Globe sees big growth in subscriber base

Ayala-led Globe Telecom Inc. expects its post-paid business, a key revenue driver, to post double digit growth in subscriber base as the company draws more clients through new smart phone offerings and flexible plans.

Peter Bithos, who heads the telco’s consumer business, said Globe had been further enhancing its strategy to better serve the post-paid market.

“Post-paid (business) is growing very aggressively, well into the double-digits,” Bithos said during the Globe launch of the Samsung Galaxy S4.

Rising affluence is also contributing to growth in the post-paid segment, Bithos said, noting how rising incomes helped the business grow.

Globe, the country’s second-biggest telecommunications firm, relies heavily on its core post-paid market, which it often describes as its stronghold. The segment accounts for only 5 percent of the subscriber base of 1.7 million clients, but contributed 34 percent to Globe’s mobile revenue in 2012.

The launch of new devices, like the Galaxy S4, is expected to help in driving up those numbers. Based on pre-orders, Bithos said the S4 was “significantly” outselling its predecessor, the S3. He, however, declined to give exact figures.

“The category at the high end is growing fast. In terms of high-end devices, we are moving more than ever before,” Bithos said.

Coco Domingo, product marketing head for Samsung Philippines, said the company expected higher sales of the S4.

Given changing preferences, Globe started to offer only smart phones and certain data-enabled devices bundled with its postpaid plans, replacing mid-priced “feature phones.”

“I would say this is the first year we have a full smart phone lineup for postpaid. Even in the prepaid market, feature phones are dying very fast,” Bithos said.

Globe has also been introducing more flexible and “fully customizable” plans to lure subscribers.

Post-paid users, for instance, can now choose a contract period for a minimum of six months against the traditional two-year lockup period.