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Globe: Consumer-centric strategies to offset rival telecom firms’ merger

First Posted 07:59:00 04/13/2011

MANILA ? A telecommunications company remains confident in the marketing strategies that have made its brand competitive in the market despite the recent merger of two large rival telecommunications companies ? Philippine Long Distance Telephone and Digitel Telecommunications Philippines Inc.

Ernest Cu, Globe Telecom president and chief executive officer, said the effects of the merger would depend on how both entities would use their new assets.

Cu however assured 500 stockholders, who attended the firm's Annual Stockholders' meeting yesterday at the Intercontinental Hotel in Makati, that Globe Telecom would be ready to ?defend its market share? by continuing to implement proven market strategies geared towards the consumer and by focusing its investments in network quality improvement.

?Their (PLDT and Digitel) consolidation undeniably gives them considerable scale. But, Globe has always been a strong challenger to a dominant incumbent and even in the face of a larger opposition, our strategy to differentiate ourselves by providing superior customer experience remains a sound and highly competitive one,? he said.

Cu said that they would continue focusing on developing relevant products for Globe?s retail and corporate customers while enhancing their network to deliver that differentiating superior customer experience.

Cu said that at present, the market revenue share is at 2/3 and 1/3 between Globe and PLDT-Digitel but further said that they would remain relevant to the current needs of the customers which would matter most in the future.

?Our focus on network quality will be relevant especially with the advent of new phones that do not only function as a call and text phone but the people?s interface for social networking sites such as Facebook and Twitter. We expect the demand for 3G services to increase and Globe is ready for that,? he said.

Cu said the firm's consumer-centric strategies would include flexible postpaid plans that would allow individual subscribers to customize their plans according to their needs and budget, which had proved effective in helping increase its subscriber base for the postpaid division.

?Subscriber growth was clearly on the upswing in 2010. In the last quarter of, our mobile business posted fifth consecutive quarter growth at the heels of compelling service offers,? he said.

Cu said that the mobile business delivered a net income of 1.1 million SIM additions, which he said is the highest since the second quarter of 2008.

Globe ended 2010 with a mobile SIM base of 26.5 million which is an increase of 14 percent compared to 2009.

Cu said Globe had committed $500 million of its 2011 capital expenditure to improve Globe's network quality and strengthen its back-end systems and delivery platforms that would allow them to support more aggressive offers and the best customer experience.

Cu also said that 2010 closed on a high note for the firm with consolidated fourth quarter revenues of P16.7 billion, which is one of the highest in the firm?s history.


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