Captain's Log: SMS Costs to be Reduced to 50 Centavos

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SMS Costs to be Reduced to 50 Centavos
Thursday, April 02, 2009

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Captain's Log Stardate -314250.77

Quezon congressman Danilo Suarez of the House Oversight Committee said yesterday that they had a meeting with officials of the National Telecommunications Commission (NTC) and the Bureau of Internal Revenue (BIR) to reduce the price of local SMS from Php1.00 to Php0.50.

Rep. Suarez said,

The resolution will be binding on NTC, which will fix the maximum cost of text messaging at 50 centavos per message based on our agreement. The current average cost is about P1.

Our estimate of the telcos’ text messaging cost is 18-19 centavos. If you include the five-centavo tax, the net cost should be about 25 centavos. So if they offer text messaging at 30 centavos per tax, they have a profit of five centavos

Since Filipinos send two billion text messages per day, making us the texting capital of the world, a five-centavo profit translates to P100 million a day, P3 billion a month and P36 billion a year

If telcos offer text messaging at 35 centavos, their net profit would soar to P72 billion a year on this service alone.

Suarez revealed that President Arroyo, Speaker Prospero Nograles and Senate President Juan Ponce Enrile are supporting his text cost proposals.

(Via Philstar)

*Computer end log*

Labels: mobile, news

Posted by Jepoy @ 4/02/2009 12:45:00 PM
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