THE DIGITAL shift took center stage in the telecommunications sector in 2015, highlighting both the vast opportunities and challenges facing incumbent players Philippine Long Distance Telephone Co. and Globe Telecom.
The clamor for more Internet services, described as the biggest industry trend here since text messaging became popular in the late 1990s, also called for record spending by telecom companies in a bid to keep up, and deliver better services to data-hungry consumers.
The narrative driving this shift has not changed, and in 2015, it has only ramped up.
Feature-rich smartphones are becoming more inexpensive and more accessible to broader market segments. So-called over the top players like social media website Facebook and instant messaging services like Viber and Whatsapp are cutting into traditional call and text revenues of telecommunications companies.
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This digital shift spelled very different results for the country’s two telecommunications companies. PLDT, the dominant player, saw earnings dip, while Globe Telecom, which spotted and focused on this emerging trend early on, saw profit and revenue jump higher in the first nine months of 2015.
The fact that the Philippines is served by two players is also luring new rivals seeking to cash in a rising segment of young, digital savvy consumers that are seen to drive future growth.
