San Miguel has declared that it will place a bid for the third-generation (3G) frequency that the NTC will auction off; this to enable it to compete with the big two telcos Globe and Smart/Sun!

SMC president Ramon Ang said the company will vie for the 3G frequencies that are up for bidding (one of which will come from PLDT) and once the FMCG giant secures a 3G license, it will consolidate all its telecom firms and start offering voice and SMS services within a year (currently in SMC’s telco stable are Eastern Telecommunications Philippines Corp., Bell Telecommunication Inc., Express Telecommunication Inc., and Liberty Telecom Holding Inc.

Ramon S. Ang, SMC president:

“Matutuwa kayo very soon. We will offer SMS and voice services within a year. We are waiting for the government to bid the 3G frequency. May pangako ang government na malapit na ang auction. We will bid to win, if possible!”

What’s the Frequency Kenneth
or
The 3G Frequency Backstory!

PLDT wanted to buy Digitel/Sun – the NTC said ok, so long as it divests itself from one of its subsidiaries, Cure, along with its 3G frequency. And so we have a 3G spectrum auction!

Ramon/SMC:

“Kapag nakuha natin ang 3G frequency, pwede na tayong sumabay sa SMS and voice services!”

San Miguel, in a statement, said that the bulk of revenue in the telco industry still comes from SMS and voice and that the primary strategy of the conglomerate was to offer cheaper rates so as to gain market share.

BellTel is Coming… Hopefully!

If San Miguel losses the bid, then it will be placed at a great disadvantage versus Globe and Smart/Sun. If it wins, then Bell Telecommunication Inc. will have a chance to take on the role that Sun Cellular has abandoned: the disruptive player on the block!

Troll: San Miguel is facing an uphill fight against the monopoly that is PLDT… and Globe; both telcos can pour massive amounts of money in the bidding process ensuring that they win the 3G spectrum, which will increase their signal strength and lead to happy customers from their respective ends. If San Miguel on the other hand over bids (i.e. pays too much for the spectrum) to ensure that it wins – well, this will lead to lessened funds that it can use to prop up BellTel – mind you, establishing a telco requires a lot of money to burn! In any case, the Troll prays hard to the old gods, and the new, for the success of SMC’s foray into full-fledged telco services. Since Sun got neutered by PLDT last year, the Troll has noticed a very marked decline in UNLI offers; it seems the Telco War has died down already and a new combatant, BellTel, may spark a new battle front – much to the benefit of consumers!