|
A UNIT of Smart Communications Inc. plans to spend hundreds of
millions of pesos over five years to finance the rollout of its
advertising-funded mobile platform service.
Connectivity Unlimited Resource Enterprise
(CURE) told the National Telecommunications Commission (NTC) that it
plans to spend P346.85 million over five years for its mobile phone
service network expansion.
Of the total, CURE’s capital expenditure is
estimated at P86.45 million for the first year, P66.49 million for
year two, P65.06 million for year three, P64.46 million for year
four, and P64.39 million for year five.
The company said the capex will be used to
purchase advertising support platform, color SMS platform, mobile
ticker, network systems, billing system and various equipment.
In May, CURE unveiled the first
advertising-funded mobile platform in Asia called Umobile.
The company said it will focus on mobile
advertising to compete in the hotly contested telecom market.
Industry estimates placed mobile advertising as an $871-million
business worldwide in 2006.
At present, most mobile advertising takes the
form of text messages. But telecom companies have begun to offer ads
to mobile phone handset owners through video clips, music and game
downloads, among others.
Based on the company’s projection, CURE
expects to earn P43.21 million in revenues for year one, P214.88
million for year two, P247.18 million for year three, P279.81
million for year four, and P314.16 million for year five.
The company also expects P649.86 million in
top-up revenues in five years, and P58.89 million in inbound
revenues.
CURE said the ad-funded mobile phone service
would mean that subscribers can avail of the company’s services
for free.
Subscribers will earn loads by watching
commercials or clicking advertisements. The company will focus on a
niche market composed of men and women aged 15 to 35 years, who
collectively comprise about 45 percent of the country’s
population.
CURE also plans to increase in its service rates
owing to soaring inflation and foreign exchange rates.
The company said it would like to charge P20 per
minute for its international direct dial (IDD) from the earlier P10
per minute approved by the regulator.
The old rates were approved by the NTC in
October 2005.
“Although peso-dollar exchange rates have gone
down over the years, CURE’s forecasted decrease in IDD costs due
[to] international VoIP [Voice over Internet Protocol] technology
did not materialize, hence CURE’s IDD termination costs, to be
paid to IGF [International Gateway Facility] providers, remains
high,” the telco’s petition read.
The telco said it has to adjust its rates due to
its national roaming arrangement with Smart.
Under the old rates, CURE said it would turn in
a loss, as it pays P2.80 per minute to Smart for national roaming,
and P9.50 per minute for IGF.
The company explained that the new rates would
yield positive revenues to support its operations.
-- Darwin G. Amojelar
|
