Businessmirror march 20, 2016

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LTFRB plans to hear Uber fare adjustment proposals on April 6

Ericsson: 5G tech set to ‘invade’ PHL by ’20

T

HE chief of the local arm of Swedish multinational communication technology and services provider Ericsson is predicting that the fifth generation (5G) technology for mobile broadband will come to the Philippines by 2020. With fourth generation (4G) subscriptions in the Philippines seen rising to 40 percent of the population, Ericsson Philippines and Pacific Islands President and Country Manager Sean Gowran said he is bullish that the techsavvy nation will be ready for the fifth generation of mobile connectivity in four years.

By Lorenz S. Marasigan

W

ITH fares for ridehailing apps surging by as much as 500 percent during peak hours, the need to regulate these services becomes more and more pressing.

And with global oil prices dropping at constant rates, the chief of the Land Transportation Franchising and Regulatory Board (LTFRB) finds it fitting to review the possibility of adjusting the fares for transport network vehicle services (TNVS). TNVS in the Philippines are the driver partners of Uber, Grab, Wunder and Uhop. The hearing, Chairman Winston M. Ginez said, has been set for April 6 at the regulator’s headquarters in Quezon City. The Board, under an executive order, has the power to determine, prescribe and approve, and periodically review and adjust reasonable fares, rates and other related charges, relative to the operation of public land-transportation services See “LTFRB,” A2

40%

PHL subscribers who use 4G tech “What we can see is that there will be a sizable percentage of the mobile population with LTE subscriptions, with devices that will allow them to make full use of LTE or 5G. It will be exciting to see what services and applications are available in the country by 2020,” he said. The GSMA said there are two definitions of 5G. First is that the technology is a service-led view which sees 5G as a consolidation of 2G, 3G, 4G, Wi-Fi and other innovations providing far greater coverage and always-on reliability. The second view is driven by a step change in data speed and order of magnitude reduction in end-toend latency. However, these definitions are often discussed together, resulting in sometimes contradictory requirements. 5G technology can run up to 1 gigabit per second, making it the fastest mobile-Internet connection when it has been deployed. The technology “offers enormous potential for both consumers and industry, as well as the prospect of being considerably See “Ericsson,” A2

PALM SUNDAY Inson Pasco (foreground) from Laguna is in front of the Baguio City Cathedral to sell palm fronds to mark the start of Holy Week. Along with other vendors, he has made the palm fronds works of art to entice believers to buy. MAU VICTA

DOE to reduce energy use by 45% by 2035

By Lenie Lectura

T

HE Department of Energy (DOE) is finalizing an updated Philippine Energy Standards and Labeling Program (PESLP), expected to be a key contribution to attain the country’s aspirational target of reducing energy intensity by 45 percent by 2035. The PESLP initially covers room air-conditioners, split-type aircons, refrigerators with 5 cubic feet to 8

PESO exchange rates n US 46.4430

cu. ft. storage capacity, three types of fluorescent lamp (CFL, linear and circular) and electronic ballasts. An updated PESLP would cover a wider range of appliances and lighting systems. It would also include light-duty motor vehicles, DOE Officer in Charge-Assistant Secretary Patrick T. Aquino said. “We’re almost done updating the Philippine Energy Standards and Labeling Program,” Aquino said. He said comments and suggestions raised during the public consultations held in Luzon, the Visayas and Mindanao in Febru-

ary were given substantial weight in the finalization of the PESLP to make the policy more responsive to the needs of all stakeholders. The PESLP is in line with the agency’s Energy Efficiency and Conservation Program, a major aspect in cutting down the country’s carbon emissions. The agency, meanwhile, reiterated its warning to the public of the dangers of peddling liquid fuels in any container, or more known as bote-bote. Energy Secretary Zenaida Y.

IMF’s Lagarde: Negative rates have assisted global economy grow

T

HE world economy would be worse off without negative interest rates, International Monetary Fund (IMF) Managing Director Christine Lagarde said. Negative rates in Europe and Japan have helped support global growth and price gains, she said in an interview in Ho Chi Minh City on Friday. The finance sector may need to implement new business models as a result, she said. “If we had not had those negative rates, we would be in a much worse place today, with inflation probably lower than where it is, with growth probably lower than where we have it,” Lagarde said. “It was a good thing to actually implement those negative rates under the current circumstances.” Central banks in Europe and Japan have deployed negative interest rates to stimulate the economy, and Federal Reserve (the Fed) Chairman Janet Yellen said the US central bank is taking a look at the tool “in the event that we needed to add accommodation.” The policy moves have triggered concerns that they could have unintentional consequences, such as hurting bank profits. Negative interest rates are a fairly new economic tool and more time is needed to assess the policy, Lagarde said. “So let’s see whether it kickstarts the process of fueling credit to the economy, changing the behavioral pattern of people and changing the strategy of banks, as well,” she said. “It may be good for the economy—maybe not forever, but for a period of time.” Former Fed Chairman Ben S. Bernanke said in a blog post later on Friday that negative interest rates “ appear to have both modest benefits and manageable costs” and that market anxiety over below-zero borrowing costs, “seems to me to be overdone.” While the chances of the Fed going negative are low for the foreseeable future, the central

LAGARDE bank should probably analyze the option further, he wrote. Separately, Lagarde said the IMF may raise its 6.3-percent growth forecast for China due to the nation’s planned economic reforms and stimulus. The figure could be increased “a little more” after an assessment of a recently announced economic package, she said. “We believe China will continue to grow,” Lagarde said. “If those reforms are implemented and the stimulus announced also directed to the most efficient leverage in societies, which we believe is more consumption than necessarily investment that would be fueled by credit, then the recipe should be quite good for China to lead a continued quality growth.” Chinese Premier Li Keqiang opened the annual National People’s Congress by announcing this year’s economic-growth target would be 6.5 percent to 7 percent. He said in his work report to the ceremonial legislature that such a pace “will allow for relatively full employment.” Li also outlined plans to cut back inefficient industries and avoid mass layoffs while achieving growth targets that are challenged by rising debt and a global economic slowdown. The debt levels in the blueprint raised concern among some analysts about the sustainability of China’s economic growth. Bloomberg News

See “DOE,” A2

n japan 0.4168 n UK 67.2309 n HK 5.9892 n CHINA 7.1721 n singapore 34.3997 n australia 35.4592 n EU 52.5688 n SAUDI arabia 12.3855

Source: BSP (18 March 2016 )


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