AS Filipinos shift from the “new normal” to the “now normal,” telecommunications services have become more and more indispensable to consumers, with digital services helping them navigate their daily lives—from work and school to gaining access to basic necessities and even luxuries.
With the easing of mobility restrictions and the reopening of the economy, Filipino workers and learners are now embracing hybrid setups—with days spread for on-site and online work and school.
This presents a larger opportunity for telco players, as after roughly two years of focusing on at-home Internet services, demand for wireless connectivity is rapidly revitalizing.
Connectivity remains necessary currency
The ongoing pandemic, albeit more manageable, shook the Philippines like a perfect storm—empty roads, closed stores, and almost desolate streets became the norm.
And cliché as it may sound, the Filipino character of resilience also came into play. Pinoys adapted to the new normal by embracing digital solutions that brought them closer to things that matter: work, school and necessities.
However, connectivity was a key factor to making this new digital way of life work. The Internet became the lifeblood for many.
Today, even with the now-normal of hybrid life setups, Internet connectivity remains a necessary currency to function well. It is even called the new “oxygen.”
It has become so essential that all major players in the telecommunications industry—PLDT Inc., Smart Communications Inc., Globe Telecom Inc., Dito Telecommunity Corp. and Converge ICT Solutions Inc.—have been competing to provide the best service in the market.
PLDT and Smart President Alfredo S. Panlilio even described the industry as entering into “hyper competition” mode.
Faster evolution, growth
FOR Globe Vice President Yolanda C. Crisanto, the pandemic accelerated Globe’s transformation from a pure telco player into a digital services provider.
“With the changing and expanding needs of customers and advancement of ICT, the industry today has evolved to deliver more than telecommunications services. In the Philippines, Globe has been leading this shift to going beyond telco as we strive to drive the country’s digital transformation in response to the various pain points Filipinos confront day to day, maximizing digital technology to uplift their lives,” she said.
Crisanto added that Globe’s suite of digital services had “served as a lifeline to millions of Filipinos locked down in their homes.”
She cited, for example, Globe’s e-wallet GCash and telehealth vertical KonsultaMD, both of which, she said, became “indispensable tools” for personal finances and helped in supporting the country’s healthcare systems.
“With the digital shift accelerated by the pandemic and its aftermath, Globe sees the country’s digital transformation only expanding, as more Filipinos are adopting a more digital life. There will be further growth in the “phygital” realm—the combined digital and physical planes fast becoming the norm in this post-pandemic era,” Crisanto said.
For his part, Panlilio said PLDT’s fixed-line business led historic group-wide growth throughout the pandemic, while people were confined to their homes.
“We expect our revenue momentum to accelerate as we pay particular attention to customer satisfaction. We are doing this through quicker response times and proactive communication, and by driving installations in high-potential provincial areas,” he said.
Its wireless unit Smart is also seen to benefit from the easing of pandemic restrictions, with people now more mobile. Panlilio said the group plans to add more value to loyalty, encouraging retention and driving utilization.
The Pangilinan-led group’s enterprise business is also shifting with new technologies available.
According to Dito Chief Administrative Officer Adel A. Tamano, Dito’s foray during the height of the pandemic has helped drive stronger competition and forced other players to provide better services.
“Definitely in terms of download speeds and network coverage, Dito’s entry into the market has improved these metrics significantly. The consumers feel and see that competition has been good for the telco sector,” he said.
Converge CEO Dennis Anthony H. Uy, for his part, said the sudden uptick in demand for home broadband during the early and middle parts of the pandemic required the group to quickly expand its presence.
“We are also seeing robust uptake in our newly operating areas, particularly in North Luzon, Visayas and Mindanao. This supports our position that there are still a lot of underserved and unserved areas in the country,” he said.
Connectivity drives recovery
AND with Internet connectivity serving as the bedrock of the digital economy, the Philippines ought to give a premium to ensuring that every Filipino is connected.
“We are aligned with the government to achieve the goal of meaningful universal connectivity, and to bridge the digital divide in the country—the goal of more inclusive economic recovery through digitalization,” Uy said.
He added that performance-based incentives, especially for projects that are missionary in nature, will help provide players more compelling reasons to further expand their networks.
For her part, Crisanto said Globe’s suite of digital services continues to help drive the economy on its road to recovery and support institutions, businesses and individuals on their day-to-day needs.
“The continuing expansion of the Globe Group also means the generation of more jobs, as portfolio companies grow and new ones are hatched. Its relentless innovations, which lead to new digital solutions, also redound to a healthier digital economy as they lead to inclusion,” she said.
She added that through Globe’s platforms, the unbanked get access to financial services, remote areas receive medical services, and more Filipinos get access to training and growth opportunities.
Panlilio noted that the PLDT Group has been actively collaborating with the government to connect more Filipinos nationwide, particularly through the recently formed Private Sector Advisory Council (PSAC)-Digital Infrastructure Group.
“As a PSAC member, PLDT’s recommendations include the streamlining of permitting guidelines for telecommunications infrastructure. We believe that this will greatly help PLDT and Smart in our continued nationwide network buildout to support the connectivity needs of Filipinos,” he said.
Globe is also a party to the PSAC.
“Through collaboration with government and stakeholders, its advocacies have gained ground, including the call to amend the Intellectual Property Code to better protect creators of original content and advance the country’s creative industry. This was echoed by the President’s call for an e-commerce law that aims to protect consumer rights, data privacy and intellectual property,” Crisanto said.
Tamano noted that Dito will continue to honor its commitments to the government, citing the first few years of his group’s operations as proof that the company is firm on delivering on its promises to the Filipino people.
“Dito has brought in P200 billion so far in terms of building our network and our operations. We have created 1,000 direct jobs and thousands of jobs in our sales channels. This is our way of supporting the current administration and our continued push to building the nation through investments in the latest technology and in people,” he said.
Image credits: Nonie Reyes