Synopsis
The number of mobile telephone subscribers in the Philippines somehow manages continuing growth. For a long time this was in large part due to the popularity of SMS services as well as the relatively higher price and inaccessibility of fixed-line services. In 2009 the global financial crisis had a major impact on the local economy and in turn on the local mobile market, pulling the growth rate down. Nevertheless the market continued to grow and 2010 saw a positive rebound. PLDT subsidiary Smart continued to dominate the market and by mid-2011 held a 53% market share, followed by Globe Telecom with 31% (down from 36% two years earlier) and Digitel with 16%. The major market development in 2011 was PLDT’s move to acquire Digitel, a move that had been widely criticised. (The acquisition had not been received regulatory approval, as of September.) This report provides an overview of the major operators in the Philippine mobile market with some pertinent statistics.
Key developments:
PLDT negotiated a deal under which it successfully acquired rival operator Digitel. The deal was subject to approval by the various regulatory authorities, including the National Telecommunications Commission (NTC). The move was set to create a duopoly between Smart and Globe Telecom; however, with Smart holding around 80% of the subscriber base many in the industry and government were concerned that it was effectively a monopoly that was being put in place. Globe proceeded to challenge the acquisition in various ways. It was urging the NTC to make PLDT give up some of its spectrum, should PLDT’s acquisition of Digitel proceed. Globe also petitioned to have PLDT’s licences revoked on the grounds that PLDT and subsidiaries, including Smart Communications, were controlled by foreign shareholders to an extent beyond what was legally allowed.
Companies covered in this report include:
PLDT, Smart Communications, Talk ‘N Text (TNT), Red Mobile (CURE), Globe Telecom, Digitel, Extelcom, Bayantel, BellTel (Bell Telecom).
