BayanTel pins hopes on wireless landline service

Lopez-owned telecommunications company Bayan Telecommunications (BayanTel) expects its wireless landline service to revitalize the local wireline industry with a projected 10 to 15 percent annual growth rate in subscribers within the next two years, reversing a trend of negative growth since 2006.

According to the Frost and Sullivan’s Asia Pacific residential voice market study released recently, the Philippine landline subscriber base registered negative growth for the first time in 2006, mirroring the trend in the rest of the world.

As more people opt for mobile phones as their primary mode of communication, the study showed that the residential landline subscriber base has a negative CAGR (compound annual growth rate) of 3.3 percent.

The study also cited that revenues derived from the traditional residential fixed line market is estimated to dwindle rapidly at a negative CAGR of 7.8 percent over the period 2006-2013, and more and more operators are focusing on offering data services to augment their voice revenues.

But company officials noted that the performance of Bayan’s Wireless Landline (BWL) service defies industry trends, as it is set to end the year with 100,000 landline subscribers, effectively invigorating by 30 percent the company’s landline subscriber base.

“The success of BWL is proof that there is significant demand for basic voice services. This is deeply ingrained in the Filipino psyche of wanting to always keep in touch with family and friends through talking and not just sending SMS (text) messages. We know that the traditional landline is still the most efficient way of communication, but BWL adds the mobility feature within the local calling area which people now expect from their communication device, “said BayanTel chief executive consultant Tunde Fafunwa.

He added that contrary to conventional wisdom, 80 percent of their subscribers still prefer traditional desktop units which only underscores that, with the right technology such as wireless landline, people can rekindle their affinity for landlines.

“Just when everyone thought the landline has spiraled downward to insignificance, it has proven to be useful once again,” Fafunwa stressed.

As the company’s flagship product, BWL’s revolutionary turnaround of the landline industry mirrors the company’s refreshed and revitalized brand identity.