Digitel banks on Sun Cellular integration to meet challenges

MANILA, Philippines - Gokongwei-owned Digital Telecommunications Philippines Inc. (Digitel) will continue to respond to demands of the next generation by capitalizing on its integration with its mobile subsidiary Sun Cellular, company officials said. 

They noted that from providing traditional telecommunications businesses, the company has moved to offering services that are needed in a more converged and highly competitive networked economy.

Digitel, which is 47.45 percent owned by JG Summit Holdings, said it will focus on developing products and services driven by fixed-mobile synergies. As this happens, the company will continue to be supported by two of its stronger brands SunTel wireless landline and DSL plus (broadband and landline bundled service) while enhancing the other brands.  

SunTel, Digitel’s wireless landline service, took off last year with a remarkable subscriber growth. By leveraging on the GSM network of Sun, which provides better coverage and more value-added services to its subscribers, Suntel’s services are beginning to gain awareness in most all Digitel service areas as shown by its steady increase in subscriber base

Officials said with the support of state-of-the-art enhancements in network infrastructure and coverage and capacity accelerated, Digitel is now looking at further expanding the wireless landline service to areas outside Luzon.

Digitel DSL plus, the first DSL and landline bundle in the country, made Internet connectivity available at competitive rates to booming urban centers and progressing rural areas in Luzon. Committed to support the academic and social formation of the new generation of globally competitive youth, they said Digitel DSL plus shall continue to highlight the advantage of the Internet as a powerful learning tool.

The thrust towards education allowed Digitel DSL plus to gain the preference of parents, propelling DSL to a total net subscribers of almost 120,000 by December 2009, driving DSL revenue to grow by more than 20 percent.

On the other hand, Business DSL slowly eases its way to tap into the small and medium enterprise (SME) market and had so far been well received. Beginning 2008, its Business DSL has registered a significant year-on-year subscriber growth, the company noted.

 Digitel also reported that with mobile alternatives fast encroaching on local exchange carriers (LEC) territory, landline carriers had to innovate to maintain their share of tele-density along with the prepaid mode of access which remains an alternative to postpaid subscription. As of Dec 31, 2009, Digitel had a total of over 600,000 installed fixed lines and over 400, 000 working lines.

Despite this challenging scenario, Digitel said it successfully sustained its two prepaid cards – Digitel prepaid IDD and Digitel prepaid. “With the developments brought by the integration, Digitel prepaid cards will continue to introduce programs that will help maintain its competitive place in the prepaid market,” the company noted.

Officials also reported that in 2009, Sun Cellular continued its run with its best value offerings hitting almost 11 million subscribers.

The prepaid subscriber base grew more than 30 percent in 2009 compared with 2008, fueled by the introduction of more affordable and innovative products. Total top-up increased more than 50 percent versus 2008 levels, led by Xpressload which leapt almost 80 percent.

The company added that in the postpaid segment, Sun continued its aggressive ascent towards market dominance securing a tighter grip as the preferred postpaid brand with seven out of 10 new postpaid subscribers availing themselves of Sun Cellular products and services. Subscriber base grew more than 40 percent bannered by Sun Cellular’s Postpaid Plan 350.

In 2009, the Sun Broadband Wireless service saw a huge increase in subscriptions owing to the innovative strategies that grabbed the market’s attention. Initially offered via postpaid subscription, Sun Broadband Wireless offers the lowest unlimited broadband plan at P649 per month. Sun brought down prices of prepaid mobile broadband kits to as low as P888 – the lowest in the market. It also introduced the lowest prepaid unlimited broadband load in the market –the P5 /one- day unlimited load. More affordable loads have since been launched like the P10, and P25 SBW prepaid loads.