Cheaper mobile phone services a bad thing? | Inquirer Opinion

Cheaper mobile phone services a bad thing?

/ 01:13 AM June 08, 2011

This is in reference to the news item titled “P-Noy orders probe of PLDT, Digitel merger.” (Inquirer, 5/29/11)

President Aquino seems to be blatantly pandering to the wishes of the Ayalas of Globe in their bid to cripple their competitors in the telecom business. The President seems unable to grasp that what Globe wants is to get 22 megahertz of frequencies that have been allocated to PLDT by virtue of its 60-percent share of the nationwide subscribers base (as against Globe’s measly 30 percent).

While Globe has inefficiently utilized its own allocated frequencies, it wants to take frequencies away from PLDT which are just enough for its millions of subscribers.

What Globe wants is to castrate the operations of PLDT through the use of the coercive powers of the State. Thus, instead of acting like he is beholden to the Ayalas, P-Noy should tell Globe to fight fair and square by providing better services to lure more customers.


Of course, as the President has said, the PLDT-Digitel deal will reduce the cost of their services to consumers, but not because of any unfair advantage from an alleged monopoly, but as a result of the “economy of scale,” a very basic concept.

Contrary to the tone of the President’s statement, the PLDT-Digitel merger is a very good thing because the lowered cost of their combined operations will be enjoyed by us, the consumers. And that is a bad thing?!

Likewise, I am quite lost that P-Noy has echoed Globe’s “monopoly spiel” which is utter nonsense, considering that mobile phone operators do not only compete with one another but with other communication technologies like voice over Internet protocol (VOIP), Internet-based chats like Skype and Yahoo Messenger, etc.


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TAGS: Digitel, Letters to the Editor, mobile phones, PLDT

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