Connectivity

Another plaque has been placed today in the conference room adjacent to the office of Globe Telecom, Inc. president and chief executive officer Gerardo Ablaza, Jr. The plaque – for being one of the top five companies in the Philippines – was given last Thursday in Hong Kong by the Far Eastern Economic Review.

FEER annually asks corporate chief executives in the Asia-Pacific to rank companies according to five criteria: high quality of services and products; innovativeness in responding to customer needs; long-term vision; financial soundness; and companies that others try to emulate.

Globe Telecom placed fourth in the overall ranking among Philippine companies headed by Jollibee Foods Corp. and was one of three Ayala-controlled companies in the top five list. In terms of criteria, Globe placed second–its highest rating–in innovation; third in the quality of its products/services; and fourth among the companies that others try to emulate.

"We see the FEER award as an offshoot of what we do. We remain focused on serving our customers/subscribers and the award, which placed us at number four in 2002 from number six in 2001, recognizes this," said Globe’s head of the wireless business group Ferdinand dela Cruz.

Changing landscape

Much of the company’s innovativeness comes from its wireless business, which has grown by 43% year-on-year to 6.6 million subscribers.

"The landscape is continuously changing. There are so many moving parts," said dela Cruz.

Take, for example, the network. Wide selection and different capabilities (in terms of speed and memory) have brought down the price points of cellphones and have opened up possibilities in services offered. A GPRS-enabled phone can now be had for less than P10,000.

New Globe services include Java games, a first in the country for interactive or net games. The 3650 allows the customer/subscriber 10 seconds of video capture such as streaming or downloading from the internet.

For corporations, there are the text hotline to handle customer problems and the direct serve to take the orders of customers.

Another factor to consider is the cellphone subscriber.

"It is a mistake to put only one face to the business. We have a wide range of subscribers, each one of whom is passionate and deeply involved with his cellphone. The trick to meet, as much as possible, the needs of each of their lifestyle," said dela Cruz.

As a marketing strategy, Globe has segmented the market. By brands, there is Globe, which caters to the high- to mid-range user who is always on the look out for something new; and Touch Mobile, which caters to the entry-level user.

By payment scheme, Globe remains the dominant player in the post-paid business, growing the segment by 13% last year. The pre-paid business, however, continues to account for the bulk or 90% of wireless revenues.

Opportunities

"For subscribers, affordability or price is a factor but it is not as important a consideration as the signal/network coverage," said dela Cruz. "A phone is only as good as its ability to reach the person on the other line."

To grow the business, Globe intends to build more cell sites outside Metro Manila this year, particularly in cities which would help provide system connectivity.

Last year, the company rolled out 400 cell sites. A similar number–or higher–is expected this year.

"Before, the strategy was one size fits all. Now, we’re looking at pockets of growth. We’re further segmenting the market and putting our resources where we can grow most," said dela Cruz.

As it is, Globe’s financial muscle is formidable. Aside from Ayala Corp., Globe’s other major investors are Asia’s biggest telecommunications company, Singapore Telecom; and Europe’s biggest telecom, Deutsche Telekom.