Philippine Long Distance Telephone Company - Research Paper
The Philippine Long Distance Telephone Company (PLDT) was started in the Philippines on November 28, 1928. The Philippines Legislature granted PLDT the franchise to establish and be able to operate telephone services, following the merger of 4 telephone companies under a common US ownership. It was in 1967 when General Telephone and Electronic Corporation sold PLDT to a group of Filipino businessmen. The Philippine government’s intention to integrate the Philippine telecommunications industry made way for PLDT to purchase the Republic Telephone Company in 1981. Now, PLDT is the leader in providing telecommunication services in the country. The company’s business can be divided into three main business areas: fixed line, wireless, and information and communication technology. The fixed line business provides local calls, national and international long distance services, which operates around 2.1 million access lines. The wireless segment provides cellular, satellite, and VSAT services. PLDT provides cellular services through SMART, while Piltel is a reseller of Start’s digital GSM capacity under its own branding and pricing strategy for both voice and text messaging services. The information and communication technology provides solutions for internet applications and multimedia content delivery, with use of internet protocol-based solutions. The internet access are provided by Infocom ' a subsidiary of ePLDT. And other investees of ePLDT provide e-commerce, call centers, and other IT-related services. Common shares of PLDT are listed and traded on the Philippine Stock Exchange (PSE). These are also listed and traded on the American Stock Exchange and Pacific Exchange in the US, prior to October 19, 1994. During October 19, 1994, American Depositary Receipts (ADRs), were issued with each American Depositary Share (ADS) that represented one PLDT common share. The ADSs are listed and traded on the New York Stock Exchange and the Pacific Exchange in the US. II. Statement of the Problem
What actions can PLDT take to sustain their position and maintain their current market? III. Objectives
• To study how the company reached their success
• To identify strategies how the company can maintain the top position • To suggest ways on how the company can improve existing services to the customers IV. Areas for Consideration
Owns top position ' PLDT owns the top position in the Philippines for the telecoms industry. They initially provided fixed line to the Philippine market during the early times, and have now extended their market for wireless technology. By acquiring SMART as their wireless partner, they became the number 1 provider for wireless phones. As technology continued to boom, then came the internet, which started as dial-up connection and eventually produced the broadband connection, widely known as the DSL. Then came pelt, which stood as the technology arm of PLDT. ePLDT gave the answer to internet problems and also took the top position. Majority of Philippine market share ' Having a wide range of products, from fixed line, wireless line, and internet connection, PLDT was able to capture majority of the Philippines market. PLDT holds the Philippine market for fixed line. By taking a gamble of getting SMART during the time when the GSM (Global Service for Mobile Communications) service and cellular market growth was still uncertain, they now earned the market for wireless lines, used of mobile phones, which accounts for 52% of PLDT Group’s revenues. As technology was taking over the public’s attention, PLDT also caught the market in broadband and narrowband internet. They launched the product Vibe for dial-up connections, and DSL for broadband connections. Industry specialists ' With the long history and very vast knowledge in the industry, PLDT has invested on their people. As technology becomes more sophisticated, the company...
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