Dumping ‘Unlitext’ Promos For Lower SMS Rate

After failing to have lower SMS rate (cost of regular text message) despite the assurance by the National Telecommunications Commission (NTC) that the cellphone companies promised to pass-on the benefit of reduced interconnection access charge to us, our legs are being pulled again by the telcos by saying that ten-centavo reduction is all they could give. They reason out that the NTC order to make the ‘unlitext’ promos applicable to all networks made it impossible for them to lower the SMS rate by twenty (PhP0.20) centavos, the actual amount of reduction in the interconnection access charge.

Unless you are among those who are benefiting from the telcos’ unlitext promos, I know that you are with us in hoping for the reduction on regular SMS rate. But should it be just ten (PhP0.10) centavos that the telcos announced? I say, definitely not. Following the telcos’ pronouncement that the unlitext promo is what’s causing their inability to lower the SMS rate some more, our question should be why don’t they dump it and give us the reasonable rate would not cause them to have profits lower than what they are making now.

Statistics show that Filipino cellphone users send 1.5 to 1.8 billion text messages per day. Our cellphone companies are claiming that due to unlitext promos, their average revenue per text message is only fourteen (PhP0.14) centavos, if I remember it right. They do not say how much they get from regular-priced text messages which they charge at one (PhP1.00) peso each. Neither do they reveal how much they make on text messages sent using unlitext promo.

Assuming only an average of 1.6 billion text messages per day and using the PhP0.14 per text revenue that our telcos claim, their current total daily gross take will be PhP224 million. Using the daily total revenue of PhP224 million and a reduced regular SMS rate of fifty (PhP0.50) centavos if the unlitext promos will be dumped, it will take only 448 million text messages per day for the telcos to reach the same total revenue.

So why don’t they do it? Aside from happy regular texters at PhP0.50 per maximum 160-character message, there will be less spammers and scammers (swindlers) if the unlitext promos will stop. The quality of service for the text message sending will be assured at almost 100% because the cellphone companies will handle only one-fourth (1/4) of the amount of messages they process when unlitext promos exist. If there is one drawback that will result from this proposal, it will be the country’s loss of the title of being the text capital of the world but I know most of us would not mind that.

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