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May 2nd, 2008 05:02 PM #1
When President Ramos came into power he initiated the
dismantling of a telecommunication monopoly called PLDT. After almost two decades, a duopoly has emerged in the market.....
In an economy, duopoly is a double edge sword...either we benefit or not. But, in my opinion the consumers in the end will not benefit because of less competition and few choices....
For the meantime....
PLDT-Smart-Piltel (Talk and text) is swallowing smaller telecom firms (CURE etc.)
Globe-IslaCom (TM) is doing the same thing.
Far third is Digitel-SUn.. rumored to be losing money daw....
Kolelat is Bayantel..........although Bayantel does not have a cellular network..
Another busy partylines in the future.........
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May 2nd, 2008 06:11 PM #2
Let's face it. For businesses which are classified as public utilities, there's not much room for competition --- especially in the Philippine economic setting. In fact, the business of public utilities does not thrive in perfect competition. You get at most 2-3 operators and that's it.
Yes, laws have been enacted to dismantle the telco monopoly of PLDT. But, when you examine the provisions carefully, you can immediately suspect that a lot of these laws were drafted right out of PLDT's legal department considering that a lot of the provisions of this law still tolerates certain "monopolistic behavior".
Consider the other factors which contributed to the "demise" of the competition:
1. Very high US$-denominated capex for telco equipment;
2. Limitation on allowable "service areas"
3. Interconnection/access difficulties with established telcos
4. Low (even less than market) service rates offered to subscribers
There's very little business incentive for newer players to enter the market, so to speak.
If we truly want a free, competitive environment for telecommunications, we must limit PLDT's ability to exercise its monopolistic behavior. Interconnection must not only be mandatory but immediate and universal for all services (landline, CMTS, SMS, VAS).
The installation of a network facility (whether wireless or landline) should be market-determined and not dictated by law.
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May 3rd, 2008 12:04 AM #3
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May 3rd, 2008 06:37 AM #4
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May 3rd, 2008 11:17 AM #5
the telecom business involves huge capital.
So it is not surprising that there are only a handful of players in the biz.
Even in rich countries, only 2 or three companies dominate the telecom sector
Japan - NTT, KDDI
US - AT&T, VerizonLast edited by uls; May 3rd, 2008 at 11:22 AM.
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May 3rd, 2008 05:21 PM #6
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May 3rd, 2008 09:56 PM #7
Kala ko may Next Mobile and Express Mobile.....
hindi puede na magdominate lang dalawa....
I think SUn should survive and should seriously challenge the two behemoths....
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May 3rd, 2008 11:06 PM #8
Sun is a major player. Everyone i know has a sun SIM.
Ya it would be great to have another GSM network provider...
now the question is... my usual question... Sino ang mamumuhunan?
The other taipans?
a foreign telecom company?
Anyone wanna get their million dollar cell sites blown up?
hehe
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May 3rd, 2008 11:23 PM #9
--Eastern Telecom nawala na..
--RCPI extinct na....
--PT&T nalusaw na...
--CURE nabili na..
--BellTel lumubog na...
--Bayantel...takot pa mag-cellular...
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May 14th, 2008 08:57 AM #10
Well, what I'm saying is that changing the rules on interconnection and mandated roll-out of facilities would be helpful.
At present, PLDT/SMART and GLOBE/INNOVE exert tremendous pressure on other players due to their access charges.
Also, the NTC requires new players in the cellular service business to roll out 400,000 landlines within 3 years from the grant of their provisional authority or CPCN. When you consider that the capex investment for a single landline is about US$ 1,000 from your inside plant to customer premises, that's a pretty daunting amount to spend. Add to that the Php 10 Million you have to spend for putting up each cell site. Butas talaga bulsa mo.Last edited by Altis6453; May 14th, 2008 at 09:06 AM.
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