PLDT, IBM bundle solutions for telecommuting

Recognizing that the concept of telecommuting is highly dependent not just on having an infrastructure for wireless Internet access but also on the availability of affordable notebook computers, the Philippine Long Distance Telephone Co. (PLDT) entered into a strategic partnership with IBM Philippines to drive subscription to its six-month-old wireless Internet connectivity service called WeRoam.

The first of its kind in the local market, IBM and PLDT’s WeRoam Unleashed bundling program offers corporations a way to lease as many premium ThinkPad notebook computers as they need.

The ThinkPads with WeRoam features can connect to the Internet via GPRS/EDGE using Smart’s wireless coverage, or via the more than 180 Wi-Fi hot spots provided by Airborne Access, all complemented by PLDT’s extensive broadband IP network.

PLDT WeRoam is a service using a GPRS/EDGE aircard with a SIM designed not just for notebooks but also for desktops.

Both companies are promoting WeRoam Unleashed as a cost-effective strategy for increasing manpower productivity while reducing hardware and communication costs.

Joaquin Quintos IV, IBM Philippines president and general manager, says, "Philippine business is ready to embark on anytime, anywhere operation using telecommuting tools like ThinkPad and WeRoam that will increase employees’ productivity."

IBM Philippines is an advocate of the mobile office and implements a "hotel system" to accommodate telecommuting employees reporting now and then at their head offices.

But aside from making employees become more productive at work, the WeRoam Unleashed bundling program can also hopefully allow them to lead a more balanced way of life, says Ernesto Alberto, PLDT senior vice president and head of the corporate business group.

Value Proposition

PLDT officials cited case studies made by the Gartner Group, an international business research outfit, showing that when companies replace their desktops with laptops, their employees generally increase their productive work by an average of three hours a week.

When the laptop has Internet access, another eight hours of productive work are added to the employees’ productivity, bringing a total of 11 hours more of productivity per week because they can telecommute. The Gartner study concluded that the increase in productivity more than paid for the higher cost of the laptop than of the desktop within the first year.

"This means that in one month, a user with a notebook with wireless connection gets 44 hours more productivity," says Nerissa Ramos, PLDT first vice president and corporate business solutions head.

"If an employee gets P300 per hour, the added productive labor hours in pesos (amount to) P3,600 for someone with a notebook only, and P13,200 for someone with a notebook with wireless connectivity," she adds.

Instead of buying a ThinkPad notebook outright, the PLDT WeRoam Unleashed promo allows customers to pay for it as part of the monthly PLDT WeRoam service fee. The cost of the PLDT WeRoam with a ThinkPad is not a capital expense, but an operational expense, says Ramos.

"In the past, companies need a separate subscription to wireless connectivity and separate purchase of a notebook. With our partnership with IBM, companies can now avail themselves of affordable connectivity with a ThinkPad bundle. The business model is that a company need not spend outright for a fleet of laptops, but through a low monthly payment," Ramos adds.

The leasing programs are available in 18 months or 12 months for ThinkPads with WeRoam Mobile Internet or WeRoam VPN (virtual private network). The cheapest bundle costs P3,799 monthly for 18 months for a ThinkPad R50e MA9 with unlimited GPRS/EDGE VPN and unlimited Wi-Fi Internet access.

The most premium package goes for P9,699 a month for one year for a ThinkPad X40 J44A with unlimited GPRS/EDGE Internet and Wi-Fi access.

Outside this promo, PLDT charges P2,000 a month with P2,500 activation fee for WeRoam Mobile Internet, and P1,500 with P2,500 activation fee for WeRoam VPN.

Other notebook models in the PLDT WeRoam bundle are the ThinkPad R50ePD2 and ThinkPad R50e DA2 which are available at IBM resellers Unison, Creative Technologies and Ng Khai Development.

The package includes PC wireless access card and anti-virus software. WeRoam service specialists say they have put in place at least three layers of system authentication on the IP broadband network, on the GSM network, and on the notebook to make the service secure.

Access Market

Without giving away the number of WeRoam subscribers at present, Alberto says they are targeting up to 12,000 customers within the first year.

"To put that into context, the first year we launched digital subscriber line (DSL) two or three years ago, we only managed to have a thousand subscribers, so the 12,000 subscribers for WeRoam is a pretty ambitious target. I’m confident that partnering with IBM will make it more doable," says Alberto.

Ramos concurs, saying that the PLDT-IBM partnership will "reshape the Internet mobile penetration (index) in the country."

Based on IDC’s latest research, Philippine Internet and eCommerce 2005-2009 Forecast, the number of Internet users in the Philippines registered at 11.8 million in 2004. To grow this further, IDC notes it is essential for market players to first identify and then deliver the distinct types of access and services that would cater to specific requirements of different consumer types.

IDC’s report sees Internet buyers in the Philippines growing at an estimated 22 percent compound annual growth rate (CAGR) for 2005-2009, a growth that can be attributed to the accessibility and affordability of broadband connections, particularly of asymmetric digital subscriber line (ADSL).

In another report, IDC says subscribers of the country’s total Internet access services in 2004 reached 3.2 million or a 45 percent growth from 2003. Dial-up continues to be the most popular Internet access service, with broadband access, particularly ADSL, fast catching up.

IDC also expects wireless broadband offering to be the next area of competition among local Internet access service providers.

Meanwhile, PLDT’s Alberto is proud that with WeRoam, they finally have a service that represents what the industry has long been talking about, which is convergence.

"PLDT WeRoam is a convergent solution using the combined infrastructure of PLDT fixed line and the over 5,000 cell sites or base stations of Smart that are all GPRS-capable. We’ve been speaking of convergence for years now and PLDT WeRoam is a true representation of that," he says.

Aside from bottomless Internet over GPRS/EDGE and Wi-Fi, PLDT WeRoam also includes international roaming as a value-added service.