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Airbnb says it’s back in business in Japan

AIRBNB, Inc. says it’s back in business in Japan, a year after stricter home-sharing regulations forced it to freeze a major portion of its listings in the country.

There are 50,000 listings available in the country, with another 23,000 rooms in hotels and traditional inns known as ryokan, Airbnb said in a statement on Thursday. That compares with 60,000 total in June 2018, when the new home-sharing rules went into effect.

While Airbnb is no stranger to clashes with regulators, it had tried a more cooperative approach in Japan. But the government set a deadline for hosts to register and then in June 2018 forced those that were unregistered to cancel reservations two weeks ahead of that date. Listings plunged by almost 80% to just 13,800, the Nikkei newspaper reported at the time. Airbnb, privately valued at $31 billion, is preparing to go public as early as the end of this year or by 2020 at latest, and argues Japan is an example of how its business model can withstand even the most restrictive regimes.

“This shows that we can grow even in those environments,” Nathan Blecharczyk, Airbnb co-founder and chief strategy officer, said in an interview in Tokyo. “It’s important to have those rules in place long term, even if they are more restrictive.”

Legalization has opened doors for some of Japan’s largest corporations to enter the home-sharing market. Local collaborators already include SoftBank Group Corp., convenience store operator FamilyMart UNY Holdings Co., electronics retailer Bic Camera, Inc. and airline company ANA Holdings, Inc.

The company on Thursday said partnerships in the market grew to more than 117 companies, including property developer Panasonic Homes Co. and real estate brokerage HouseDo Co. While the exact details of the agreements are yet to be decided, the companies may help supply a pipeline of properties for lease or purchase that are home-sharing friendly, said Yasuyuki Tanabe, Airbnb’s country manager for Japan.

“The tide has changed,” said Mr. Tanabe. “And there are particular challenges in Japan. Everybody is saying we are going to live to 100, but we won’t have enough money to live to 100. There is going to be more interest for people to start hosting for extra cash.”

Airbnb is scrambling to shore up and expand its Japanese business as the summer Olympics approach next year. Prime Minister Shinzo Abe’s government is seeking to attract 40 million arrivals in 2020, the year Tokyo hosts the games.

Such events traditionally bring more hosts into the market in anticipation of a demand spike, Mr. Blecharczyk said, citing 85,000 guests served by the platform during the 2016 Olympics in Rio de Janeiro.

Japan’s home-sharing rules limited private stays to 180 nights a year, but local authorities have raised the hurdles for hosts by piling on more restrictions. The Shinjuku ward of central Tokyo, for example, prohibited lodging in residential areas on weekdays, while Kyoto limited stays in such locations to about 60 days between January and March for hosts without a special license.

In the wake of the new rules, Airbnb poured $30 million into strategic initiatives in Japan, including a marketing campaign that included TV, print and social media ads to improve the image of home-sharing in the country. It also hasn’t given up on municipalities like Shinjuku. On Thursday, the company said it has an agreement with the ward to make sure hosts operating there abide by the rules and that guests and hosts are up to date on the local disaster preparedness measures.

Outside of Japan, Airbnb is still locked in a fight over regulation in New York, its biggest domestic market where a law from 2010 made it illegal to rent an entire apartment in a multi-unit building for less than 30 days without a tenant present. Making peace in New York is not a prerequisite for going public for the San Francisco-based company, Mr. Blecharczyk said, declining to give further details on the timing.

“Every jurisdiction eventually passes policies that legitimize home-sharing, of course, with all kinds of caveats and rules,” he said. “There are no more existential questions about Airbnb.” — Bloomberg

What to see this week

5 films to see on the week of June 7 — June 13, 2019

X-Men: Dark Phoenix

WHEN Jean Grey develops powers that corrupt and turn her into the Dark Phoenix, her fellow X-Men have to decide whether to sacrifice the lives of many to save a team member. Directed by Simon Kinberg, the movie stars James McAvoy, Sophie Turner, Jennifer Lawrence, Michael Fassbender, Nicholas Hoult, Alexandra Shipp, Jessica Chastain, Olivia Munn, Kodi Smit-McPhee, Evan Peters, and Tye Sheridan. Peter Travers of Rolling Stone writes: “Sophie Turner shows enormous potential as super-mutant Jean Grey, but this botch job doesn’t just suck big time, it’s the worst movie ever in the X-Men series.” The film received a low score of 22% on review aggregate site Rotten Tomatoes.

MTRCB Rating: PG

The Secret Life of Pets 2

FOLLOWING the 2016 blockbuster, the sequel continues following Max the terrier who copes with major life changes when his owner gets married and has a baby. When the family takes a trip to the countryside, Max runs into various crazy and hostile animals. Directed by Chris Renaud, the film features the voices of Patton Oswalt, Eric Stonestreet, Harrison Ford, Tiffany Haddish, Jenny Slate, and Kevin Hart. Variety’s Courtney Howard writes, “Illumination’s The Secret Life Of Pets films do something the Despicable Me studio’s other offerings have yet to accomplish: They allow younger audiences to explore their feelings about new life experiences in a silly, lighthearted way through the travails of adorable animated animals.” The film got a score of 64% on review aggregate site Rotten Tomatoes.

MTRCB Rating: PG

Soul to Keep

THE demon Beelzebub is hellbent to possess souls and runs after two siblings and their friends at a secluded farmhouse. Directed by Davi Allensworth, the film stars Aurora Heimbach, Derek Long, and Sandra Mae Frank. Pophorror.com’s Preston Holt writes: “Overall, Soul To Keep is one hell of an intelligent horror film that I truly believe will stand the test of time.”

MTRCB Rating: R-16

Heretiks

SET IN THE 17th century, the film follows Persephone, a young girl who was saved from execution thanks to the intervention of the mysterious Reverend Mother who offers her sanctuary at a small priory. Upon arrival, Pesephone realizes that instead of attaining salvation, she has to battle for her soul. Directed by Paul Hyett, the film stars Michael Ironside, Rosie Day, and Hannah Arterton. “Identity-obscuring costumes and poor lighting conditions leave the viewer at a disconnect with characters in what is otherwise a compelling piece of period genre film,” writes Kat Hughes of The Hollywood News.

MTRCB Rating: R-16

Sunshine Family

BASED on the 1992 Japanese film Hit-And-Run Family, the film follows a Filipino family who has been living in South Korea for five years. When the father gets involved in a hit-and-run accident, the family keep the car and break it down to pieces before they return to their home country. Directed by Kim Tai-Sik, the film stars Sue Ramirez, Nonie Buencamino, and Shamaine Centenera-Buencamino.

MTRCB Rating: PG

Feuding over fortune

MACAO — This special administrative region (SAR) on the Pearl River Delta is now accessible via the Hong Kong-Zhuhai-Macao Bridge (HZMB), which opened to vehicular traffic in October 2018.

A 55-kilometer bridge and tunnel system, HZMB is the world’s longest sea crossing. It connects the three main cities of the so-called Greater Bay Area through a series of three cable-stayed bridges, four artificial islands, and an undersea tunnel.

Travel time from the western border of Hong Kong SAR to the mainland China city of Zhuhai has been reduced to 70 minutes while it takes less than an hour to reach Macao SAR, which could only be accessed by ferries and airplanes before HZMB’s advent.

Formerly a colony of the Portuguese Empire, Macao reverted to China in 1999 and liberalized its casino industry that used to operate under a state-licensed monopoly granted in the 1960s to multibillionaire Stanley Ho. Since Macao’s opening to global gambling operators like Sands and Wynn, it has surpassed Las Vegas as the gaming capital of the world.

Turning 98 years old this year, Mr. Ho has 17 children from his four wives. Over the past decade, an epic battle for control of his massive fortune has been raging among some of Mr. Ho’s wives and children.

The family feud flared anew last February when his daughter Pansy figured in a public dispute to take control of flagship firm SJM Holdings in direct conflict with her father’s fourth wife Angela Leong, who serves as SJM’s managing director.

This brings to mind a similar controversy in the Philippines involving the family of Metrobank Group founder George S.K. Ty, who passed away in November 2018. At the center of the feud is Margaret Ty-Cham, described as a “natural” daughter in Mr. Ty’s last will and testament.

A year before his death, the taipan’s lawyers issued a public notice stating that Ms. Ty-Cham “has for some time ceased to have any business relationship” with the Ty family’s group of companies and “has since then suffered a completely estranged relationship” with her father.

Compounding the situation are allegations that the estranged daughter duped several corporate entities and businessmen who have filed criminal and civil cases against her in courts and prosecutors’ offices across Metro Manila.

One of the estafa cases was filed by two businessmen who alleged that she scammed them into buying a Metrobank property in Pasig City for which they issued checks in her name, believing that she can deliver on the deal. They waited more than a year until she finally told them that someone else had already bought the lot. As a result, the Makati Regional Trial Court (RTC) indicted her for estafa.

Another case involved the issuance of an unfunded check as payment for a loan obtained from a private lending company. Subsequently, the Metropolitan Trial Court of Manila indicted her for violating Batas Pambansa (BP) 22, otherwise known as the “Bouncing Checks Law.”

San Juan City’s Metropolitan Trial Court likewise handed down two indictments for alleged violations of BP 22. In one of these cases, bouncing checks were issued to a jewelry firm and according to the court records, Ms. Ty-Cham pleaded for more time to pay but failed to do so. She is also facing two civil cases at the Makati RTC for annulment of contract and failure to pay bills for three credit cards.

Ms.Ty-Cham has nobody to blame but herself for the quagmire she finds herself in. Her father must have lost his patience to the point of severing all ties with her. She should learn a lesson from one of Mr. Ho’s sons, Lawrence, who chose to carve out his own empire by partnering with Australia’s Crown Resorts in a joint venture that operates City of Dreams here in Macao and also in Manila.

Those born to wealth either value their privilege or take it for granted. Sad to say, there are some who remain unsatisfied with their status and resort to other means of amassing more money despite having the means to live luxuriously.

 

J. Albert Gamboa is CFO of the Asian Center for Legal Excellence and Chairman of the FINEX Golden Jubilee Book Project.

Aviva overhauls UK business, to cut 1,800 jobs

LONDON — British insurer Aviva will change the structure of its UK business and cut costs across the firm, with the loss of 1,800 jobs, it said on Thursday.

Aviva said it would make cost cuts of 300 million pounds ($380.22 million) over three years, in a statement ahead of its first investor day under new Chief Executive Maurice Tulloch.

The cost base in 2018 was four billion pounds, an Aviva spokeswoman said.

Following the departure of Andy Briggs, head of the life and general insurer’s UK business and a contender for the top job, Aviva said it would review its UK life and general insurance businesses.

Its UK digital business, housed in a former garage in the City’s tech district, will be incorporated into the general insurance business, Aviva said.

Angela Darlington has been appointed interim Chief Executive Officer of UK life and Colm Holmes CEO of general insurance across the group, including Britain.

“Today is the first step in our plan to make Aviva simpler, more competitive and more commercial,” Tulloch said in the statement. “Reducing Aviva’s costs is essential.”

Aviva employs 30,000 people and its international markets include Canada, France, Ireland and Asia.

Aviva said trading to date had been in line with 2018 and reiterated its commitment to a progressive dividend policy. — Reuters

DLSU to open campus in Davao Global Township

A DE LA SALLE University (DLSU) campus will soon be built within the Davao Global Township (DGT), a 22-hectare mixed-use estate being developed by YHEST Realty and Development Corp.

YHEST Realty and DLSU on May 27 signed a memorandum of agreement (MOA) for the establishment of the De La Salle University Villa-Abrille Center for Professional Development in DGT.

YHEST is the joint venture of Cebu Landmasters, Inc. and the Yuson, Huang, and Tan families belonging to the Villa-Abrille clan of Davao.

YHEST will provide DLSU with 4,000 square meters (sq.m.) of prime office space, rent-free in the premier Corporate Center office building in DGT. The company will also donate P10 million for the school’s operational and other expenses.

“Continuing education has become imperative for businesses today to thrive given the speed of developments in technology, business, engineering and other fields. Through the Villa-Abrille Center we hope to bring the latest knowledge and learnings to Dabawenyos,” YHEST President Frederick H. Yuson said in the statement.

Jose Franco B. Soberano, director of YHEST and chief operating officer of CLI, said the DLSU campus will boost DGT’s bid to become the city’s premiere business district.

“The availability of ongoing education has proven to be a critical element in many business districts not only in Manila but also in the other capitals of the world,” he added.

DLSU College of Computer Studies Dean Rafael Cabredo said that modules in data science and information security will be one of the offerings, as well as engineering and business programs.

DGT is located in Matina district, and will also house office spaces, retail mall, park, civic area, and residential towers. YHEST has begun the construction of Phase 1 of DGT, which will have residential towers, a retail mall, and a civic center. It is set for completion in 2022. — Vincent Mariel P. Galang

How to criticize workers without creating resentment

Many Filipino workers are overly emotional and unreasonably sensitive. Even with a lot of mistakes, they feel they don’t deserve the criticisms they’re getting from their bosses no matter how hard they try to be objective in the process. Knowing this, what’s the best advice you can tell our people supervisors and managers who are having difficulties in counselling their workers? — Yellow Submarine.

Two taxidermists stopping before a window of a competitor’s shop and began to criticize the way an owl had been mounted on a tree branch. Its eyes were not natural, its wings were not in proportion to its head, its feathers were not neatly arranged and its feet lacked some claws.

Toward the end of their critique and just when they were about to leave, the old owl turned his head and winked at them!

It is often said that criticism in all contexts should be like rain drops. The rain should be gentle enough to nourish a man’s growth without destroying his roots. In the workplace, it is always a challenge for managers to do just that without being misinterpreted for their actions in counseling their workers.

Even the managers don’t enjoy criticizing their workers, and some would simply ignore the problem in the hope it is fixed over time. The trouble is that this doesn’t always happen. This means that ignoring the possibility of a heated confrontation with problem employees could create an even bigger issue.

There’s no choice but to settle the issue squarely with those concerned. And to do just that, you only have to minimize employee resentment by observing the following measures:

One, ensure that the work standards and targets are clear. Leave no room for ambiguity or misinterpretation. If necessary, create visual guides similar to those in dynamic factories where “wrong” and “correct” ways of doing things are visually illustrated. In addition, written job descriptions must be distributed to all concerned.

Two, discuss the issue with the concerned worker in private. This is one of the most important rules in people management. When counseling or a corrective discussion is needed, it is important and necessary to use a private room with no visual or noise distractions. Do not use the private room as a neutral venue for you and the concerned worker and also to put the worker at ease.

Three, offer help to all workers every step of the way. But not excessively so to constrict their movements or the freedom to think for themselves. Make it appear you’re not doing close supervision, no matter how sincere your intentions are. Do Management by Walking Around (or the Gemba Walk) every day to meet people. Being accessible is a positive sign you’re always around to anticipate all possible issues.

Four, use the sandwich approach all the time. It means starting and ending the conversation with all the good things about the person and what he can do in the future. The negative issues are carefully inserted in with the positive ones without diluting the purpose of counseling that may even confuse the worker. After all, if the worker is not doing right, then the right approach may be disciplinary and not counseling.

Five, solicit employee solutions to the performance issue. This is the essence of co-ownership. If the workers are part of creating solutions to a problem, they would be more than glad to concretize its implementation. People who are actively involved as partners in solving problems are the same persons who can only make it happen.

Six, be serious in tackling the issues with the concerned worker. Don’t use humor to lighten the atmosphere. It could backfire against your management and your joke may be misinterpreted as a sarcasm, if not an insult to the other party. On the other hand, control your temper as losing it may only lead to a tense atmosphere.

Seven, focus on the bigger issues at hand. Nothing more than that. Don’t bring in other peripheral or trivial issues that may not be related to the discussion. Also, avoid comparing the concerned worker with others as this could fuel resentment, if not multiply his anger and weaken teamwork within your department.

Eight, document the agreement in clear terms. An email to the concerned worker is more than sufficient to summarize all agreed points and timetable. For this reason, immediately after the end of each counseling session, it’s always advisable to summarize everything what has been agreed upon and what the expectations are.

Last, follow up without being a constant pain. Be patient with the concerned employee up to a certain extent and without losing your cool. If the work performance doesn’t improve immediately, allow some time and make allowances to let the worker adjust. After all, different employees go about correcting their subpar performances at different paces.

ELBONOMICS: Criticize only the things you can’t explain and understand.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

Your Weekend Guide (June 7, 2019)

Taal culture festival

HISTORIA Culinaria, y Cultura, a two day festival on June 8 and 9 in the heritage town of Taal, Batangas aims to educate visitors on interesting and little known facts about significant segments in Philippine history such as art and architecture. The festival includes talks by experts, guided tours around Taal, film screenings, a photography display of Taal’s historical places. For inquiries, call 0927-975-1683, 0916-633-6706, or 0961-252-3338.

CCP exhibit

THE Cultural Center of the Philippines (CCP), with the support of Outlooke Pointe Foundation, presents On Conflicts and Terrains by Mark Sanchez at the CCP’s 2F Hallway Gallery from June 8 to Aug. 18. For more information, contact the Visual Arts and Museum Division, Production and Exhibition Department at 832-1125 loc. 1504/1505 and 832-3702, 0917-603-3809, or visit www.culturalcenter.gov.ph.

MSO does Cayabyab

THE Manila Symphony Orchestra (MSO) opens its season with a tribute to the music of newly appointed National Artist for Music, Ryan Cayabyab. Mr. Cayabyab’s choral and orchestral output will be interpreted by the MSO under the baton of guest conductor Prof. Jonathan Velasco together with the Ateneo Chamber Singers. The Music of Ryan Cayabyab: An Orchestral Tribute will be held on June 9, 6 p.m., at the Hyundai Hall, Arete, Ateneo de Manila University, Quezon City. Tickets are available at TicketWorld (891-9999, www.ticketworld.com.ph).

Film screenings at Benilde

A SCENE from the film Woman is the Future of Man which will be screened at MCAD.

A SERIES of films focusing on the struggles of searching will be screened at the De La Salle-College of Saint Benilde’s Museum of Contemporary Art and Design (MCAD) on select Saturdays of June. To be screened on June 8 is the Korean movie Woman is the Future of Man, about two college buddies, a professor and a filmmaker, as they reminisce on the woman they both fell in love with at different periods in the past, and eventually embark on journey to find her. To be shown on June 15 is Nostalgia for the Light, a documentary filmed at Chile’s Atacama Desert which revolves around two different explorations: one by astronomers looking for answers about the history of the cosmos, and another by women looking for the remains of their disappeared relatives during General Augusto Pinochet’s 1970s regime. On June 29, Where Is the Friend’s Home will be shown, about a schoolboy’s quest to return the notebook of his classmate who lives in a neighboring village. The 3 p.m. screenings are free and open to the public and will be held at the MCAD Multimedia Room. For inquiries and reservations, call 230-5100 local 3897 or e-mail at mcad@benilde.edu.ph. MCAD is located at Dominga St., Malate, Manila.

Artists walk-through

THE ongoing exhibit City of Bawal closes on June 8 with an artists walk-through and a performance from Isola Rosa. This event is open and free to the public. The artists are Brisa Amir, Datu Arellano, Kristoffer Ardena, Jan Balquin, Lesley-Anne Cao, Miggy Inumerable, Czar Kristoff, Celine Lee, Cris Mora, Indy Paredes, Mark Salvatus, Jel Suarez, and Jose Tong. The exhibit is at the 1335 Mabini gallery, C18 Karrivin Plaza, Chino Roces Ave., Ext., Makati.

TransUnion posts surge in records

TRANSUNION PHILIPPINES saw robust growth in its account records here, as it targets to partner with more organizations in the near term.

The credit bureau and information solutions provider said in a statement on Thursday that it already has 20.7 million account records in its database as of April, up 570% from the baseline data of 3.1 million records in 2012.

Of the total, approximately 13.7 million are open trade lines such as open mortgages, credit cards, and loans from a total of 8.8 million unique customers.

“The market is maturing at an incredible rate and is providing more and more benefit to Filipinos,” TransUnion Philippines President and Chief Executive Officer Pia Arellano was quoted as saying in a statement.

Modern credit bureaus feature information about how people are maintaining loan payments, which in turn can provide them with access to more financial products at potentially more competitive rates.

The credit bureau expects to see an increase in reporting of 2-3 million more trade lines by the end of the year based on the current trends, it said. It has over 40 organizations such as banks and other financial institutions that contribute information.

TransUnion added that 20 more firms are onboarding soon, particularly from the rural banking sector.

“Our data expansion efforts are well underway. We’ve been in talks with various industries, educating them about our solutions and the benefits it can bring for them and the consumers they serve,” Ms. Arellano said.

The credit bureau added that they are also encouraging utility firms, cooperatives, and insurance companies to partner with them.

TransUnion is one of the special accessing entities that can retrieve data from state-led Credit Information Corp. (CIC), the country’s centralized public credit registry, apart from CIBI Information, Inc., Compuscan and CRIF S.p.A.

In a text message, CIC Senior Vice President Aileen L. Amor-Bautista said the credit registry currently has records of around sevem million people, coming from 5.3 million files with complete information last year. — Karl Angelo N. Vidal

World Bank GDP growth projections for select East Asia and Pacific economies

World Bank GDP growth projections for select East Asia and Pacific economies

How PSEi member stocks performed — June 6, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, June 6, 2019.

 

Under-control inflation to boost Q2 investment — FMIC/UA&P

INCREASED investment and consumer spending are expected in the second quarter with the taming of inflation and the acceleration of government spending, according to The Market Call published by the FMIC & UA&P Capital Markets Research.

“The expected ramp-up in infrastructure and other NG (national government) expenditures should facilitate a rebound in Q2. Softer upticks in prices of key commodities, likewise, will provide extra boost,” according to the report.

“We think that the downtrend in headline inflation and cuts in the BSP (Bangko Sentral ng Pilipinas) policy rates and RRR (reserve requirement ratio) will encourage higher investment and consumer spending starting Q2,” they said in the report.

The Philippine Statistics Authority (PSA) reported May inflation of 3.2%, up from 3% in April. BSP Governor Benjamin E. Diokno, however, said, that the central bank maintains its positive outlook on inflation for the year, which it expects to fall within the target band of 2-4%, with a projected rate of 2.9% for this year and 3.1% next year.

“The 3.2% inflation rate in May cannot be viewed as a reversal of the six months of progressive decline of inflation rates prior to the May number. One data point does not constitute a trend. That’s elementary. We are confident that the average inflation rate in the third quarter would be in the neighborhood of 2% because of base effects, declining world oil prices and the appreciating peso,” Mr. Diokno said in a mobile message to reporters.

Last month, the BSP decided to reduce its reverse repurchase (RRP) rate by 25 basis points (bps) to 4.5%. This was followed by a reduction in RRR by 100 bps on May 31, bringing down the rate to 17% from 18%.

Two 50-bps cuts are scheduled on June 28 and July 26, which will bring down the rate to 16%. RRR of thrift banks will also be reduced by 200 bps in three tranches with the same schedule with universal and commercial banks, while rural and cooperative banks’ reserve requirement were reduced by 100 bps to 4% from 5%, effective May 31.

According to the minutes of the Monetary Board meeting of May 9, released on Thursday, “Petitions for electricity rates and transport fare adjustments, the proposed increase in the excise taxes of alcohol beverages, and the potential impact of a prolonged El Niño episode are the main upside risks to inflation.”

“Meanwhile, slower global economic growth due to protectionist policies in advanced economies as well as geopolitical tensions and the potential renegotiation for lower tariff rates on meat products continue to be the main downside risks to inflation,” the BSP report added.

On the other hand, The Market Call report said that it is expecting inflation to dip below 3% as early as July and further slow to 2% in September, which is expected to boost consumer spending.

“Money growth should rally starting May after the BSP cut RRR and policy rates and adds to its GIR (gross international reserves) holdings to insulate the economy better from possible external shocks,” it said.

“Exports growth should move into positive territory by Q2 amidst the US economy’s upward march,” it added. — Reicelene Joy N. Ignacio

Mobile speed ratings set baseline for new 5G services — Opensignal

WIRELESS COVERAGE mapping firm Opensignal said Manila lags behind most cities in the Asia Pacific region in terms of download and upload speeds and the quality of the mobile video experience, thereby setting a benchmark which new 5G services need to improve on dramatically to justify the price premium.

Data collected by Opensignal from Feb. 1 to May 2 indicated that Manila has a download speed experience of 11.2 megabits per second (Mbps), and an upload speed of 3.3 Mbps, good enough for ninth in a ranking of 12 cities in the region.

In terms of mobile video experience, Manila ranked 11th of 12 cities, with a “Fair” rating based on an assessment of picture quality, video loading time and stall rate using mobile data.

Opensignal noted the current performance of mobile network providers shows how much they must improve for the impending arrival of fifth-generation (5G) networks and the development of appropriate price points by which they could make the service available to the market.

“With 5G arriving, the mobile speeds smartphone users experience across these lead cities represent the benchmark that initial 5G services must better to justify the 5G name. If the real-world experience of 5G is not significantly faster than current mobile services then operators will find it hard to charge more for 5G service, justify further network investment or explain the benefits of 5G to acquire new customers,” it said.

The report did not compare the broadband speeds in the Philippines by network provider, but its most recent Philippines-centric report in March showed Smart Communications, Inc. delivered average download speeds of 15.2 Mbps in Manila, and Globe Telecom, Inc. 7.6 Mbps in the same area.

The two telecommunications firms are preparing to battle it out in the 5G arena this year, as Smart continues to invest in the next-generation network after firing up its first two 5G cell sites late 2018. Globe is preparing to launch its 5G service this month.

Smart earlier said it was able to record speeds of up to 700 Mbps on its 5G network, while Globe said it could provide speeds from 50 Mbps to 100 Mbps.

In a statement Thursday, Smart said it continues to invest in network improvement with about $5 billion dedicated to transforming its fixed and mobile networks from 2016 to 2020.

“This year, PLDT (Inc.) has set aside P78.4 billion (to) further expand coverage and increase capacity to handle the rapid growth in data traffic. Over half of this capex program has been allotted to build up Smart’s mobile network, particularly its LTE and LTE-Advanced facilities,” it said.

Globe is investing P63 billion this year, the bulk of which will be spent to support the growing demand for data services.

“The good news is we have been improving country Internet speed performance year on year. However, there is much room for improvement. The sector does need the enabling laws and government support… to help enable the necessary infrastructure build for capacity and better performance,” Globe Senior Vice President for Corporate Communications Yoly C. Crisanto said in a text message.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

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