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.
I used to use unlimited texting back when I was in real estate. It would be cheaper for me since I had to text important follow ups almost everyday or during the days when I do. Now that I don’t, I think unlimited texting is getting more expensive as you get to be forced to use up all the free text all in one day (or whatever the duration is).
It’s like buy-one-take-one. You don’t need the other but you buy it because it turns out cheap. You’re right. If the unli texting is gone and exchanged for a cheaper single text, people will be more cautious in using their resources. Scams will be lessened, textmates will be avoided and senseless texting will be limited.
Hi Cecile,
Thanks for the visit and the comment. That is exactly what I am saying. Many of us has no use for unlitext promos. I believe most of those enticed to enroll on such promos ended up wasting money instead of saving them.
This is the reason why the telcos are insisting on offering them in the guise of giving subsidies to promo users. The truth is, we, the regular texters are the ones subsidizing those promos, if ever.
Come to think of it, telcos are reaping tremendous profits from unlitxt promos especially from those costing 25 centavos with 1 day expiry period. A great majority of those availing 25 centavos unlitext loads belong to the low income level and most of them can’t be expected to spend 24 hours texting as they are either studying, working or attending to other necessary daily activities. I never avail such unlitxt promos but only regular loads as I’m not fond of indulging in unnecessary texting.
That is why the telcos are insisting on their offer on the pretext of providing subsidies for promo users. The truth is that we, the regular texters are what subsidize the promos, if ever.