A Research Presented to the
Department of Business Management
College of Arts and Science
San Beda College, Mendiola
In partial fulfillment of the Requirements
In IBE 13: International Marketing Communication
Mary Grace E. Chavez
October 7, 2010
The Philippine Long Distance Telephone Company is the leading supplier of domestic and international fixed and mobile telecommunications services in the Philippines. Listed on the Philippine Stock Exchange and with ADRs listed on the New York Stock Exchange (NYSE: PHI) and the Pacific Exchange, Manila-based PLDT is actively pursuing a convergence strategy through its three principal business groups - fixed line, wireless and ePLDT.
Founded on November 28, 1928, Philippine Long Distance Telephone Company (PLDT) is the leading telecommunications provider in the Philippines. Through its three principal business groups - fixed line, wireless, and information and communication technology - PLDT offers the largest and most diversified range of telecommunications services across the Philippines’ most extensive fiber optic backbone and fixed line, cellular and satellite networks.
PLDT has a network of 174 central office exchanges serving the Metro Manila area and 188 other cities and municipalities throughout the country. As of December 31, 1997, the number of access lines in service throughout the PLDT system was 1,662,631, representing approximately 80% of all access lines in the country.
International long distance services are provided by PLDT using two international gateway switching exchanges, submarine cables and satellite systems that connect PLDT’s network worldwide. PLDT also operates the Philippines' only nationwide digital microwave backbone, which connects its own exchanges with 466 other local exchanges and 3 exchanges operated by the Philippine government. PLDT's national long distance network links 1,106 calling points in 806 municipalities throughout the country.
B. MARKET SHARE
PLDT continues to be the leader in the Philippines wireless market. It is expected that PLDT's subscriber base will be expanding over the next five years, and it will reach 44.9 million in 2013. However, it is forecasted that PLDT's subscriber market share in the Philippines will decline from 53.6% in 2008 to 50.1% in 2013. In terms of ARPUs, the PLDT's monthly ARPU will fall from PHP 207 in 2008 to PHP 191 in 2013.
IEMR's Philippines Mobile Operator Forecast covers 50 financial and operational metrics on wireless operators in Philippines and PLDT is one of this it includes: Total mobile subscribers in the Philippines will increase from 65.7 million in 2008 to 89.8 million in 2013. The largest mobile operator in the country will continue to be PLDT. It is expected that its subscriber base will increase from 35.2 million in 2008 to 44.9 million in 2013.
C. SWOT ANALYSIS
|STRENGTH |WEAKNESS | | | | |OPPORTUNITY | | | | |
When PLDT was incorporated and given the franchise to establish and operate telephone services in the country on November 28, 1928, a typhoon had just ravaged Eastern Visayas, Bicol Peninsula, and Samar. The ability to communicate amongst loved ones and across the country became crucial. Sadly, phone networks then were like disconnected intercom systems and you could only call people within your own small city. Filipinos were disconnected from neighboring towns, disconnected from friends in the other island and, needless to say, disconnected from...