PLDT eyes 90% of SMEs as subscribers

MANILA, Philippines - Leading telecommunications provider Philippine Long Distance Telephone Co. (PLDT) is eyeing to capture over 90 percent of the country’s small and medium enterprises (SMEs) in the next two to three years.

“We are growing in the SME space,” PLDT senior vice-president and customer sales and marketing group head Ernesto Alberto told reporters at the sidelines of the MVP Bossing Awards that paid tribute to exemplary Filipino entrepreneurs.

Alberto said that from 35,000 SMEs last year, PLDT’s subscriber base in this segment has grown to over 50,000. “There are over 300,000 SMEs in the country and in the next two to three years, we would have covered 90 percent of the market,” he added.

He noted that SMEs offer a good revenue stream to the telecom firm as they avail of high-value services that go beyond landline and Internet services.

PLDT SME-Nation comprised 10 percent of PLDT’s net income last year. The segment recorded profits of around P4.3 billion in 2009, from P2.5 billion the previous year.

Also during the event, Alberto pointed out that the Philippine’s aspiration for a wider base middle class, which consequently should lead to sustainable economic prosperity, crucially hinges on a thriving SME market segment.

Unfortunately, small and medium entrepreneurs are heavily disadvantaged in competition with large local and multinational corporations.

“These corporate giants have the benefit of vast resources, economies of scale, and global market reach and the capability gap between large and small business is just getting wider. In this inequitable market environment, the adoption of information and communications technology (ICT) by SMEs has become an imperative,” he emphasized.

Alberto pointed out that ICT adoption by SMEs therefore is the only way to level the playing field. “And level we must as the stakes are significant: 70 percent of this country’s total labor force is employed by this segment, constituting up to 35 percent of our gross domestic product (GDP),” he added.

The first MVP Bossing Awards sought to recognize and pay tribute to exemplary Pinoy Entrepreneurs for their bold entrepreneurial spirit, persevering hard work, and game changing creativity.

In June of this year, PLDT SME Nation unveiled its first 16 Bossing Ako Icons. “The resounding feedback & enthusiasm from other entrepreneurs all over the country inspired us to institutionalize this movement through this first MVP Bossing Ako Awards,” Alberto explained.

“These Bossing Ako icons generously contributed their valuable time and effort in leading this entrepreneurship movement. These successful Bossings are role models to thousands of this country’s aspiring business owners by their courage, passion, commitment, vision, and positive impact to society at large,” he said.

The PLDT official explained that they have put small and medium entrepreneurs at the top of their list for several reasons, including the fact that they are immensely pivotal with massive spill-down economic multiplier benefits for this nation. “SMEs transform our country’s economy and social fabric, promising a more equitable distribution of wealth for a wider base of Filipinos. To this end, PLDT remains committed to your continued vibrancy and competitiveness by ensuring we never falter from our historic fiduciary role as the country’s leading telco,” he added.

Alberto also revealed that PLDT SME Nation has and will continue to develop world class innovative ICT products, services and solutions that will enable SMEs to be strong and competitive, generating cost savings, operational efficiencies and optimized profits for small business.