TM ends 2009 with 9.3 million subscribers

CEBU, Philippines - Touch Mobile (TM), Globe Telecom’s mass market brand, posted a five percent growth in total revenues for 2009 despite the 11 percent contraction in its SIM base.

TM ended 2009 with 9.3 million subscribers, 11 percent lower than last year’s 10.6 million SIMs.

Based on the company’s report, gross additions were down 16 percent year on year to 8.8 million as the company scaled back on some of its aggressive SIM pack promotions as part of the recalibration efforts.

Similarly, efforts to deliberately churn out some of the marginal, lower-quality subscribers resulted to a net reduction of 1.2 million SIMs.

TM subscribers now comprise 40 percent of the Globe cumulative subscriber base compared to 43 percent in 2008.

The brand’s net ARPU (Average Revenue Per Person) for 2009 was five percent lower compared to prior year, but showed steady improvements particularly in the last two quarters of 2009.

The “Republika Ng TM” brand refresh campaign, the distinct positioning of the brand, and the sustained efforts to drive usage through affordable voice and text offerings all contributed to the continue top-line growth of the TM brand, the report stated.

Subscribers acquisition cost (SAC) remained at P34 which is recoverable with half a months ARPU.

Globe provides digital mobile communication services nationwide using a fully digital network based on the Global System for Mobile Communication (GSM) technology.

It provides voice, data and value-added services to its mobile subscribers through three major brands—globe Postpaid and Prepaid, Tattoo, and TM.

Globe Prepaid, Globe Tattoo and the TM are the prepaid brands of Globe.

To enhance usage and retention in the prepaid segment, the company sustained its popular bucket and unlimited voice offerings.

Globe president and chief executive officer (CEO) Ernest Cu said that even as consumer spending remained soft, the company pursued multi-pronged efforts to grow and recover revenue market share for the business.

“To do so, we continued to upgrade our network to improve coverage, quality and reliability. We focused on quality acquisitions to re-grow our subscriber base; unveiled promos to increase share of wallet; enhanced loyalty programs to reduce churn; kept a pervasive presence in distribution channels; and stayed focused on customer service,” he said.

Globe’s overall SIM base stood at 23.2 million, six percent lower than the previous year’s 24.6 million, as the company deliberately churned out marginal subscribers, especially among the prepaid subscribers and recalibrated acquisition drives.

The Philippine wireless industry’s growth slowed down to one percent from six percent in 2008 despite SIM penetration approaching 80 percent, as unlimited and bucket price offers became market staples.

According to Cu, the rising incidence of multi-SIM usage resulting from SIM prices and attractive intra-network offers led to elevated churn rates and declining ARPUs.

Also, the industry took in new regulatory measures such as the extended validity of prepaid loads, the shifting from per minute to per pulse billing, and the amendment of broadcast SMS rules.