Migration to PLDT benefits Digital landline subscribers

MANILA, Philippines - The migration of the landline subscribers of Digital Telecommunications Philippines (Digitel) to its parent company PLDT is being undertaken in order to ensure that Digitel subscribers will continue to be served and with better quality and wider range of services.

Digitel spokesman Reuben Pangan explained that Digitel had to migrate its subscriber to its parent firm PLDT because Digitel’s landline facilities are substantially at the end-of-life stage and would be progressively difficult to operate because there are no longer spare parts for these equipment, making Digitel subscribers increasingly vulnerable to possible service disruptions due to equipment failure.

“A large part of Digitel’s landline facilities consists of the old telephone network acquired from the government.  These were installed over 30 years ago. They need to be replaced,” Pangan said.

“From the standpoint of public service, it is better to simply retire the old Digitel network and migrate our customers to PLDT which has just completed its network transformation. This way, our customers would continue to be served at the same rates, with the same subscriber number, and with better quality and wider range of services,” he added.

He noted that Digitel sought and obtained the approval of the National Telecommunications Commission (NTC) at every phase of the migration process.

Pangan pointed out that because of its decision to migrate its landline subscribers in its franchise areas in northern, central, and southern Luzon to PLDT, Digitel had to implement a redundancy program for its employees.

“This is clearly a case where redundancy is unavoidable. The regular jobs in Digitel are simply no longer there because the Digitel network is being decommissioned,” he stressed.

The redundancy program submitted to the Department of Labor and Employment (DOLE) has been completed last March 15. Over 80 percent of the remaining Digitel employees agreed to accept the redundancy package which was about twice the amount required by law plus two-year medical coverage.

Pangan noted that every effort has been taken to cushion the impact of the redundancy program.  This included a generous redundancy package and efforts to assist affected employees find new jobs.

PLDT and Sun Cellular for example have hired about 390 of the affected Digitel staff as regular employees while alternative employment through service providers was also an option given to other former Digitel employees.

“Those who cannot be absorbed have been provided various forms of assistance prior to the effectivity of their separation, including free workshops on entrepreneurship and livelihood,” he said. 

He pointed that only about 70 Digitel employees have refused to accept the redundancy package and less than 30 participate in the picket outside of the PLDT office in Makati. 

 â€œThe migration of Digitel subscribers to the PLDT network, the streamlining of Digitel operations, and the successful redundancy program approved by the DOLE have all been seen by many PLDT investors as a steps in the right direction for PLDT that will help increase shareholder value,” he added.

PLDT acquired a majority interest in Digitel from JG Summit Holdings through a share swap transaction completed in 2011. Nonetheless, Digitel remains to date to be a separate entity with over 4,800 minority shareholders.