PLDT Global, Smart now account for 15% of HK’s cellular market

PLDT Global and Smart Communications now account for 15 percent of the cellular market among Filipinos in Hong Kong, servicing the needs of around 25,000 overseas Filipino workers in that country.

PLDT Global president Al Panlilio expects its market share to increase to 50 percent by year-end, thus providing for the mobile phone service needs of 90,000 OFWs in Hong Kong. There are approximately 180,000 OFWs in Hong Kong.

Panlilio said that PLDT 1528, the collaboration of PLDT Global and Smart in Hong Kong, now has 25,000 subscribers whose SIM cards are active which means that they regularly top up their prepaid cards.

PLDT Global and Smart have partnered with Hong Kong’s CSL, the second biggest mobile service provider in Hong Kong, last year to be able to offer the first Filipino prepaid SIM card in Hong Kong that uses the infrastructure of CSL on the ground.

The local companies (PLDT and Smart) thus become mobile virtual network operators (MVNO) in Hong Kong, operating in the latter and competing with Hong Kong’s six players without having to invest in infrastructure.

In exchange for the use of CSL’s infrastructure, the latter which caters mainly to the A and corporate market in Hong Kong, is able to penetrate the huge Filipino market through PLDT Global and Smart aside from a share in revenues.

By using PLDT 1258, OFWs in Hong Kong, get better international long distance rates to the Philippines than what they would get from using the services of other foreign operators.

Panlilio disclosed that they are currently in talks with cellular operators in other countries for a similar set-up such as the one in Hong Kong.

PLDT, whose stakeholder and Hong Kong-based First Pacific Co. used to have its own cellular operations in the territory, has decided to go after a niche market in Hong Kong instead of competing with the six existing players, PLDT chairman and First Pacific chief executive Manuel Pangilinan said.

As part of its thrust to have expand its telecommunications presence, Pangilinan said First Pacific continues to look for possible investment opportunities in cellular or integrated fixed/wireless companies in the region. "Right now, there are none," he revealed. First Pacific has a 24.4 percent stake in PLDT which has become its major revenue source, followed by Indofood in Indonesia.

If it does not make sense to reinvent the wheel as in the case of Hong Kong, Pangilinan noted that MVNO would be the way to go. In countries where MVNO is not allowed, he said PLDT will continue to sell prepaid cards and other services or focus on wholesale bilateral agreements with foreign operators such as AT&T.