PLDT bares flat rate of P10 for NDD calls

Telecommunications leader Philippine Long Distance Telephone Co. (PLDT) recently introduced a promotional flat rate of P10 for national direct dialing (NDD) calls and calls to Smart and Talk ‘N Text subscribers to encourage usage of the landline and gain new subscribers.

Instead of the usual per minute charge pegged at P5 per minute for NDD and P13.75 per minute for calls to cellular phones, PLDT fixed line subscribers now have to pay only P10 per call regardless of how long the call takes.

PLDT retail business group head Butch Jimenez said this new pricing scheme follows the P50 per day scheme that PLDT tested on Christmas Day and New Year’s Day.

"We expect an increase in new subscribers from these affordable call plans that we have initiated," he said. "The results of our earlier tests proved encouraging, so we are again launching a promo that will make NDD calls and calls to Smart and Talk ‘N Text even more affordable."

During the last four years, PLDT has lost an average of 85,000 subscribers per year primarily due to the popularity of the cellular phone. But with the new rate the company recently tested, PLDT is on track to reverse that trend and start registering a net gain of subscribers for 2005, Jimenez said.

He added that reconnection figures also look promising for PLDT. In 2002, only 32 percent of those that were temporarily disconnected requested for reconnection. In 2003, 30 percent reconnected. In 2004, reconnection rate went up to 50 percent, while for 2005, PLDT is targeting a reconnection rate of over 70 percent.

"One of our main objectives in the retail business group is to make the landline relevant again to our subscribers. Our recent moves seem to prove we are in the right direction," he said.

PLDT’s latest offering shows its dominance in terms of subscriber base. It has opened the new rate to over 19 million Smart and Talk ‘N Text subscribers and nearly two million PLDT landline subscribers. Major independent phone companies in the provinces and PLDT subsidiaries and affiliates such as PLDT Clark Telecom, Subic Telecommunications and PLDT-Maratel are also included.

All told, the plan is open to over 21 million subscribers — a base no other phone company can provide, PLDT officials emphasized.

Recently, PLDT also drove down the price of its narrowband dial-up service, Vibe, to a promotional monthly plan of P99 per month for more than 99 hours of Internet use per month (peak and off-peak hours).

"The subscriber uptake of our new Vibe plan has been overwhelming," Jimenez said.