PLDT: Social networks boost telecom subscribers' activities

CEBU, Philippines - Contrary to impressions that the popularity of social networking, specifically Facebook, threatens telecommunication operators, as the new generation opts to use the portal to communicate rather than using the mobile phone, the Philippine Long Distance Telephone Company (PLDT) believes otherwise.

“We thought, the social networking will take over the SMS. But, surprisingly, it increases the activity of telecommunications subscribers instead,” said PLDT president and chief executive officer (CEO) Napoleon Nazareno.

PLDT’s mobile arm, Smart Communications posted 18 percent increase of SMS volume last year, a strong indication that despite the social networking craze, SMS volumes continue to rise.

Besides, Nazareno said the company is introducing programs and activities that will take advantage the social networking capturing the growing 20 million Facebook account holders in the Philippines alone.

Clearly, he said that the social networking phenomenon is in fact, making the market more vibrant in general, when it comes to communication.

“We are closely observing how the market will evolve,” Nazareno said adding that social networking is not anymore a threat to telecommunications companies, instead it create another avenue for growth.

In a report, Smart Buddy recorded a net additiona of 1.5 million subscribers to end 2010 with 25.3 million subscribers, while Talk “N Text added approximately 1.9 million subscribers to end with 19 million subscribers.

Red Mobile, the brand owned by Smart subsidiary—Cure, had about 954,000 subscribers at the end of 2010. Red Mobile was re-launched in March last year and positioned to meet the market demand for unlimited services, particularly for the “second SIM’ holders.

Cellular voice revenues improved by nine percent to P42.3 million and now constitute 49 percent of total cellular service revenues from 44 percent last year.      

On the other hand, cellular data/text revenues fell 12 percent to P41.5 billion, despite a 19 percent increase in text volumes, as they remain under pressure from the proliferation of lower yield offerings, multiple-SIM ownership, and regulator-mandated load validity extensions.

Meanwhile, on the broadband front, SmartBro, Smart’s wireless broadband service offered through its wholly-owned subsidiary Smart Broadband Inc. (SBI) continued to expand as it wireless broadband subscriber base grew to over 1.35 million at the end of 2010, over 925,000 of whom were on SmartBro’s prepaid service.

Wireless broadband revenues continued to grow strongly, up 17 percent to P6.3 billion, compared with the P5.4 billion recorded in 2009.

Likewise, the company’s mobile internet browsing usage has been growing at a fast clip, with revenues increasing by 37 percent, from P530 million in 2009 to P725 million in 2010. Wireless broadband revenues now account for seven percent of the company’s total wireless service revenues.