Fixed line network to be obsolete soon

Telecommunication's International Direct Dialing (IDD) feature may take its exit in the next three years, as telecommunication giant Philippine Long Distance Telephone Company (PLDT) will convert is entire fixed line network into Internet-based capable service.

This means, that expensive IDD service will already become a "thing in the past" as technology now provides global communication almost in "no cost" feature.

In an interview with PLDT president Napoleon Nazareno, he said that through the company's P25 billion to P30 billion investments in deploying the Next General Network infrastructure, PLDT's nationwide subscribers will be able to use IP (Internet Protocol) based telecommunication services, in both fixed line and wireless network.

Industry sources that telecom companies' IDD or long distance service had experienced a significant slowdown in business performance in recent years, because of the advent of IP based telecommunication tools or the Voice Over Internet Protocol (VoIP).

However, Nazareno said PLDT's IDD performance has only suffered a minimal decline, because it complements the wireless service offered by its subsidiary Smart Communications.

He said incoming IDD calls dropped, but volumes of outbound calls are being caught up with its wireless or cellular service.

While the company is bound to give up in seeing good business prospects in its fixed long distance calls both in IDD and Domestic calls, or the entire traditional fixed line business in general, Nazareno said the conversion fixed line to broadband enabled network, will drive a double-digit growth of the company's fixed line business.

Currently, PLDT has 2.3 million fixed line subscribers. Nazareno said with the introduction of next generation network (NGN), subscriber-based is expected to go up to three million in the next three years.

In a dialogue with the members of the Cebu Chamber of Commerce and Industry (CCCI), Nazareno said PLDT is aiming to blanket the entire country with broadband enabled telecommunication tools within two to three years.

He admitted though, that the company's decision to convert its entire fixed line network to allow IP-based technology will erode some of its revenue targets, however embracing it (technology) is the only choice.

He mentioned that because of PLDT's wide backbone for fiber connectivity in the Philippines, it can easily become the largest VoIP service provider in the next few years.

Both wireless and fixed line businesses of the conglomerate are now trying to introduce Internet literacy even in the remotest part of the Philippines.

PLDT's fixed line network which will be providing broadband access to subscribers is expected to cover the 99 percent of the entire country in two years.

This means that like the cellular phone trend, more and more people will get to subscribe broadband access through fixed line network in the future, especially if the cost of Personal Computer (PC), even Laptops will go down further.

The penetration of the fixed line business in the Philippines has only reached to four percent. Wireless or mobile phone penetration on the other hand is now at 45 percent level.