Globe claims top spot in mobile postpaid

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GLOBE Telecom claims the top spot in the mobile postpaid business based on the new global standard of using revenue market share to establish market leadership.

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With its adoption of the new global standard, Globe is challenging the claim made by its rival PLDT Group that continues to use subscriber base as its basis.

Dan Horan, Globe senior advisor for Consumer Business, pointed out that there is a reliable measure of market leadership that is being used across the world for telecommunications.

“Revenue market share has been seldom used in emerging markets such as the Philippines, and it’s about time to change this with Globe setting the standard,” he added.

Globe dominated the mobile postpaid segment in revenue market share, with revenues of P29.9 billion and market share of 58 percent in a two-player market in 2014, with the combined revenues of its two competitors reaching P21.7 billion, translating to a combined 42 percent revenue market share.

Globe’s postpaid revenues ending 2014 grew 11 percent from previous year’s P27.1 billion. As a solid contributor to overall mobile business, postpaid revenues formed 38 percent of total mobile revenues in 2014, the telco said.

Horan added, “The global metric that uses revenues as a basis to define market leadership is one that is profitable and sustainable. Clearly, mobile postpaid is a segment that Globe has dominated through the years based on this global leadership metric. Since 2012, Globe led the mobile postpaid business and saw consistent revenue growth.”

“Our leadership in the postpaid business is clearly unprecedented, with sustained growth in this segment and our breakthrough offers and innovations attracting new customers,” he added.

Sustaining its market leadership in 2015, Globe recently launched a revolutionary postpaid plan offer, the new myLifestyle Plan, to boost the digital lifestyle experience of its customers who have fully embraced data and content usage on their mobile phones.

Broadband market leader
Earlier, Philippine Long Distance Telephone Co. (PLDT) said its broadband subscribers topped the 4 million mark at the end of last year, cementing its position as the country’s broadband market leader.

The more than 4 million subscribers represent a 19-percent increase from the previous year amid sustained expansion in its fixed and wireless broadband subscriber base, the country’s largest telco and multimedia provider said.

The PLDT Group, which includes PLDT ALPHA Enterprise, PLDT SME Nation, PLDT HOME, and mobile subsidiaries Smart Communications and Sun Cellular, cornered almost 60 percent of the total broadband subscribers in the country.

PLDT spent over P34.8 billion in capital expenditures in 2014 as it expanded its fiber network to nearly 100,000 kilometers, making it the most extensive, robust and resilient network in the country.

The company said that such network is needed for reliable broadband services that can simultaneously deliver voice, video, and data offerings at faster speeds and larger capacities through various devices from computers, tablets, and cellphones, to television sets.

In anticipation of greater data usage, PLDT is planning even bigger capital expenditure of P39 billion in 2015.

PLDT’s total fixed broadband subscribers jumped 13 percent to 1.1 million, representing over 70 percent of the total market and now accounting for almost 50 percent of the fixed-line subscriber base.

Smart broadband subscribers increased by 21 percent from its year-ago level to over 2.3 million in 2014, about 1.8 million of whom were on Smart Broadband’s prepaid service.

On the other hand, Sun Cellular’s broadband subscriber base grew by 24 percent to over 676,000.

On a combined basis, the PLDT Group’s wireless broadband subscriber base of nearly 3 million accounts for about 56 percent of the market.

PLDT also reported earlier that its wireless units Smart and Sun Cellular continued to dominate the mobile postpaid segment with a 16-percent increase in subscriber base to over 2.8 million, outpacing that of competition. This also represents 55 percent of the total Philippine mobile postpaid market.

Earlier, Smart chief wireless adviser Orlando Vea had said, “We have seen a significant jump in our wireless broadband subscribers following the ‘Free Internet’ offer in the last quarter of 2014. This is part of the suite of services under our ‘Internet for All’ advocacy which is expanding rapidly.”

He added that this campaign allows for a wide-ranging collaboration with the likes of Google for Android One handsets, consumer giant McDonald’s for free coupons, and global multimedia player Disney for unique interactive content.

“The subscribers are, of course, very important and the revenues will follow after that,” PLDT president and chief executive officer Napoleon Nazareno said.

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