GLOBE Answers Back: We're Still Number 1 in Postpaid

> MANILA, Philippines - It's not about the number of subscribers, but how much money you earn from them.

This is what the country's second-largest telecommunications firm, Globe Telecom Inc, said in claiming it is still the "undisputed leader" in the cellular pospaid segment. Previously, rival and top-ranked Philippine Long Distance Telephone Co (PLDT) group, which includes Sun Cellular operator Digital Telecommunications Philippines (Digitel), said it is now number 1 in postpaid based on number of subscribers. "Leadership is not solely based on the number of subscribers, but also on the revenues generated from their active and continued usage of your services," Globe argued in a statement on Friday, June 8.

In the first 3 months of 2012, Globe booked P5.3 billion in postpaid service revenues, 34% higher than the PLDT group's P3.95 billion combined.

"Clearly, Globe postpaid bests competition in both customer base and revenues," added Globe.

But in terms of average revenue per user (ARPU), or the average amount of money each subscriber spends monthly, Smart alone is already ahead of Globe. Smart's ARPU is P1,302, against Globe's P1,162. Sun's ARPU is P414.

The PLDT group beat Globe in terms of subscriber number after the former acquired Digitel in March last year. The deal gave PLDT 70% of the mobile phone market, leaving Globe with only 30%.

PLDT and Digitel stressed in a June 7 statement that they have breached the 2-million postpaid subscriber mark, overtaking Globe. See chart below.

Before the marriage between the two, Globe had long held the top spot in the postpaid segment, while Smart was the leader in the prepaid. Third entrant Digitel caught up and briefly overtook Globe in 2010, but the latter reclaimed the spot.

Postpaid is the more profitable, loyal, and ideal segment for broadband-based services -- the 3 attributes that mobile phone operators in a competitive environment aspire for.


Sources & Images Credit: Rappler / Globe and PLDT Q1 2012 Financial Reports & Everything in Budget Blogspot

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