Globe mobile business rakes in P54B in 2011

CEBU, Philippines - Despite the tough competition, and maturing industry marked by peaking penetration levels, Globe Telecoms reported an increased revenue generation of its mobile business in 2011, to P54.0 billion from P50.0 billion in the previous year.

The mobile telecom industry in the Philippines, which has been experiencing eroding prices and margins resulting from lower-yield unlimited and bucket service offerings, was expected to contract last year and even in the coming years.

However, the Ayala-controlled telecom company was able to manage slight growth with its mobile business owing the company’s innovative and customizable postpaid plans, which provided the stimulus that helped revitalize the brand.

In a report, Globe Telecoms revealed that the company’s prepaid brands also made a significant headway last year, anchored on value-for-money on-net and all-network offers, attractive loyalty rewards, and a refreshed Globe prepaid brand through its “Today t Witt” campaign.

The Company similarly made significant gains in its international business unit with its pioneering unlimited IDD offer and the innovative service that assigns a virtual US landline number to a subscriber, enabling him to receive calls from the US charged at the local US rates.

The mobile business also introduced the latest gadgets to the market such as the much anticipated Apple iPhone 4S, iPad2, the nLwest handsets from BlackBerry@, and the latest devices running on Android.

According to the report, these efforts delivered incremental revenues which allowed the mobile business to grow against last year and last quarter.

Mobile data revenues, which accounted for 52 percent of total mobile service revenues, increased by 11 percent from P25.5 billion to P28.2 billion in 2011.

Data revenue growth was broad-based, with improvements in regular, unlimited and bulk SMS, as well as mobile browsing revenues and other value-added services. Mobile browsing revenues closed the year at P2.0 billion, up 52 percent from previous year's level driven by increased smartphone penetration among subscribers coupled with the Company's

introduction of various affordable mobile data plans.

Against third quarter, the same trends were observed with fourth quarter data revenue growth coming from all key products particularly regular and international SMS, bulk and unlimited SMS, and mobile browsing services.