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Freeman Cebu Business

The Philippine ISP industry (part 2)

C&C VIEWS - Ed Limtingco - The Freeman

According to the Institute for Development and Econometric Analysis, Inc. (IDEA) latest Industry Trends, Globe Telecommunications and the PLDT group of companies, which consists of PLDT, Smart, Digitel and Sun Cellular, are the major suppliers of broadband in the country.

As per IDEA, Globe has two million broadband subscribers as of end-2013, a 22 percent increase from the previous year. The company’s consolidated revenues reached Php90.5 billion in 2013, a 9 percent rise from its revenues in 2012. Globe’s core net income rose by 13 percent to Php11.6 billion. Broadband revenues amounted to Php10.44 billion in the same year, a 20 percent increase from the previous year. Its strong performance is reflected in significant growth in shareholder value. The company claims that data continues to be a key source of growth. Meanwhile, smartphone penetration is increasing.

For that, Globe invested in a modernized network in preparation for the growing demand for data and Internet connectivity. Database modernization and migration has been completed. Over 7,000 cell sites are now 4G-capable, and there are now LTE sites in key central business districts and tourist spots. Fiberization of target sites are about 80 percent completed, and 3G coverage expansion is over 90 percent completed. Over 9,400 kilometers of fibre has been added to Globe’s existing FOC infrastructure in support of the company’s optical and all-IP transport nationwide network.

Per same published report, on the other hand, the PLDT group consists of PLDT, Smart, Digitel, and Sun Cellular. Consolidated service revenues rose by Php4.3bn or 3 percent year-on-year to Php164.1 billion in 2013 as the Php4.8-billion growth in data and broadband revenues overtook the Php1-billion decline in legacy revenues. Broadband service revenues grew by Php3.7 billion or 16 percent year-on-year to Php26.6 billion or 16 percent of consolidated service revenues in 2013 from 14 percent last year. Mobile Internet revenues of Php5 billion were higher by Php1.8 billion or 59 percent and account for 19 percent of total broadband revenues and 3 percent of consolidated service revenues. Fixed broadband revenues rose by Php1.1 billion or 10 percent to Php12.3 billion or 46 percent of total broadband revenues following an 8 percent increase in subscribers to 962,000. Wireless broadband revenues were up by Php800 million or 10 percent to Php9.3bn representing 35 percent of total broadband revenues.

Greater smartphone ownership, affordable data offers, and engaging content fuel the upward momentum in the group’s mobile Internet browsing revenues. However, PLDT’s subscriber base remains largely untapped as only 15 percent of subscribers owned smartphones at the end of 2013.

PLDT brought into the market PLDT Cloud, a suite of solutions that makes use of PLDT’s new public cloud infrastructure to provide companies with all the benefits of cloud computing. Moreover, PLDT launched SIP Trunk service or session initiation protocol trunk line solution to serve the growing use of IP-PBX or IP-based corporate phone systems in the enterprise market,  according to the researchers of IDEA.

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vuukle comment

BILLION

BROADBAND

DEVELOPMENT AND ECONOMETRIC ANALYSIS

DIGITEL AND SUN CELLULAR

GLOBE TELECOMMUNICATIONS

INDUSTRY TRENDS

PLDT

REVENUES

YEAR

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