Telecom price war heats up between PLDT, Globe

The price war among telecom companies (telcos) continues to heat up as two of the country’s biggest landline service providers have announced plans of further bringing down their fixed line charges nationwide.

Industry leader Philippine Long Distance Telephone Co. (PLDT) said it is planning to extend its P10-per-call promo to June 11 as the number of callers, as well as the total number of calls using the service continue to increase since its launch last Feb.14.

This promo has allowed PLDT landline subscribers to call other PLDT subscribers nationwide as well as Smart and Talk ‘N Text mobile subscribers for a flat rate of only P10 per call instead of the usual per minute rate.

Meanwhile, Globe Telecom announced that those who would apply for a Globelines postpaid landline between March 21 to April 19, 2005 will enjoy free Globelines-to-Globelines calls anywhere in the country.

"This means no per minute and no per call charges. This is free nationwide calls for all Globelines postpaid subscribers at no extra charge," Globe officials said.

PLDT retail business group head Butch Jimenez disclosed that requests from their subscribers to extend the promo are leading them to move in this direction. Calls to PLDT’s customer service hotline, 171, have increased from 5,000 calls per day to over 35,000 daily, with most inquiries related to the P10-per call promo.

"With the market’s strong positive reaction to the offer, we are thinking of making this a permanent plan. They like the product’s simplicity and affordable price," he said.

According to PLDT, the big advantage of its P10 per call promo is that it is open to the 20 million subscribers of Smart and Talk ‘N Text plus the two million landline subscribers of PLDT. "That’s 22 million reasons why the competition cannot come close to what PLDT can offer its subscribers," Jimenez stressed.

The scheme has also driven strong demand for PLDT’s landline. PLDT business offices nationwide are reporting a strong uptake in applications for PLDT landlines. PLDT has even offered free cordless phones imported from Europe to new subscribers.

"We hope to end the year with a net station gain, as against a net station loss that PLDT has experienced over the last five years," Jimenez added.

He likewise revealed that provincial cities serviced by other telcos have passed local resolutions encouraging PLDT to enter their city.

Individual subscribers from competing telcos nationwide are likewise requesting for connections to PLDT to avail of the P10-per-call offering.

But while PLDT is aggressively pushing its P10-per call promo, sources within the PLDT group say they will file a complaint against Globelines’ offer of free NDD "forever."

"How can they offer it forever if their NTC (National Telecommunication Commission) approval is only until March 30, 2005. That is blatant disregard of NTC rules. They should get approval first before coming out with ads and promises," the source said.

Globelines head Ramon Antonio Pineda said as part of Innove Communications’s thrust to help in nation building, it is opening up its network to its subscribers to make local and inter-province or inter island calls available to everyone and more affordable.

"We are excited about this new offering and we are happy to launch it to the subscribers. We couple our investments in advanced telecommunications facilities with services like these to be able to bring about products that will prove to be beneficial to the industry and especially to the Filipino consumers," Pineda said.

Globelines marketing head Jose Antonio Mapa Jr. said what makes Globelines to Globelines Toll-Free NDD Call Promo different is that it is simple and easy to use and avail. For current Globelines postpaid subscribers, all they have to do is call the customer care hotline numbers for Luzon and Visayas and Mindanao to start toll-free NDD calls.

They added that what sets the Globelines promo apart is that this is a continuing offer. New and existing Globelines postpaid subscribers who avail of the toll-free promo will enjoy the service for the duration of their subscription.

"Globelines is the first telecommunications company to open up its communication lines nationwide and do away with the NDD charges. Expect more pioneering services from us with the interest of our customers always our top concern," Mapa said.

He added: "This new innovative offering would mean more opportunities for subscribers to enrich their lives as well as their businesses. It is a great time to be with Globelines now and things just keep getting better for our subscribers as we continue to be creative with our service offering."

Globelines, Innove’s residential and business brand, pioneered the One Province One Rate in 2002 and came up with the Cebu Enhanced One Province One Rate last Dec. 13, 2004.