During the mid-1990s, cellular phone handsets using the so-called GSM (Global System for Mobile Communications) technology were introduced to the Philippine market. Their entry was marked by that memorable TV commercial where two speech-impaired people were finally able to use cellular phones by texting their messages to each other. Up to that time, of course, the cellular phone could only be used for voice calls.

Not long after, the country’s major telephone companies were offering text services to their subscribers, enticing them to text their hearts away for only P150 or so a month. This development ushered in digital telephony with limited data communications, with bulky but “cool” cellular handsets as the in-thing for mobile communication. It also signalled the end of wireless analog voice-only telephony and the extinction of small pagers and beepers.

The so-called short message service or SMS became an integral part of the life of most Filipinos from then on, and it spawned many successful start-up companies offering various forms of content in addition to the staple text services being provided by the telephone companies.

2.5G: From the original series

Since the mobile telephone service operators adopted the so-called 2G technology that includes GSM, they have made it their overriding goal to merge Internet technology with mobile telephony. A major outcome of their efforts is the creation of several revenue-producing services such as broadband Internet access, which uses the so-called GPRS (General Packet Radio Service) technology.

GPRS is chiefly used to access two types of service systems: WAP (Wireless Application Protocol) services, and MMS (Multimedia Messaging Service). These systems that use GPRS are sometimes called 2.5G, an acronym that is meant to indicate the transition from 2G to 3G.

Another upgrade done on the old GSM network is EDGE, an acronym for Enhanced Data Rates for GSM Evolution. Commonly referred to as 2.75G, EDGE improves GPRS transmission times and data reliability. Through their WeRoam package, PLDT and SMART were the first to offer this kind of service in the Philippines.

Under the WeRoam package, users can install a GPRS/EDGE data card in their laptops, giving them unlimited access to the Internet through Wi-Fi hotspots or GPRS/EDGE access points. The prepaid plans charge P10,860 for three months of use. (Details about the service are available at the WeRoam website at http://www.pldtweroam.com/.)

New handsets

As more and more people become aware that they could indeed bring their home office wherever they go, a new breed of mobile handsets called 3G-enabled phones is emerging as the latest thing in mobile coolness. These phones have slightly bigger screens to support video playback, more gigabytes of storage to allow multimedia downloads, new and faster software, and longer battery life. Their screen displays also allow for more colors than those of their predecessors.

The more popular supported models are Treo750 from Palm, Z800i from Sony Ericsson, Samsung Z720, Nokia N95, and Motorola’s MotoV6. Recently, both Globe Telecom and SMART also began selling LG’s model KU250. Both service providers say that the KU250 is the most affordable of the lot, making it ideal for people who want to try 3G services with the lowest cash outlay possible.

On the other hand, Globe is offering its “Better than 3G” service, which it claims to be the “first commercially available HSDPA service in Asia Pacific and among the first 20 worldwide.” (Details about the service are available at Globe’s website at http://www.betterthan3g.com/.)

HSDPA, the acronym for High-Speed Downlink Packet Access, is supposed to be better than early 3G implementations. With this service, Internet browsing speed may go up to as high as 1.4 Mbps, compared to the current 384 kbps that most providers offer, including that for broadband DSL. Consumers will experience clearer connections when viewing streaming video and faster mobile Internet connections.

Video calls are charged as a regular voice calls but are available only for subscribers of the same network. For international calls, the charges are as low as 30 centavos per second, or roughly P20 a minute.

Not all of the Philippines is covered by HSDPA signals, however, so new owners of 3G handsets are advised to check with their operators if their areas are covered. Some parts of Metro Manila have weak or no 3G signals, according to some users.

Video killed the radio star

As demand for 3G grows among subscribers, the use of its non-voice (data) features becomes more important. Content providers for SMS are also preparing to port their applications for 3G networks. So far, we have seen advertisements for mobile postcards, streaming music from radio stations, and video-on-demand services.

Giant TV networks like GMA and ABS-CBN have also started to broadcast popular programs to 3G-enabled handsets. This means that you can watch your favorite soap opera while, say, waiting at the airport for a delayed flight. With video on demand, you won’t miss any episode of your favorite show.

The 3G revolution runs along the same lines as Google’s alleged goal of gathering the entire world’s information. Both want to establish an omnipresent service while directly influencing the lives of its users.

Currently, here are some of the business applications being shown to early users of 3G technology when they are browsing the Internet:

• Video advertising. Instead of the annoying text ads, they are getting even more annoying three-minute video commercials.

• Live traffic updates. Scenes are taken by cameras planted along busy thoroughfares like EDSA, Makati, and even in Baguio.

• Live radio. You need not wonder anymore about how that DJ with the sexy voice looks like.

• Video polling. Before voting for your favorite singing idol, you can replay the part where he or she perfectly hits the high notes.

• Video chatting. As mobile Internet charges fall, video chat-rooms and video conferencing may become common.

• Live customer support. You can see who you are talking to, and you can even demonstrate your problems on-screen to the support agent

The whole business model of delivering content to 3G users remains quite uncertain. The Internet’s free content is a major challenge to the content providers to come up with comparatively more affordable services. They see their role as that of filling up the gap between machine-to-human and human-to-machine. The human-to-human (voice calls) revenue stream remains the main moneymaker, though, with the mobile operators having a monopoly on it.

3G Issues

The ongoing 3G rollout started early last year after the NTC granted four companies in 2005 with the authority to use 3G frequency bands. Until now, however, the adoption is quite slow compared to the 2G-2.5G rate.

One prevailing problem is spotty network coverage. Only key hubs in Metro Manila and in the major cities in the provinces are blessed with good signals. The infrastructure completion is excruciatingly slow, and most experts predict that full adoption will occur only around 2010. By that time, however, the buzzword would likely be already 4G!

Another reason why there’s a lack of buy-in from 2G users is the comparatively high cost of 3G handsets. It’s a good thing, though, that mobile operators are starting to subsidize the cost of handset acquisition through their customer loyalty programs.

At any rate, when we look around us, it’s easy to conclude that Filipinos are more of texters than callers. So, when you see your child’s yaya (nanny) using a 3G phone to make a video call home, you can safely assume that 3G is the present rage.

Val J. Gonzales is one of the principals of Digital Solutions Inc., a company that provides IT solutions to small organizations and businesses. You can reach him at tech@digitalsolutions.ph or you can log on to http://www.digitalsolutions.ph for more online tips.