All-network offers buoy TM take up in first half

CEBU, Philippines – Globe Telecom's mass market prepaid mobile brand-TM (TouchMobile) posted a strong subscriber take up for the first half of this year, fueled by its attractive all-network offers.

Despite the very tough competition of getting subscribers in the mobile industry, TM registered a two percent growth in the first six months of 2010, with a total of 10.6 million subscribers.

"TM is the first to offer a complete portfolio of superior All Network service, which has appealed to the mass market. The TM All Network service, our main growth driver this year, makes an array of call and text offers available to TM subscribers nationwide. It allows our subscribers to communicate to their friends from other networks easily and at a more affordable rate without having the need to regularly change their SIM cards. As we launch new affordable offers to cater to the needs of subscribers in this segment, we expect to double our subscriber base by year-end," said Issa Cabreira head for TM marketing.

The TM ALLNETCOMBO is an all-in-one promo that provides 100 text messages and 10-minute consumable calls to all networks for only P25 a day. TM subscribers can also avail of TM ASTIGTXTALL. For P15 per day, they can already enjoy 150 text messages to all networks. They can also avail of TM ASTIGTAWAG20, which gives 15 minutes of consumable calls to other networks for only P20. 

Moreover, as a welcome treat to new subscribers, TM gives a free trial of the featured "All Network" offer by sending BONUS to 8888. This allows the new subscribers to experience the TM All Network offers firsthand.

"We continue to strengthen our TM product portfolio and reward our loyal TM subscribers to provide superior customer experience and market offers especially for the mass market. We also put in place aggressive activation initiatives to sustain the gains we have achieved for TM," Cabreira added.

Last April, TM launched the "TM Astig Rewards," one of the most aggressive rewards programs for loyal customers from the telco industry. TM subscribers earn points based on tenure, reload and usage profile which can be used to redeem gifts and discounts from various retail establishments nationwide.

Overall, Globe, reported a slight decline of its net income in the first six months of this year to P5.1 billion, from the same period last year's P7.2 billion.

Core net income, which excludes foreign exchange and market-to-market charges as well as non-recurring items, recorded P5.2 billion this year, versus P6.9 billion in the same period of 2009.

"Our first half results are reflective of the challenges facing the industry - traffic is growing, but revenues are declining with the market's increasing preference for unlimited services. Competition is becoming more intense, and will likely further intensify as the market slows," said Ernest L. Cu, President and chief executive officer (CEO).

"We have strong brands with good value propositions, a large and loyal retail and corporate subscriber base, and an extensive and robust network. To protect our gains and grow our business, the key is to differentiate ourselves from competition by providing superior end-to-end customer service," Cu added.

The mobile business sustained positive net additions of 732,000 in the second quarter to close the period with 24.6 million SIMs. This is three percent higher than last quarter's base, but two percent lower than last year when the Company deliberately churned out marginal subscribers and recalibrated its acquisition efforts.

Globe Prepaid and TM led the company's first half growth, contributing more than 90 percent of this period's net additions. (FREEMAN)