By Ashley Erika O. Jose, Reporter
PLDT INC. said the anticipated arrival of satellite telecommunications providers this 12 months is unlikely to significantly alter market dynamics within the near term, citing coverage limitations and high operating costs tied to direct-to-cell services.
The corporate said direct-to-cell technology stays in its early stages and continues to face service and affordability constraints despite growing regulatory support for brand new industry participants.
“We are usually not fearful of the direct-to-cell at this particular time limit. Because for those who tested it, or for those who tried it, it is de facto a foul customer experience. At this time limit, we are usually not used to that sort of service,” PLDT Chief Operating Officer and Head of Network Menardo G. Jimenez, Jr. said during an organization briefing last week.
The comments got here after Information and Communications Technology Secretary Henry Rhoel R. Aguda said last week that two US-based satellite service providers are expected to start operations within the Philippines this 12 months.
The Department of Information and Communications Technology (DICT) said the applications of the 2 firms are already in advanced stages on the National Telecommunications Commission (NTC). One operator may secure regulatory approval inside the month after completing testing activities, while one other is anticipated to launch services inside the 12 months.
Direct-to-cell technology allows mobile devices to attach on to low-Earth orbit (LEO) satellites without counting on traditional cellular towers. The technology is seen as a possible solution for geographically isolated and underserved areas that lack conventional telecommunications infrastructure.
PLDT executives, nevertheless, said the services remain costly compared with traditional mobile offerings.
“For the telecommunications company, satellite providers at present are inclined to charge at a really high cost,” PLDT Senior Vice-President and Enterprise Business Head Patricio S. Pineda III said.
“I don’t think any of that takes us away from what we now have been attempting to do over the past three to 4 a long time of really attempting to drive very inexpensive packages for our consumers,” he added.
Mr. Pineda said the corporate continues to expand network coverage, including in geographically isolated and disadvantaged areas (GIDAs).
Mr. Jimenez said PLDT’s wireless unit Smart Communications, Inc., along with Globe Telecom, Inc., already covers about 96% of the Philippine population.
“Meaning we don’t cover 4% of the Philippines, where are you going to make use of satellites for? I mean, you’ll need it for backup. But for those who’re gonna pay the exorbitant amount they charge for backup. So, it’s fancy, and it’s exciting, by all means come to the Philippines,” he said.
Despite its reservations about current business viability, PLDT can also be exploring satellite-based services through its partnership with Lynk Global, Inc. The collaboration involves testing direct-to-device satellite connectivity that will allow extraordinary mobile phones to send and receive communications in areas without cellular coverage.
Mr. Jimenez said the technology is anticipated to enhance over time, adding that PLDT is ready to scale up related services once the market matures further.
The planned entry of additional satellite operators follows the enactment of the Konektadong Pinoy Act, or the Open Access in Data Transmission Act, which liberalized participation in the info transmission sector by removing the congressional franchise requirement for qualified industry participants.
The law goals to streamline permitting and licensing procedures and promote infrastructure sharing to enhance competition and connectivity services. Under the measure, data transmission industry participants may construct, establish, maintain, lease, or operate data transmission networks and facilities without securing a legislative franchise.
Individually, PLDT said it’s considering listing its data center business as an actual estate investment trust (REIT), although the corporate has yet to set a timeline for the plan.
PLDT Senior Vice-President and Chief Financial Officer Danny Y. Yu said the corporate is evaluating several fundraising options, including the monetization of non-fiber assets and the sale of idle properties once market conditions improve.
On May 14, PLDT’s board approved the retirement of Mr. Yu effective May 31. The board also approved the appointment of Leo I. Posadas as officer-in-charge of the finance, risk, and sustainability group while concurrently serving as senior vice-president and treasurer effective June 1.
For the primary quarter, PLDT reported a 1.77% decline in attributable net income to P8.87 billion from a 12 months earlier as higher expenses offset modest revenue growth.
Hastings Holdings, Inc., a unit of the PLDT Helpful Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group.