Emerging technologies to shape PLDT’s future

Discussion in 'DSL & Info Tech News' started by se7en2wo, Jun 21, 2005.

  1. se7en2wo

    se7en2wo Member

    Emerging technologies to shape PLDT’s future

    Telephone giant Philippine Long Distance Telephone Co. (PLDT) has identified three emerging technology trends that would shape its future in the industry.

    PLDT chairman Manuel V. Pangilinan is optimistic that the coming years for the company remain promising amid these emerging trends.

    He foresees new players would be competing in the third generation (3G) technology, voice over IP (VoiP) and broadband markets.

    The second trend is the arrival of new and transformational technologies especially in broadband which will alter the current buiness models.

    "These disruptive technologies would bring with them the advantages of larger capacities for voice, data and video services at lower incremental cost per subscriber, enabling PLDT to offer a new generation of bundled products and solutions at lower cost," said Pangilinan.

    On the other hand, "we could see the disadvantages of lower prices and consequent pressure on our margins in the future."

    The third trend is the growing importance of an integrated and convergent telco that is able to offer new generation voice, video and data products and services on a new and converged telecoms network.

    Pangilinan warned that telcos whose business rests on a single platform are likely to diminish in both strength and relevance because the market in the future would favor those telcos that offer richer, broader, newer, more innovative products, solutions and services at cheaper prices.

    PLDT’s response to these challenges is to invest in the new generation network and in marketing initiatives made imperative by the market that it would change.

    "We’ll continue to focus on achieving our target core earnings and cash flows, whilst keeping our expense in check. Core earnings because rising profitability will lift our share price. Cash flows because we want to reduce our debts further and increase cash dividends which will reinforce the upward momentum of our share price."

    Pangilinan expects PLDT’s dividend payout this year will hit 30 percent of earnings, rising to 40 percent next year and 50 percent in 2007.

    PLDT is converting its wireline networks from being voice-based to databased and its 2G to wireless broadband both using as its core a more efficient, more cost-effective Internet packetbased new generation network.

    "This transformation to IP-based systems will enable PLDT to offer a wide range of new generation products and services at lower costs. This reflects our view that in the future, voice will become cheaper as delivery pipes expand and data requirements of corporations and individuals increase as broadband gains more traction," said Pangilinan.

    He expects video services to intrude into PLDT’s business gradually and significantly.

    "A higher level of coordination and cooperation among our three major business groups — wireless, fixed line and ICT — is being undertaken to achieve the benefits of an integrated network and convergent model."

    PLDT’s challenge in the medium term is how to maintain its growth momentum in the face of a maturing market whose dynamics rely on existing technologies, Pangilinan said.

    And its long-term challenge is finding the growth offered by new technologies.

    "If we grasp the moments tendered by disruptive technologies, if we become low-cost provider because of the economies of scale that our networks provide, if we are an integrated operator and a dedicated innovator, I am confident that PLDT would conquer the future," Pangilinan added. (Edu H. Lopez)

    http://www.mb.com.ph/issues/2005/06/17/ ... 37176.html

  2. This is a welcome news.

    However, PLDT, and other telecom companies, have to improve their existing services first before venturing into these new technologies. Poor quality of service makes one to think of finding better ways of getting the same services with better qaulity.

    Kagaya na lang ng landline - sino ba ang matutuwa kung lagi na lang walang dial tone ang telephone mo? :x eh kung may DSL ka pa, paano na lang? :evil:

    The one thing that is wrong PLDT is its sub-contractors. Is there anybody in PLDT who is monitoring the works of their sub-contractors? After they install the wires from the cabinet to your home, and they hear a dial tone, that's it! Their job is done! No one, I mean NO ONE in PLDT inspects the routing of the cable, how the cables are supported, etc. Kung may request ka na DSL service sa linya mo, yun palalng cabinet na pinag-kunan ng signal mo eh 'di 'pwede sa DSL, re-wire na naman. Doble trabaho na, poor quality pa!

    I guess it's about time these telecom companies re-think their strategies. I'd like to that PLDT lacks in strategic management and marketing management.

    Batu-bato sa langit, ang tamaan huwag magalit. :roll:


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