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Objective

By PrealRomero1 Feb 05, 2015 1330 Words
Objective
Our main objective is to know and evaluate the Digitel’s technical operations and strategies and how they became successful despite of its existing competitors.

Central Problem
Before the acquisition of the Digitel network, a lot of their mobile network subscribers are complaining about the signal that they supplied to their customer especially in Metro Manila area.

Sun uses the 1800Mhz band which uses less power but also provides less coverage as opposed to the 900 Globe and Smart user. The signal was also handset dependent that’s why Samsung phone from sun gets lower signal strength as opposed to the iPhone with as much as 2-3 bars difference. It might be because Samsung is using weak batteries and has to lower the receive rate of the Phone so that it can last an acceptable amount of time.

Sun Cellular have low rate because they are using half-wave signal instead of full-wave, that resulting in weak and slow signal.

SWOT ANALYSIS
Strengths
The launching of Sun Cellular becomes viral because of its unlimited calls and text services. Sun Cellular received multiple awards from 2004 up to 2011.
Digitel has a good marketing strategy that’s why Sun Cellular won different awards. Since PLDT acquired Digitel, they can now benefit the PLDT’s widespread connection especially to Manila Areas. Weaknesses

Only provincial users can enjoy Sun Cellular’s services because of its weak connection to City/Manila Areas. Since PLDT acquired Digitel, Sun Cellular loses many subscribers because the services they offered are getting higher than the usual price. Opportunities

Because of the PLDT’s widespread connection, Sun Cellular network can spread its services throughout the country. Sun Cellular will gain more subscribers if they offered more faster connections because of their partnership in PLDT. Threats

Because of Sun Cellular’s innovation, they gained over 16 million subscribers, and were already an inch away to Globe Telecom’s 26.5 million subscribers. Sun Cellular has successfully position itself to compete not only with its existing competitors, but with well-funded new entrants as well.

EVALUATION ON BUSINESS PERFORMANCE OF SUN CELLULAR UNDER DIGITAL TELECOMMUNICATIONS PHILS.,INC.

CASE STUDY FOR FINAL EXAMINATION ON EVALUATION OF BUSINESS PERFORMANCE SUBJECT

ABE INTERNATIONAL BUSINESS COLLEGE

BACHELOR OF SCIENCE IN INFORMATION SYSTEM
3RD YEAR STUDENTS

NOVEMBER 3, 2014

BY:
PAUL RYENIEL A. ABINUMAN
SHAINE DELOS G. SANTOS
APRIL B. ROMERO
NOKIE VELEZ

COMPANY HISTORY

Digital Telecommunications Phils., Inc. was established in October 1987 and commenced commercial operations in January 1992. In 1993, the Department of Transportation and Communications (DOTC) granted a 30-year exclusive contract on Digitel for them to manage, operate, develop and rehabilitate certain telecommunications systems owned by the DOTC ( so called, “DOTC System”) which are located in most provincial areas of Luzon under a Facilities Management Agreement (FMA). The FMA also provided for its conversion into a lease contract under certain terms and conditions agreed upon by both parties. In accordance with the provisions of the FMA, Digitel and DOTC agreed to amend and convert the FMA into a Financial Lease Agreement (FLA). Under the FLA, Digitel was granted the exclusive right to lease, manage, maintain, operate, develop and eventually own the said DOTC facilities.

In February 1994, Digitel was granted a national franchise to provide domestic and international telecommunications services throughout the Philippines. In September 1994, Digitel was granted by the National Telecommunications Commission (NTC) a provisional authority to operate an international gateway facility (IGF). A provisional authority was also secured from the NTC in January 1995 to install, operate, maintain and develop telecommunications facilities in Regions 1 to 5 including the facilities currently leased from DOTC.

On August 7, 2000, Digitel was granted by the NTC a Provisional Authority (PA), authorizing it to construct, install, operate and maintain a Nationwide Cellular Mobile Telephone System (CMTS) using Global System for Mobile (GSM) and/or Code Division Multiple Access (CDMA) technology. Consequently, Digitel has been building a high-powered performance GSM/1800 network with a suite of applications and services.

On December 11, 2002, the President of the Philippines, Gloria Macapagal-Arroyo signed into law, Republic Act No. 9180 granting Digitel Mobile Philippines Inc. (DMPI), a wholly owned subsidiary of Digitel, a franchise to construct, install, establish, operate and maintain wire and/or wireless telecommunications system throughout the Philippines.

In March 2003, DMPI commercially launched its wireless mobile services under the Sun Cellular brand. It pioneered the 24/7 Call & Text Unlimited in October 2004. Because of its exemplary service, Sun Cellular received the following awards: Most Promising Telecom Service Provider in Asia Pacific award in the 2009 Frost & Sullivan ICT Award in Singapore. The Agora Marketing Company of the Year in 2009 Award for its excellence in pioneering intra-network unlimited services and revolutionizing the country's telecommunications industry practices. The 2004 Philippine Marketing Excellence Award

The 2005 Silver Prize for Most Effective New Service Introduction and Top 25 Philippine Companies recognized by Business Mirror and Stern Steward & Co. In 2011, Sun Cellular won the Philippines Mobile Service Provider of the Year from the Frost & Sullivan Asia Pacific Best Practices Awards in Singapore. In October 2011, PLDT acquired DIGITEL from JG Summit Holdings, vowing to continue providing Digitel’s customers best value in terms of price, quality and range of products and services. After the acquisition and assessment of the Digitel network, its subscribers were transferred into the PLDT network and all of its services were shut down. This was become effective from November 15 - December 31, 2012, when the last Digitel Business Centers were closed. However, Digitel retains operation on the services of its subsidiary Sun Cellular although PLDT also owns competitor Smart Communications, the two networks remain separate entities with completely independent mobile network infrastructure and corporate management structures.

BACKGROUND STUDY

In March 2003, Digitel Mobile Philippines Inc. (DMPI), commercially launched its wireless mobile services under the Sun Cellular brand whose pioneered the 24/7 Call & Text Unlimited in October 2004. Because of that, Sun Cellular received multiple awards from 2004 up to 2011. With Sun Cellular reaching 2.3 million active subscribers in 2006, the company held the number two spot in overall postpaid subscriptions. In 2008, Sun Cellular expanded its cell site count to 4000 to accommodate its 8.2 million subscribers. Sun Cellular hit the 10 million subscriber mark in 2009, and was the leader in postpaid acquisition with 7 out of 10 postpaid subscribers choosing Sun Cellular. The extensive variety of service innovations for mobile telephony garnered Sun Cellular the Most Promising Telecom Service Provider in Asia Pacific Award in the Frost & Sullivan ICT Awards in Singapore, as well as the Agora Marketing Company of the Year Award. Sun Cellular took over leadership of the postpaid market in 2010 as its subscriber base hit the one million mark and covered 42% of the total postpaid market share. In 2011, Sun Cellular was awarded the Philippines Mobile Service Provider of the Year Award at the prestigious 2011 Frost & Sullivan Asia Pacific Best Practices Awards in Singapore. When Philippine Long Distance Telephone Co. (PLDT) confirmed the buzz among market and industry players that it is buying a majority stake in the Gokongwei-owned competition, Digitel Telecommunications Philippines Inc.(DTPI) — operator of Sun Cellular, Lance Y. Gokongwei, president and COO of JG Summit Holdings, said it was a "very difficult decision" to sell Digitel. He refused to elaborate, saying it took three years before his company was able to decide on a suitable partner. Also PLDT Chairman Manny V. Pangilinan assure all Sun Cellular subscribers will still continue benefitting the unlimited products and services of the group. PLDT also says Sun Cellular will remain a separate entity and retain the brand. Smart already surpassed 45 million subscribers in 2010, while Sun Cellular which has over 16 million subscribers, was already inching closer to Globe Telecom (26.5 million). Following PLDT’s acquisition of the company in October 2011, Sun Cellular has successfully positioned itself to compete not only with formidable existing competitors, but with well-funded new entrants as well.

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