

[stryfe]

its just my opinion sir ping and its only on the broadband service, cause i can see how desperate globe interfere with the share swap deal, im sure they have other plan if the deal commence , if you notice globe has been recreating itself already on the create your own plan, and being the only seller of iphone 4 for Philippine user's.

PD im bias that the deal will be approve, im a sun broadband user

[jcmiras]

Considered broken na ba itong P1000 psychological resistance?

[tohshi]

Considered broken na ba itong P1000 psychological resistance?

Bro Jcmiras, I do not want to be a wet blanket, but I hope the stock would consider "itself" (and also TEL for this matter) to go a little further down for the time-being. Why? Coz I am dying to buy more of this share!

[jcmiras]

Oks lang, I just sold mine at 999 and now buying back again. )

[tohshi]

Congrats Bro. Jcmiras.

Me, just bought few shares.
Still waiting more down below.

[surfer]

The duopoly is back. Happy days for glo

Pd. I have glo