Philippine telcos report strong broadband growth in 1H

By Eden Estopace | Aug 14, 2011

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MANILA -- The two leading telecommunications companies in the Philippines reported strong growth in the broadband Internet business in the first half of the year.

Leading telecommunications carrier Philippine Long Distance and Telephone Company (PLDT) grew its wireless broadband subscriber base to approximately 1.5 million at the end of June 2011, with revenues rising 5 percent to P4 billion. Second largest carrier Globe Telecom, on the other hand, said its broadband subscribers also rose to 1.3 million for the same period, or 10 percent higher than the last quarter, driving a 42 percent year-on-year improvement in broadband revenues to P3.6 billion. 

Orlando B. Vea, Smart Chief Wireless Adviser, said broadband remains the PLDT Group's top priority as it believes there is much room to expand in this segment of the business.

Mobile data is also rising compared to traditional voice and services. For Globe Telecom, mobile data revenues accounted for 53 percent of total mobile service revenues and grew 8 percent in the first half of the year, compared to mobile voice revenues, which comprised only 47 percent of total mobile services revenue and registered a growth of 1 percent for the same period.

Globe attributes the growth of mobile data services to higher mobile browsing revenues driven by the popularity of social networking sites, affordable data plans and wider availability of smartphones and other access devices. Growth was driven by its nomadic broadband service and its fixed wireless service under the Tattoo brand.

"Filipinos not just love to text and call, they love to communicate using many channels. So it is imperative upon Globe to widen its range of services and its range of devices and working with our partners, to make these services and devices affordable to the public," said Ernest Cu, President and CEO of Globe Telecom.
 
Both companies have made substantial investments in infrastructure to accommodate rising demand for Internet services.

Smart continues to invest in its cellular and multi-platform broadband networks while upgrading its existing transmission, core and access facilities. Smart's 3G and HSPA networks now cover 50 percent and 47 percent of the country's population, respectively.

"We expect revenues to remain under pressure for the near term; nonetheless, we are confident that with our cost discipline and focus on innovation, we will continue to produce value for our customers and shareholders," said Napoleon L. Nazareno, President and CEO of PLDT and Smart.

Globe, for its part, has complemented its 4G WiMax network with the rollout of its 4G mobile technology through the global standard HSPA+. It recently introduced an initial line-up of 4G devices and applications, including the fastest broadband stick in the local market with Internet speeds of about 10 Mbps and it was the first operator to bring to the country the first 4G-enabled mobile phone.
 
Cellular subscriber base, however, continues to grow -- 47.8 million for PLDT and 28.4 million for Globe Telecom. For the first half of the year, the two carriers added approximately 4 million new subscribers.