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Saturday, August 30, 2008

 

Text messages soar in June–NTC

By Darwin G. Amojelar, Reporter

DESPITE soaring consumer prices, the average number of text messages sent per day rose by a fifth as of June, the National Telecommunications Commission said Friday.

Edgardo Cabarios, NTC director for common carrier and authorization, said the agency estimated about 600 million texts per day as of June this year, higher by 20 percent than the average of 500 million texts per day in 2006.

“The system is processing 600 million texts a day,” Cabarios told reporters and calculated that a subscriber sent 10 texts per day from only seven texts two to three years ago.

Cabarios said subscribers have begun shifting from voice call to text messages because of costlier food and fuel. “The cheapest form of communication in the country is still text,” he added.

Text revenues contributed about 55 percent to 60 percent of total wireless service revenues of telecom firms.

As of June, the number of mobile phone subscribers stood at more than 61 million. Of this, Smart Communications Inc. and Pilipino Telephone Corp. (Piltel) have combined subscribers of 33.2 million, Globe Telecom Inc. another 22.7 million, and Sun Cellular another six million.

Cabarrios earlier projected that the number of mobile phone in the second half is likely to grow between four and five million.

“For full year, it’s likely to hit 65 million,” he said.

Cabarrios said that while the number of subscribers is growing, the average revenue per user (ARPU) is declining owing to inflation.

In the first half of the year, Globe reported that its ARPU declined by 24 percent to P214 from P280 in the same period last year. Smart’s ARPU also dropped by 16 percent to P220.

Globe, which is owned by Ayala Corp. and Singapore Telecommunications Ltd., said its consolidated profit dropped by 3 percent to P6.2 billion owing to lower operating earnings and higher-income tax provisions.

Its second-quarter profit slipped 18 percent to P2.8 billion from P3.4 billion in the first quarter.

Partly owned by Hong Kong’s First Pacific Co. Ltd. and Japan’s NTT group, Philippine Long Distance Telephone Co., on the other hand, posted a second-quarter profit of P8.8 billion from P 8.47 billion in the same period last year.

This brought the telco’s first-half net income to P19.3 billion, or 13 percent higher than the P17.1 billion in the same six-month period last year.

Its core profit, which excludes foreign exchange gains or losses and other non-recurring income, reached P18.7 billion, an increase of 9 percent from the P17.2 billion recorded in the same period last year.

  
 

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