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Consumer watch: The “wireless landline” provider debate

March 12, 2008 by Jayvee Fernandez  
Filed under Mobile Monitor

CDMA based wireless landline differs from the GSM version

Back here we have three major telcos (Globe, SMART, SUN) on GSM and one that runs on a CDMA network. The latter, called Bayan Telecommunications dominates the “wireless landline” market by releasing CDMA based landlines without wires made by HUAWEI and some cellphones that also run on CDMA.

Lately (that’s in the past 4 months), the major landline service provider, PLDT (Philippine Long Distance Telephone Company) released their own version of the wireless landline. But no it doesn’t run on CDMA. It runs on GSM. This is the direct competitor to the Bayan Telecommunications wireless landline that, and this is confirmed, makes use of the GSM technology of SMART Telecommunications since PLDT and SMART belong to the same group.

What then differentiates the GSM wireless landline of PLDT from the GSM mobile phone service of SMART? PLDT has cheaper rates at P2.50 per minute while SMART prepaid subscribers have to pay P6.00 per minute. Wait. Wait. So what’s the diff? I would understand if both are running on different networks – but they aren’t. Is SMART screwing their already huge subscriber base by letting their other company charge lower? Surely the public knows this but calculating the rates makes you wonder why SMART has been overcharging calls by 300%. SMART’s network is also allegedly optimized for SMS, not voice.

It may not be a big issue for a lot of people – well like me I’m a SMART postpaid subscriber so I get lots of free calls and SMS. But I really wonder why PLDT set itself up make known the real rates that they can charge for calls.

Anyone care to comment?

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