TelecomLead.com Research indicates key strategies of Globe Telecom and PLDT, two leading operators, for enhancing customer experience in the Philippines.
Globe Telecom
Globe Telecom has implemented several strategies to enhance customer experience, contributing to significant growth in mobile revenues and an expanding customer base.
“Every Filipino deserves access to reliable communication services. We’re here to empower them with the tools they need to thrive in a digital world,” Joel Agustin, Head of Service Planning and Engineering of Globe Telecom, said.
Here are the key strategies that Globe Telecom has adopted to elevate customer satisfaction:
# Network Infrastructure Investments
Globe has upgraded 450 cities and towns across 60 provinces to fiber-optic technology. This migration from copper to fiber enhances connectivity for wireline customers, providing high-speed, reliable internet that supports remote work, online learning, and entertainment. The fiber upgrade also reduces energy consumption and minimizes service interruptions caused by copper cable theft.
The rollout of 256 new 5G sites in the first half of 2024 has improved network coverage, achieving 98.45 percent outdoor 5G coverage in the National Capital Region and 94.19 percent in key cities in Visayas and Mindanao. By connecting over 7 million devices to its 5G network, Globe meets the growing demand for faster mobile data services.
# Innovative Digital Solutions
With mobile data accounting for 82 percent of mobile revenues, Globe has focused on enhancing mobile data offerings. The record-breaking ₱24.2 billion in quarterly mobile data revenues reflects a strong commitment to providing customers with improved data services to support their online activities.
Globe has established 5G roaming partnerships with 167 operators across 87 international destinations, enabling customers to access reliable mobile services while traveling abroad.
# Customer-Centric Approach
Globe aims to empower every Filipino with reliable communication services, offering tools necessary for thriving in a digital world. This mission drives the company’s focus on providing seamless connectivity and enhanced digital experiences.
Globe connected over 500 Geographically Isolated and Disadvantaged Areas (GIDAs), ensuring that underserved communities have access to essential online services and opportunities, which helps bridge the digital divide.
# Operational Efficiency and Sustainability
Globe’s network expansion is aligned with a strategy to maximize existing resources, building 352 new cell towers and upgrading 1,942 mobile sites to LTE technology. This approach allows for efficient infrastructure development while ensuring high-quality services for customers.
The shift to fiber technology not only enhances customer experience but also contributes to lower carbon emissions, supporting Globe’s sustainability initiatives.
# Enhanced Customer Engagement
Globe has focused on developing innovative solutions that cater to the evolving needs of its customer base, fostering deeper engagement and satisfaction.
Globe actively listens to customer feedback and adapts its services to ensure they meet user expectations and preferences.
PLDT
PLDT has implemented several strategic initiatives to enhance customer experience, leading to revenue growth and improved service offerings.
Here are the key strategies that PLDT has adopted:
# Expansion of Fiber Infrastructure
PLDT operates the most extensive fiber infrastructure in the Philippines, spanning over 1.1 million kilometers. This extensive network supports both fixed and mobile services, ensuring broad coverage and high-quality connectivity for customers.
In the first half of 2024, fiber revenue increased by 7 percent to ₱27.6 billion, which constitutes 92 percent of Home revenues. This growth reflects the company’s commitment to enhancing its fiber offerings and meeting customer demand for high-speed internet.
# Innovative Product Offerings
PLDT introduced Gigabit Fiber Plans with ultra-fast internet speeds of up to 10 Gbps, catering to households with high bandwidth demands. This service supports multiple devices and is ideal for activities such as streaming 4K videos and online gaming, positioning PLDT as a leader in internet connectivity.
PLDT’s Fiber Unli All Plan 1399 offers double internet speeds (up to 100 Mbps) along with unlimited mobile calls, enhancing family connectivity. The plan also bundles entertainment options like Cignal TV, addressing diverse consumer needs while maintaining affordability.
# Customer-Centric Services
PLDT focuses on improving customer care to enhance the overall customer experience. This includes reducing churn rates, which dropped from 1.82 percent in Q1 2024 to 1.52 percent in Q2 2024, indicating better customer retention and satisfaction.
Fam Call Feature allows customers to make free calls and texts across mobile and landline devices. Customers can nominate up to five Smart or TNT numbers for unlimited mobile calls, enhancing communication within families.
# Growth Initiatives
PLDT emphasizes customer acquisition through targeted marketing and promotions. Additionally, the company encourages usage upgrades by offering plans that meet various customer segments, from high-end users to lower-end markets.
Capex for H1 2024 was ₱18.8 billion, with a 2024 capex guidance set at ₱75-78 billion. This investment focuses on expanding fixed and wireless networks, data centers, and submarine cable infrastructure, ensuring that PLDT can support increased data traffic and enhance service quality.
# Adapting to Market Demand
PLDT has developed a variety of plans to cater to different market segments, such as Gigabit Fiber for high-end users and prepaid Fiber for budget-conscious customers. This diversification helps meet the specific needs of a wide range of consumers.
A 14 percent increase in ARPU is driven by higher usage and data traffic, which reflects PLDT’s success in providing value to customers through enhanced services and offerings.
# Focus on Technology and Innovation
PLDT’s advancements in Gigabit Fiber Plans are designed to power smart home technologies, enabling customers to seamlessly integrate their devices and enhance their living experiences. This positions PLDT as a pioneer in enabling digital innovations for Filipino households.
Through strategic investments in infrastructure, innovative product offerings, and a customer-centric approach, PLDT has successfully enhanced customer experience and driven revenue growth. These initiatives position PLDT as a leading telecommunications provider in the Philippines, catering to the evolving needs of its diverse customer base while fostering digital transformation across the nation.
GlobalData report on Philippines telecoms
Analysts at GlobalData said the telecom and pay-TV services revenue in the Philippines is expected to increase at a CAGR of 1.1 percent, from $8.2 billion in 2023 to $8.7 billion in 2028, supported by the uptick in revenue from fixed broadband services.
Mobile data service revenues will grow at a CAGR of 0.6 percent, supported by the aggregate growth in mobile internet subscriptions, particularly on 4G/5G networks and rise in consumption of data services.
Sarwat Zeeshan, Telecom Analyst at GlobalData, says: “4G services accounted for a majority share of the overall mobile subscriptions in 2023 in the Philippines.”
Fixed broadband service revenues will grow at a CAGR of 5 percent over the 2023-2028 period, in line with the growth in fiber and fixed-wireless subscriptions, on the back of government and telcos efforts to to expand broadband connectivity.
Converge ICT Solutions extended its fiber footprint to 685,000km as of December 2023. PLDT expanded its total fiber footprint to 1.1 million kilometers as of September-end 2023.
Baburajan Kizhakedath
