Bayantel to come out with own cut-rate offer

Discussion in 'DSL & Info Tech News' started by dslmaster, May 2, 2005.

  1. dslmaster

    dslmaster Administrator Staff Member

    Bayantel to come out with own cut-rate offer

    RESPONDING to the price challenges served up by its competitors, the Lopez-led Bayan Telecommunications Inc. this week will come out with its own "buffet" service.

    Ray Montinola, BayanTel vice president for Metro Manila retail, declined to reveal in full the details of the new service.

    He only said that the service would cover international direct dialing, national direct dialing and Internet services.

    He said the soft selling of BayanTel's buffet offering had actually started, but the full-blown launch would not take place until this week.

    BayanTel's new buffet offering, like similar services offered by its competitors, would not form part of the Lopez-owned telco firm's permanent suite of services.

    It would just be a promotional offering, Montinola said.

    He said BayanTel had been looking at its competitors' buffet offerings, particularly the P10 flat rate scheme of the Philippine Long Distance Telephone Co., to determine the effect of such offerings on its landline business.

    Based on internal assessments, Montinola said that PLDT's P10 flat rate scheme had affected neither its churn rate nor its new subscriber acquisitions.

    The effect, albeit minimal, was felt in its national long distance revenue, he added.

    "We have data showing that 10-15 percent of BayanTel subscribers also have PLDT landlines," Montinola said. "There's a minimal effect on our NLD revenues because some of our subscribers, who also have PLDT landlines, choose to use their PLDT phones for long distance calls."

    Montinola also explained that landline subscribers chose to have landlines installed not for long distance calls but primarily for local and even cellphone calls.

    BayanTel's current offerings, the P499 and P699 packages, gave subscribers "the certainty of being able to use their phones," even just for the basic service, he added.

    "Not everyone needs to call long distance."

    BayanTel's landline subscriber base grew 9 percent in the first quarter to a little more than 300,000 subscribers.

    Net revenues were placed at P1.4 billion in the first three months of the year, growing 7 percent from the P1.3 billion posted in the same period last year.

    By Abigail Ho
    Inquirer News Service

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