A NEW core player in the hotly contested, duopolistic telecommunications market in the Philippines will prove to be a challenge to the incumbent carriers, forcing them to step up their game and provide better and more affordable services.
This early, just as the buzz on the possible entry of Telstra Corp. Ltd.—Australia’s largest telecom player—becomes louder, Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom Inc. indicated that they are ready to compete against another mobile-services provider.
Manuel V. Pangilinan, the chairman of the dominant telco in the country, said his group is anticipating the entry of another market player, as San Miguel Corp. confirmed that it is negotiating with Telstra for the possibility of introducing another core market player.
“We just have to deal with it when they come. It’s anticipated that San Miguel will do it whether with Telstra or another partner,” he said in an interview late Tuesday.
Globe President Ernest L. Cu, on the other hand, was more confident that it can continue to aggressively compete with another player, especially after proving that it can lead the local market.
“Globe has been successful in its transformation initiatives over the last five years, which resulted in consistent market-share gains and strong business performance,” he said in an e-mail on Wednesday.
Whether or not Telstra will prove to be a challenge for the largest telco player in the Philippines, Pangilinan said it will depend on how San Miguel will position itself in the market.
“It depends on how they behave to get market share,” the businessman said. “Telstra is the leading telecommunications provider in Australia.”
Cu, meanwhile, said his company will be more than ready to take on the challenge, as it has already prepared its network and infrastructure.
“While the entry of another competitor into the mature Philippine telco market is something we are closely looking at, Globe has had a long history of fighting a larger, well-resourced incumbent. We were a challenger brand for quite some time and now we have emerged a leader,” he said.
Globe outperformed PLDT during the first half of the year, as PLDT posted a 5-percent drop in its net income, while Globe saw its bottom line surging by 27 percent on the back of record-breaking revenues from data and broadband.
Pangilinan noted that his camp may not necessarily review its business strategy. The company, however, will base its future plans on developments in the market.
Telstra and San Miguel in late August announced that they are currently negotiating for the possible joint venture to introduce a new player in the Philippine telecommunications market. Industry observers predict that the Australian company will bring into Manila its Internet expertise through its 4G technologies.
Boon and bane
Experts said the entry of a new core player will prove to be both a boon and a bane to the market as a whole.
International Data Corp. (IDC) Philippines analyst Alon Anthony D. Rejano said a new telecommunications provider will be advantageous to consumers, as it will result in a more competitive market.
“The market will be more competitive. For the consumers, it will be an advantage, because it will give them more options and will lower the price,” he explained.
Both National Telecommunications Commission (NTC) Director Edgardo V. Cabarios and Democracy.PH Founder Pierre Tito Galla echoed Rejano’s observation, saying that it will help improve the market condition in the Philippines.
“There is still room for a third network player. Right now, we only have two core networks. True competition in the core network market is slightly minimal. If you want a free competition in the marketplace, a third core network player is welcome,” Cabarios said in an interview.
He also admitted the need of the government for assistance in developing the telecommunications market.
“We need investments in infrastructure because we are one of the countries in the region with the slowest Internet speeds. We need help from the private sector,” Cabarios explained.
According to studies conducted by Ookla, an Internet metrics provider, the Philippines has the second-slowest average download speed among 22 countries in Asia.
As of May, the country’s average download speed reached 3.64 Mbps, ranking 176th out of 202 nations around the world. It is eight times slower than the global average broadband download speed of 23.3 Mbps.
In a separate report, cloud services provider Akamai Technologies said that, while the Philippines might have improved its connection by a percentage point, its overall ranking in Asia still remains at number 13 out of 15, or the third-worst connection in the region.
Filipinos, according to the first-quarter report of Akamai, enjoyed an average download speed of 2.8 Mbps during the period under review. Trailing behind are India and Indonesia with 2.3 Mpbs and 2.2 Mbps average speed, respectively.
ICT market
Galla added that Telstra’s entry will help develop the information communications technology (ICT) market in the Philippines.
“A new player in the ICT space will lead to more competition that we hope will result in better services, more reasonable costs and greater penetration and access,” he said. “We also hope that this heralds the possibility of faster, more reliable and cheaper Internet and network services to the public.” However, this would prove to be a threat to the incumbent vendors.
“If Telstra will bring in connectivity from Australia, there will be lower traffic in our local network. This is a threat to the vendors,” Rejano added.
Telstra recently acquired undersea-cable company Pacnet Ltd., the operator of a 28,000-mile submarine network in the Asia-Pacific region.
“Knowing Telstra, the largest telco in Australia, and with the capabilities provided by the incumbents, the largest factor that will determine the consumer’s choice is the pricing. So, aside from just providing connectivity, Telstra should also provide content. The battle cry for consumers today is entertainment and connectivity,” Rejano explained.
Mobile services providers Smart, Sun and Globe have taken their battle for market supremacy in the digital space, with all of them entering into different partnerships with multinational companies for content.
68 comments
i was using PLDT dsl and tracert http://www.google.com … one of the hops was to unknown.telstraglobal.net …. why the hell is my PLDT connection hopping there ? i smell something fishy. this probably isnt a battle between those companies. there could be a link
Maybe the answer to this is, PLDT could be using the PacNet conx that the Telstra recently bought?, think so?
Mackoy is maybe right, PacNet is a Tier 1 network provider owned by Telstra.
PLDT is a Tier 2 provider that buy transit from multiple Tier 1 providers such as PacNet/NTT/Singtel/Starhub.
wala ako pakialam sa competisyon nyo gusto ko mabilis na internet connection or else try ko ang telstra baka sagot sa problema ko sa internet.
More Competition => Lower prices and Better services => YOU, HAVING BETTER INTERNET PERFORMANCE!
When Telstra has sailed their network, it’s time to say goodbye to Globe and PLDC.
globe sucks for being too slow, pldt should be pldc as in PLDisConnect. Go Telstra. I hope you are better than the two.
yes we hope so!
dapat may pumunta din na mga products ng US nakakasawa na ang china
What is your PLDC mean? =D
I have no idea why people call it pldC.
palaging delay sa comment pldc hehee peace
kung kailan lang may lalaban sa PLDT at GLOBE dun lang nila aayusin at tataasan ang internet connection na kanilang binebenta hahahaha paalam walang kwentang GLOBE at PLDT kahit taasaan nyo ang inyong internet pulpul parin ang service nyo wala kayong kwenta nag tyatyaga lang talaga ako sa inyo pag lumabas yang telstra na yan…papalitan ko na kayo
sali mo na rin ang SMART,..malapit na araw ng mga BWESIT sa telcos na yan……….
Ang hirap kasi sa PLDT almost 3k a month binabayaran namin tpos pag tatawag kme sa pldt sasabihin nila may inaayos daw wow nagbabayad kme ng mahal tapos mabagal tang ina this d makapag laro ng maayos isa lang comonnect sa wifi lag na putragis na pldt yan
It’s not just pricing that will determine the consumer’s choice to switch to a new Telco company; but also the fracking customer service! We all know that our current CS from PLDT and Globe is very trashy and lacking. I am sure kahit anong market positioning gagawin ng Telstra, a huge chunk of PLDT and Globe’s market share will be taken away from them. I am so sure nanginginig na yang PLDT at Globe at nananalangin na di dumating ang Telstra d2 sa pinas.
On the other hand, knowing how business/politicking works here in PH, I highly doubt Telstra will go into 4G (which is the largest revenue source of PLDT and Globe) but instead focus on other core market.
let Globe rot
cge larga telstra walang ka kompetensya ang pldt ….. kung maganda ang serbisyo ng telstra bakit hindi /////gogoggo…
no…no…you are not ready…not by a long shot
Go go telstra kick pldc and globe away…we need your fast internet speed…
Even though puro tayo reklamo about globe and pldt we still have no choice but to subscribe to them :/ . We shouldnt get our hopes too up though because telstra might be another dissappointment but i highly doubt that it will be 🙂
No choice lang talaga ang mga pinoy. Pero sa ikabuturan ng aming mga puso; yamot kame sa serbisyo ng globe at pldc. Kapal ng muka ng globe na sabihing ready sila makipag compete daw. Ulol. Kapag maganda ang feedback sa telstra, lilipat agad ako dun. Pero pag panget din, bati tayo globe. Hehehe
Tama yan sinabi mo no choice lang talaga tayo at maganda telstra nasubukan ko na un pero d dito 🙂
The real question is will telstra compete with pldt and globe or will join with them. If you know what im saying.
Yes for sure 🙂 they will compete to PLDT and Globe Tel .Co
kung maganda ang kanilang serbisyo sa mamamayan…Teltra can pldt at globe ay di naman nakikinig sa mga problema ng mga mamamayan kung itong Telstrang ito maganda ang offer nila at talagang maibigay nila ang kailangan ng mga costumer baka kaya niyan ipasara na lang yung dalawa wla din naman nangyari sa kanila….mag usap na lang sila…..
May punto ka. Like the banking industry dito sa atin runs like a cartel. Imbis na pababaan sila ng lending interest rates at magpatayan, hindi eh, merong pinag-usapang acceptable na rates ang mga yun. Sana nga iba itong si Telstra/SMC.
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oh that sucks too !!!!!
I heard from a good source working in a telco that San Miguel and Telstra is already building a lot of base stations across the country. So I guess they are pretty much positioning their sites so that they can deliver better signal when they launched it to the Philippine market.
That is awesome if true!
There you go!
nagkakandarapa ang PLDT ngayon sa pag upgrade dito sa barangay namin ..Fiber na 🙂 at ang dating 8mbps ngayon 20mbps na hahahahahaha
permanent ba yang pag upgrade nila
permanent din ba yung fibr 50 mbps P1899?
Yes I think it is permanent.
oh yeah bring it on… i will instantly switch to telstra … you will sure be a BIG BIG GIANT PLAYER! globe smart pldt sun are all proven expensive with unsatisfactory connectivity… they keep introducing service plans along with devices coming from china… these plans and devices were never tested longer and you end up their victims… the last time was when i purchased from smart their so called 42mbps LTE wifi… I could hardly remember I think I spent around 6K that time for the plan and device that is made from china… it sucks!! smart company is real dracula sucking blood instantly by tons with its systematic sucking needle less strategy!!!!! I end up throwing the device after 2mos !!!!!!! yesterday i passed by their store and saw plans on print ads and people are lining up innocently not knowing its dracula !!!!
I think not all China made products crap.
Huawei is an example of a chinese multinational manufacturer that brings networking and telecom equipments. It is trusted worldwide.
And most of the LTE equipment that are sold by ISP’s in the Philippines are made by Huawei.
it may be not a crap, but it is about security concern.
Hahahahahahha LT. Kung kelan may pumasok na foreign investor na mag-offer ng mabilis na internet speed sa kayo nag silabasan ng magagandang offer. Hahaha kaya niyo naman pala mag labas ng mabibilis na offer pero hindi niyo ginawa kase mas inuuna niyo yung negosyo kesa sa serbisyo. Hahahaha so kelangan pa palang may pumasok na ganito para ilabas yang mga magagandang offer niyo ne? Daz lyf haha
IF they were only true then there is no need for Telstra. But because of greed Telstra’s coming in and gonna take a big bite if not the whole pie itself. Shame on PLDT and GLOBE for being greedy pigs.
Globe & Smart – We are ready!
Translation: Matagal na kami ready. Hindi nga lang namin ni roroll out masyado para makasingil ng mahal. Nagusap na kami pareho na walang masyadong lamangan kaso may papasok na iba.
Sana nga “ready” sila, at mawawalan sila ng maraming empleyado. Telstra will need staff with existing telco experience, so both PLDT and Globe will have to invest more on human resources otherwise good people will simply leave those companies. Naisip na kaya nila ito?
Haay salamat. Napaka kupal ng mga kumpanya dito sa pilipinas eh ang mamahal pero ang babagal ng mga connection. D sapat ang binabayad natin para sa service na binibigay satin. Kumita lang sila, lahat ng pandaraya gagawin eh
GG na keo Globe at PLDC
mag sara nalang keo….
maglipat na kung may maganda at bago pa. Kasi ang luma naluluma na rin kailangan nang sumakay sa bandwagon na mabilis…..ibaon na ang luma sa dapat na kalalagyan nila sa jurassic area,,,,,,sa ibang bansa parang common na ang 100 sa Pinas di pa abot 20? Bumili pa ng makabago na ang takbo man lang e makaluma naman……
THis article… is lame. It hasn’t been confirmed. It only states “Possible” sigh.
Uh, I think the possibility is more a reality now because of what PLDT and globe are doing to compete right now. We received a call earlier from PLDT that they will increase our net speed for up to 800% (yes, eight hundred whopping percent) for unknown reasons. If that isn’t enough proof for you, then never mind me. Carry on.
PLDT Home DSL sucks big time. I have to make calls almost everyday for dropped internet connection, no dial tone, bz dial tone, etc. If TELSTRA is a viable option I will immediately subscribe to it and drop PLDT. Will never pay a cent to PLDT for early termination. Mas masahol pa sila sa mga baboy.
Watch out for the underhanded maneuvers of PLDT and GLOBE against Telstra and SMC. Better know who are the gov’t officials who will be pro and con for this clash. I will not surprised if a case will be filed and then elevated to Supreme Cash.
PLDT Globe service really bad. iNternet is painfully slow. No new investments in the form of upgrade of facilities?
Only excuses saying pinoys love to text thereby congesting the system.
Even with call and text services, where else in the world does your prepaid load expire in 2 months? This is like saying “congest the system so you don’t waste what you already paid for because your load is expiring”
Segurista. The lot of them.
I notice that everybody here is looking for redemption (including me) on how the internet industry here in the philippines is providing its customers. I hope TELSTRA will deliver a more better if not reliable internet connection than the said companies. I got a phone call from PLDT earlier saying that they will increase my internet connection speed for up to 800% (yes, a whopping eight hundred percent). But still, knowing how PLDT operates for more than 10 years now, I think I’m ready for a change of heart.
Welcome TELSTRA !!!!! Nothing can be worse than PLDT/Globe. It is time to have reliable ISP in the jungle. Monkeys can’t handle it, that is already proved, every level of ISP service.
I will buy it right away when there is a chance. Globe/PLDT will be losers big time you’ll see.
And I’m am so happy about it. No more stealing customers money, giving back connection that sucks or nothing.
Bye bye PLDT/Globe! You´ll find out how to take care of business/ or how it should have been taken care. Climb back to coconut tree… Bankrupt is waiting behind corner
had they competed against themselves, that could have brought the best of them. sadly it took a new player for them to forced upgrade their services. just read at the comments, who amongst us are happy with their slow connection?
is their and official announcement of telstra about this?
Here
……
Ano daw? ready daw sila? I bet they are now ready to offer a fair and better deal so their customers will not leave them. 😉
right.
hahahahahaha pldt customers are all going to jump ship due to their really bad service, if Telstra can give a half decent service, I am jumping ship, I am a British citizen living in the Philippines, and I am sick and tired of PLDT and their very bad service, I get 75 Mbps in the UK for the same price I am paying for a shitty 8.5 Mbps from PLDT, about time we have some competition, PLDT are in the shit as long as there is no coruption as norm in the Philippines.
Globe, Smart, PLDT or whatever, all they care about is money…they are like money vampires sucking all of the money out of our pockets…They are the worst, I wish Telstra arrives early, I am going to end my subscription with Globe and subscribe to Telstra.
go telstra go!!!
May panlaban na ang globe sa telsra ung fair usage policy daw pra ung mga suscribers mka enjoy ng fast browsing. Fast browsing nga peo pglumagpas sa data limit gagapang na ang browsing. Pointless ang malaking bandwidth kung may limit. Kaya in short kung malaki ang bandwidth mu sa globe madali mu ma consume ang alocated data limit sa broadband plan mu. Pagkabasa ku sa balita ahh ang dali nka pick up sa telephone at ngpa downgrade from 15mb to 5mb. Kawawa ung mga suscribers lalo na ung students na may research pra mka graduate.
The more expensive equipment is not worth that much with poor cabling. The weakest link.
In Oz Telstra owns the cabling putting them in a monopolist position and the manage to keep this for long. (Other internet providers have to “rent” Telstra-cable-usage.. go calculating).
Look up the internet speed in Oz compared to other countries, I believe South Korea is still nr. 1. Oz somewhere close to 30th. This is average around 7mb’s (Oz). The gross of the people live in the big cities; Melbourne, Sydney, Brisbane etc. Focus on faster internet in those areas just to rise global average position. And of course Telstra is happy to show-off their ‘fake feathers’. Other areas in Oz are much, much slower.. You’ll be happy with 3mb/s. This is the same speed you sometimes find in Cebu City now.
In short, Telstra with their already established monopolist power from Oz thus the money, will compete hard to destroy competition firstly and on the long run obtain a new monopolist position… and raise price for the consumers soon as this is established. How many people live in Ph? Around 100.000.000. Yes, it’s good to invest in obtaining a monopolist position. Who owns cabling in The Philippines? Are cables used to connect to Mobile Network towers? Telstra will just buy their way in. (Who will pay for that eventually?) I think that’s quite easy in Ph buying your way in. Telstra knows the drill from experience, actually it was handed to them on a silver platter by the Oz government… It’s easy as cake.
Pricing; Who will pay $40.00 (P12,000.00) for 1 gig data-traffic in Ph? You will eventually if there are no much more other options.
40 x 48 = 1920 not 12000
This could be the beginning of a new era since the advent of true utilization of digital internet bandwidth replacing the analog dial-up connections. Tumanda na ako sa kagagamit ng mabagal na, mahal pa na internet connection. Haiz!
putang ina nyong Globe at Smart kayo!!! Bring it on nyo mukha nyo! tang ina kayo sobrang takot nyo nga nagtulong pa kayong dalawa na bilin ang SMB internet infrastructure para lang di makapasok ang telstra at wala nang kakalaban sa inyo! tang ina nyo! lokohin nyo lelang nyong panot demonyo!!
Your Congressmen has NOT done a bit to stop the monopoly or duopolistic telecommunications market in the Philippines. Most of the Congressmen are “sitting ducks” paid nicely by the Filipino people. Smart/Globe have made the telecom market their milking cow. Due to the ‘NEGLECT’ of your self – serving law-makers & political leaders. Be more demanding – Filipinos. Don’t stay put on the side lines. MAKIBAKA AT MAKIALAM. Be pro- active on a corrupt culture. DEMAND what is due to you. This is the lacking ‘piece; in this kind culture.
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