Why GMA's 50-centavo SMS announcement is a dud?

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Monday, July 28. 2008

One of the shocking announcements made by Pres. Macapagal Arroyo in her 8th State of the Nation Address (SONA) was the slashing of text messages (SMS) rates down to half. That's down to 50 centavos and GMA proudly claims she was able to convince all the telcos to do so.

It seems like a miracle -- mobile telcos giving up billions of their revenues just in time for Arroyo to make the good news in her SONA. There must be something in return for this.

Well, I just learned that the announcement was kind of a dud. Why? Well, it's not a permanent price cut but a promo. Yes, just a promo. The president forgot to mention this was just a promo and the 50-cent cut will go back to the normal 1 Peso by October. The promo starts July 28, 2008.

I'm not a bit impressed. We all know that telcos are already doing monthly or quarterly promos -- some doing 100 SMS for just Php10 or Php20 a load.

We'll just have to see come October; once telcos realize how much money they're losing from the promo. Besides, they're public companies anyway, so we'd be able to see numbers once they've publish their financial reports.

Read more about my take on the SMS debate from my previous entry: "There was a time when SMS was free."

Posted by Abe Olandres at 23:56 | Comments (26) | Trackbacks (0)

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#1 Danilo Villamangca on 2008-08-01 01:25 (Reply)

You call it a dud, I call it pasakay. This comes from a president who has nothing to offer to an impoverished country but dole outs and freebies... Have the guts to even call herself an economist... Managed to even boast this SMS thing and yet did not mention a word about the MV Princess/toxic contamination and what government has done and plans to do... Oh well, we're not lifting a finger to boot her out, I guess we deserve her ans her SMS promo.

#1.1 JC on 2008-08-01 11:40 (Reply)

Yeah maybe it was pasakay, im not Pro-GMA, but who other person can you offer to save this what you called impoverished country. Huh???

#1.1.1 nooknook on 2008-08-01 12:22 (Reply)

well with that kind of thinking, i guess we really deserve her.

#1.2 ani on 2008-08-01 18:23 (Reply)

how can a person, who had the highest postion on our land, can think of those small matters...she should be thinking of wat will be our cuontry will do for next 20 years...i mean long term solutions,..

#1.2.1 nooknook on 2008-08-02 11:31 (Reply)

precisely. that's how low she would go just to appear "guapa" to the masses.

#1.2.2 Efren on 2008-08-07 12:38 (Reply)

Yes, you are right. Imagine ang pinagyabang ay tungkol sa texting na bukod sa palpak na wala pang maitutulong sa sikmura ni Juan. Nagpatahe pa kuno ng gown and all of her listeners ay puro bongga sa gown yon pala tungkol sa texting lang ang ipagyayabang. Nakakahiya. Binobola lang niya ang karamihan sa mga pinoy dahil alam niya na yan lang ang libangan ng mga Pinoy. Hindi niya inisip ng kaya ganoon ay dahil sa ang pera na mga Pinoy sa bulsa ay hindi uubrang ibili ng pagkain dahil sa taas ng mga halaga at ang baryang iyon ay puwede lang sa piso-pisong text na siyang nagpapalipas gutom sa mga pinoy. Nakakahiya talaga

#2 Benjie Mendoza on 2008-08-01 12:37 (Reply)

I think that Telecom Companies must be forthright in their advertisement. And government should not contibute in misleadeading the public about the cost of SMS, particularly the so called 50 cent per SMS promos of Telecom Companies.

For example, A consumer who register in Smart or Globe promo will pay P20 for a maximum of 40SMS which they must send within 24 hours to OTHER network. But if they were not able to consume all of this (and most consumers don't), then the cost of SMS will even be more than 50cents per SMS. If one happens to need to send only one SMS for the day after registering, then he/she effectively paid P20 for a single SMS.

No. of Cost per SMS
SMS Sent (in Peso)
1 20.00
2 10.00
10 2.00
20 1.00
40 0.50

#3 joel on 2008-08-01 14:38 (Reply)

the question is how much talent fee that gma received from this telcos. gma was not a good endorser coz she's misled the public when she promote this revenue generating promotion of this telcos.

(goverment official, specilly the president should not allow to endorsed or promote any product/service.)

#4 Anonymous on 2008-08-02 15:04 (Reply)

I tought yugatech is a high tech blog he he ....

#5 Anne on 2008-08-02 21:50 (Reply)

Kung tutuusin, hindi naman talaga poor na poor ang bansa natin. Sobrang gahaman lang talaga karamihan sa mga naka-upo sa gobyerno! Sobra sobra ang corruption! Mula sa barangay projects hanggang sa executive office! Magnanakaw halos 95%!

#6 eric dela cruz on 2008-08-03 11:09 (Reply)

kayo naman di na kayo nasanay ano ba bago sa sinabi ni gma kung naniwala kayo agad aba malaki ang sira ng ulo niyo,wala kayong kadala dala di pa ba kayo matututo na lahat ng sinabi niya tiyak yon ang kabaliktaran.

#7 Koki on 2008-08-03 14:16 (Reply)

Dear Abe,

Great blog about the 50% discount the president announced in her recent SONA. Well, yep. I all agree to you. But Abe, don't take her announcement as a "Big Thing" to tell us that you are not impressed. Like I said...It's a small thing to take note of it. From what I see, you are againts the Arroyo Goverment. Because, whatever she does (for righteous or whatever), may silip parin ang mga tao, specially you. Bumaba dollar, tumaas or bumaba bilihin, Tumaas or bumaba pamasahe etc... Sisihin si Gloria. And what makes me freak is you....by giving this impression about her annoucement about the 50 centavos SMS discount? Tsk tsk....

Hope next time, our bloggers can think of writing much better topic like this.

#7.1 Anonymous on 2008-08-05 14:47 (Reply)

He he he ... wala na kasing maisip na hightech na topic ang yugagotech he he he ...

#8 Anonymous on 2008-08-04 11:03 (Reply)

hahahaha I agree.
I can't believe she even mentioned that.
That is quite an embarrassment, imagine the foreigners that saw that, what would they be thinking?
But its all in her shortlist of good news I guess.

#9 mark kenneth on 2008-08-05 10:59 (Reply)

its a paguwapo!para may palakpakan naman ng mga taong nasuhulan

#10 yuga on 2008-08-05 15:53 (Reply)

@koki - if you've noticed, I never criticized any of her other accomplishments because I believe she's trying her best. It's not her but her statement. Those who wrote that script for her should learn a lesson or two on making a spin. I'm merely correcting the statement, not attacking her.

#11 Bob Reyes on 2008-08-06 17:30 (Reply)

What she stated during the SONA was a lie! Why NOT lower the real cost of sending SMS and not put up promos.

#11.1 Hay nako on 2008-08-07 17:54 (Reply)

@Bob Reyes

Bob, FYI, she doesn't own those telecon companies. And neither a goverment owned. She's not in control of those prices involving SMS. Dude isipin mo nga, Presidente ka ng Bansa and aasikasuhin mo pagpapababa ng SMS messeging? Hahahahahahaha. So if I were you, kung natataasan ka sa singil sa SMS and apektado ang budget mo....Don't send Morning, afternoon, evening and non-sence greetings to your friends. But if Ma pera ka. Don't complain...you can afford it.

#12 manny on 2008-08-08 12:56 (Reply)

ang pagbaba ng singil sa text messages ay walang epekto sa nakararaming nating mga kababayan na nakakaranas pa rin ng hirap. mapapababa pa na natin ang mga presyo ng bilihin pagkatos ng sunof suod ng pagtaas nito? nararamdaman natin ang sunod sunod na pagtaas...pero ang pagbaba...wala ata.

#13 CelPhone User on 2008-08-08 16:04 (Reply)

You're right! I also think the 50 centavos mobile text messaging is just for the sake of her SONA. It's obvious!

#14 Chris on 2008-08-09 00:01 (Reply)

How many billions are we talking about anyway? If the amount is really that hefty, why not use it to subsidize a commodity like rice or fuel instead of giving back the 50c as a discount?

I dont know how that can work out (I'm not an economist like Gloria but she herself disproved that being one makes for a good economic planner) but my layman's mind finds it feasible.

Sans graft and corruptoon of course, but there as they say is the rub.

#15 joey tan on 2008-08-12 09:03 (Reply)

hello... di tyo nasanay sa gobyerno style bulok.... kumita na yan hay naku talaga...mag focus tyo sa corruption wag sa mga bawas singil sa txt...

#16 dj on 2008-08-12 16:24 (Reply)

50 centavo text? e hindi naman totoo yan e...MANDARAYA talga yang mga telcos.I check my bal knina den I txted my friend den I check it again if how much ang mababawas then it came out that PISO parin ang bawas..dba hangang october yung promo nila? MANDURUGAS

#16.1 jerk on 2008-08-16 07:36 (Reply)

How STUPID! The President of the PHILIPPInes is. ALL WHAT SHE'S SAYING IS SUGGESTIONS AND NON-SENSE

#17 Ran on 2008-08-18 12:13 (Reply)

Do you really have to have a blog on this? The issue is so little to talk about. The president had said to many lies..

#18 pissed off on 2008-08-18 18:11 (Reply)

All say this and that about the President... Do you think its easy to be in her place? Being a President is one hell of a task and add to it a ?!!!%$#@#@ husband and son and thats a lot of fixin to do to preserve her image. Hope you got my point guys

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