PLDT to forge partnerships with web portal companies

Telecommunication giant Philippine Long Distance Telephone Company (PLDT) has expressed interest to eventually ink partnership with web portal companies, such as Yahoo, and Skype, to maximize the Internet Protocol (IP) business implementation of the company in the next few years.

PLDT chairman Manuel V. Pangilinan said yesterday during the opening of the 4th Asian Carriers' Conference (ACC) held at the Shangri-La’s Mactan Island Resort, that there is need for PLDT to fully embrace a full IP platform as threat to its voice legacy business continues.

This time the threat is particularly coming from VoIP and illegal bypass to the PSTN [Public Switch Telephone Network]," said Pangilinan.

He said the growth of broadband has stimulated the use of free VoIP applications such as Yahoo Messenger (YM) and Skype.

"The advent of dual-mode mobile phones and rising fee Wi-Fi in public places, point to increased VoIP. We can expect that will cannibalize traditional voice revenues," Pangilinan stressed.

Soon, PLDT may encourage a partnership deal with web portal companies, to maximize the VoIP technology, as PLDT is preparing to roll out its nationwide IP platform.

Although, the infrastructure for full IP telecommunication system is already in place, Pangilinan said the mainstream implementation would also depend largely on the PC, or laptop penetration in the Philippines.

According to Pangilinan, PLDT, which maintains its mobile telecom arm Smart Communications is slowly accepting the reality of technology especially the VoIP innovation.

"VoIP is something that we have to accept. As we 'broadband" the entire country, we try to manage the transition, as much as we can, so as not to 'cannibalize' the profit picture, particularly in the international voice service," he said.

In the past, PLDT's voice business especially for international calls, accounted for slightly more than 50 percent of its revenues. This year, international voice revenues for both fixed and mobile will account for no more than 25 percent of the company's consolidated revenues.

Nevertheless, voice business of PLDT is expected to grow by three to five percent this year, growth driver will be its mobile voice, not the fixed line part of the business.

Eventually a partnership or convergence between PLDT and big web portal firms is seen to maximize fully the VoIP technology.

Even as of now, VoIP is not fully a free-technology, users are still required to pay for premium services, although at lower cost.

He said when the full IP platform will be implemented across the country, VoIP will be integrated in PLDT's telecommunication service packages, may be in partnership with web portal companies.

As of now, PLDT is still uncertain if the "free" voice service available through Skype and YM will be given a charge in the future, or it will be part of the package to be offered by the company.

Pangilinan was the keynote speaker in the 4th ACC now being held at Shangri-La’s Mactan Island resort and spa, which is attended by 580 delegates from Asian countries and non-Asian countries such as North and South America, Middle East and Europe. – Ehda M. Dagooc