PH mobile phone subscribers to hit 117M by 2016

The number of mobile subscribers in the Philippines is expected to reach 117 million by end-2016, according to a report by Business Monitor International (BMI). BMI's Philippines Telecommunications Report indicated that the country is expected to breach the 100% mobile penetration rate by end-2012, and will have a 114% penetration rate by end-2016. The growth in subscribers will be mostly due to prepaid users, who have multiple SIM cards. "We continue to expect a relatively strong growth momentum in the next few years due to the prevalence of prepaid subscribers, which helps to inflate the headline figure through multiple SIM ownership and inactive subscriptions," the report said. There will also be continued growth in fixed-line services in the Philipipnes. "While most countries are experiencing declining demand for fixed-line services, we continue to see the number of fixed lines in the Philippines increase, which we attribute to operators’ efforts to expand into underserved rural regions," the report said. Broadband subscribers are also expected to increase significantly to 10.23 million in the next four years. "We expect the Philippine broadband industry to outperform alternative segments due to increasing consumer demand and operators’ determination to tap into the growth potential by expanding and upgrading their fixed and mobile broadband networks. We envisage 10.233 million broadband subscribers in the country at the end of 2016 with mobile broadband the key growth driver," it said. The report says there has been no noticeable changes since Philippine Long Distance Telephone Company (PLDT) and Digital Telecommunications Philippine (Digitel) merged. "However, we are anticipating drastic developments in the future such as the imminent entry of San Miguel Corporation and the issue of Connectivity Unlimited Resources Enterprises’ 3G spectrum as well as the fifth 3G licence, which has been vacant for a number of years. Besides SMC, we expect Globe Telecom and Multi-Media Telephony to be interested in the 3G licences," the report added.

NTC allows entry of new broadband player

Multi-Line Communications Inc. has been granted a permit to offer broadband services by the National Telecommunications Commission (NTC). Multi-Line Communications, Inc. now has the permit to operate and maintain data leased channel circuit network in the provinces of Cavite, Laguna, Batangas, Rizal, Pampanga, the National Capital Region, and Regions 5 to 13. The NTC said it found Multi-Line legally, financially and technically qualified to offer wireless and wireline broadband services. The company was required to have a total equity of P55 million for 5 years, but it should have P26.7 million for the first 2 years "With the applicant's increase in paid-up capital of P27 million, the applicant can be considered capable of undertaking the proposed project," it said. Multi-Line will increase its authorized capital stock from P1.6 million to P108 million once it secures approval from the Securities and Exchange Commission. The company is setting aside P183 million in capital expenditure for the first 5years of operation. Based on its 2010 annual report, Multi-Line's assets are at P981 million, liabilities stood at P713.64 million and capital at P267.36 million. The firm's revenues will come mainly from subscription of wireless local loop (WLL) and wireless broadband internet (WBI). It plans to sell its WLL service at P15,000 per month plus a one-time charge of P15,000 per client with an average of 2mbps bandwidth requirement. All of its clients will be charged P38,400 per year for the lease of subscriber equipment installed. The NTC required Multi-Line to start offering WLL and WBI within a year from March 5, the day when its application was approved. The provisional authority granted to Multi-Line is valid for 18 months.

Hello, telpad; goodbye, landline?

The country's biggest telecommunications firm, Philippine Long Distance Telephone Co. (PLDT), said it expects most of its landline subscribers to switch to "tablet" landlines in 3 to 5 years. Of its 1.6 million landline subscribers, PLDT sees that every year, at least 100,000 of them will be converting their old units into a Telpad -- or a landline and broadband DSL service packed in an Android tablet. “Landlines are here to stay but as broadband rushes in we want our subscribers to be able to maximize the data rich and media rich devices out there. We are moving towards data-powered devices as we provide more bandwidth, faster internet speed,” said PLDT spokesperson Mon Isberto on Wednesday, April 11, during a launch event of PLDT Telpad’s exclusive application. “Apart from traditional voice calls, subscribers who will switch to a Telpad can surf the Internet because Telpad is bundled with a broadband service," added Isberto. While the landline business has long been eclipsed by wireless mobile phone services, which suit the communication needs of Filipinos in the country's 7,100 islands and almost 10 million Filipinos abroad, the wireline-based services are also seen as another avenue to introduce new products, mostly as platforms for online or Internet-based services. Isberto explained that PLDT has invested in replacing copper lines for its landline service with fiber lines, which enhances data-rich devices and services like Telpad. "We see its full potential in 3 to 5 years," noted PLDT Home Business head Ariel Fermin. "We have 1.5 to 1.6 million landline subscribers and we are potentially looking at all of them to switch using a Telpad." PLDT launched Telpad in December 2010 and the company is boosting take up by introducing new applications that come along with the unit. The Telpad has two models running on Android platform, with subscribers having access to over 450,000 applications available for download. Anther Telpad unit is also equipped with a 0.3 megapixel (MP) front and a 3 MP rear camera. Each Telpad comes with unlimited calls and unlimited broadband service. Plans start at P1,849 at 1.5mbps.