PLDT reverts to fixed as mobile income falls

By Riza Lozada

Slowing revenues from its mobile services re­sulted in telecommu­nications giant PLDT Inc. posting a core income of P5.3 billion in the first quar­ter, down 26 percent from a year ago.

In its quarterly report filed to the Philippine Stock Exchange Friday, PLDT’s consolidated service revenues reached P35.6 billion for the first three months, which was lower by seven percent year-on-year.

PLDT and Smart Com­munications Chairman and CEO Manuel V. Pangilinan said in a press briefing that the company aims to further strengthen its Home and En­terprise segments amid its continuing growth.

“We are aiming to shift our focus from wireless to fixed for the foreseeable fu­ture,” Pangilinan said.

“The world today is turn­ing deeply digital. And, as our results for the first quarter this year, PLDT and Smart are moving with the times and making their digital pivot at an accelerating pace,” he add­ed.

Wireless consumer rev­enues amounted to P14.7 billion, declining by 18 per­ cent from the previous year’s P17.98 billion.

PLDT’s Home and En­terprise business units set the pace for its revenue growth as it posted double digit revenue increases year on year. Home service revenues reached P7.8 billion, up by 12 percent, while Enterprise service reve­nues increased to P8.5 billion, climbing 13 percent from the first quarter of 2016.

The combined revenues of the Home and Enterprise groups now make up 46 per­cent of PLDT’s consolidated service revenues, higher than the 41 percent contribution of the Wireless Consumer busi­ness of Smart, TNT and Sun.

The combined subscrib­er base of Smart, TNT and Sun rose to 400,000 in the first quarter of 2017 from end 2016.

PLDT has expanded its rollout of broadband lines to provide faster Internet to households and businesses nationwide.

In the first quarter of 2017, PLDT expanded the reach of its fiber optic net­work to cover over 3 million homes passed, up from 2.8 million homes at end-2016, which is on track to its 4.4 million homes target by end- 2017.

It is also pursuing the delivery of fiber to the home (FTTH) services in key urban centers in various parts of the country.

In line with this, PLDT launched its fiber-powered PLDT SmartCity program (previously “Fibr City” pro­gram) first in Toledo City, Cebu in February, then in General Santos City in April and then Naga City in May.

Complementing its stepped up FTTH roll-out, PLDT is also set to start de­ploying in the second quarter of this year hybrid fiber tech­nologies like G.fast that can deliver fiber-like data speeds through the copper wires in homes and buildings under a three-year program.

Meanwhile, Smart has stepped up the expansion of the coverage and capacity of its LTE and 3G networks to better serve the rising demand for mobile data services.

After completing its initial deployment in Metro Davao late last year, Smart brought its LTE and LTE-Advanced roll out to Metro Cebu and Metro Manila and surround­ing provinces. Under its three-year plan submitted to the National Telecommunica­tions Commission, Smart will provide LTE coverage to 95% of the country’s cities and municipalities by 2018 using low- and high-band radio frequencies, including those obtained through the acquisi­tion of the telecoms business­es of San Miguel Corporation.

PLDT Inc. will spend P46 billion this year for its capital expenditures higher from last year’s P42.8 billion to further grow its Home and Enterprise business units.

“We are building for the future by further strengthen­ing the combined reach and capabilities of our wired and wireless networks. And we are doing this in ways that are very mindful of impend­ing advances in technologies such as 5G, so that our cur­rent network investments will deliver benefits not only today but also well into the future,” PLDT Group Chief Informa­tion and Technology Adviser Joachim Horn said.