The president and CEO of Philippine Long Distance Telephone Co. (PLDT) will bid good-bye to his post by year-end, the same time when he says hello to his new position as the company’s newest strategic advisor.
Napoleon L. Nazareno will retire as the company’s chief executive on December 31, a year after his supposed retirement in 2014. He will be replaced by PLDT Chairman Manuel V. Pangilinan, who said Nazareno will remain in the board of directors of the company until a replacement has been appointed.
He will also remain as nonexecutive director of Hong Kong-listed conglomerate First Pacific Company Ltd., the parent company of the telecommunications titan, and a member of the board of directors of Rocket Internet.
“We are indeed grateful for Polly’s many years of service as president and CEO of PLDT. Under his leadership, PLDT and Smart achieved unprecedented success in becoming the country’s leading telecommunications companies,” Pangilinan said.
Nazareno led the transformation of the landline business from an overwhelmingly voice-driven service to a broadband data-powered business.
“This formidable task required not only converting PLDT’s legacy landline system into an all-Internet protocol next generation network but, more importantly, reinvigorating the structure and culture of PLDT into a much more market-driven, customer-centric organization,” he explained.
On the wireless side, Nazareno led Smart Communications Inc.’s successful climb from third player to market leader, as far back as 2006, a position that the company maintains to this day.
He was also instrumental in restructuring Pilipino Telephone Corp.’s (Piltel) debts in 2001, the largest debt restructuring in the country that was done on a consensual basis.
He oversaw the integration of both Piltel and Digitel Mobile Philippines Inc. with Smart, ensuring that the expanded organization sustained its position as the foremost wireless service provider. “We are fortunate to have continued access to his wealth of experience and expertise as he assumes this strategic role at a crucial point in PLDT’s evolution,” Pangilinan said.
He said there is no hurry for the company to find a replacement, but said qualifications of the next president and chief executive would circle around his or her exposure and experience in the digital space.
“We don’t have any specific time frame in terms of searching for the president and CEO. I think a lot of attention has been devoted to a lot of issues, like getting started and learning how we move forward,” Pangilinan said. “I think we are not in a hurry.”
The replacement, he added, will most likely come from the company’s current executives.
“Clearly, he’s got to be exposed and experienced to things that are digital. The preference is to promote someone from the inside,” he said.
Smart Padala to boost remittances to P130 billion
AS this developed, Smart eMoney Inc. launched a new product that will drive the remittances that go through the company’s network by almost 30 percent next year.
“Total volume that we generate for Smart Padala is close to P100 billion—we expect this for 2015. We expect this to grow by about 30 percent next year. This particular service will help us grow our customers,” Lawrence Ferrer, vice president at Smart eMoney, said.
With Smart Padala PickUp Anywhere, consumers can now send remittances via Smart Padala to any mobile phone number. The sender just needs to fill out the transaction slip, including the recipient’s mobile phone number, along with a nominal service fee and proof of identification, to the Smart Padala agent.
After the money is sent, the recipient will receive a text notification with the reference number of the Smart Padala PickUp Anywhere transaction. He can then present the reference number, along with a valid ID, to any closest Smart Padala agent. As an added security feature, the recipient will then be sent a onetime verification pin that will allow him to receive the money, a new innovation in the mobile money space.
Previously, recipients pick up their remittances from preselected Smart Padala centers. But now with Smart Padala PickUp Anywhere, they can send or claim their remittance from any Smart Padala center in the Philippines.
As Smart Padala already has over 15,000 agents and centers, which is more touch points than automated teller machines (ATMs), bank branches and pawnshops in the country combined, this will provide Filipinos with an unprecedented level of convenience.
“When you’re sending money to someone who needs it, you want to ensure that they can receive it immediately and conveniently. By enhancing our Smart Padala service with PickUp Anywhere, we are enabling millions of more Filipinos to experience the benefits of financial technology when they need it the most, wherever they may be,” Ferrer said.
Based on data from the first National Baseline Survey on Financial Inclusion released by the Bangko Sentral ng Pilipinas this year, it takes Filipinos an average of 22 minutes to reach the nearest financial services provider.
In terms of cost, the average roundtrip fare to reach a financial access point is P43. Ferrer believes this hyperlocality that Smart Padala PickUp Anywhere provides will ultimately benefit the Filipino consumer.
According to the survey from the BSP, 44 percent of Filipino adults had remittance transactions in the past six months, and for those on the sending side, 91 percent sent to their families, while 6 percent sent to their friends.
On the other hand, for those who received remittances, 90 percent received from their families, while 7 percent received from friends. Top-line items for purposes of remittances received is for food (71 percent), education (39 percent), medical expenses (28 percent) and emergencies (22 percent).