Ariel Fermin
Telecommunications giant Philippine Long Distance Telephone Co. built its fortune on the landline, the basic phone that used to occupy pride of place in the family home.
However, with the explosion of mobile technology that enabled practically every member of the family to have his or her own connection, the basic landline is no longer the bread and butter of PLDT, which has also transformed from just a phone company into a full-range technology and solutions provider with a big finger in many pies.
These days when subscription to basic landlines is declining globally as mobile phone connections rose spectacularly, steady sales—not increasing but not declining, either—are reason enough to uncork the champagne and celebrate. PLDT, however, is not content with flat growth.
The challenge for PLDT is to excite the market and earn more revenue from the basic landline, of which it has the most installed in the Philippines.
This it believes it did with the introduction by PLDT Home of the PLDT TVolution, a small but powerful device that improves the features of the ubiquitous TV, which is arguably the most used screen in the family home.
With TVolution, the television is transformed into an Internet TV through which subscribers can watch movies, television shows, classic games of the Philippine Basketball Association on demand, or at any time they choose.
“The idea is to provide a system of entertainment for the homes. Every home has a television but not every home has a digital TV. People have access to free TV and maybe movies through cable, but they are not in control of the content. The insight is to give the control back to the consumer,” explains Ariel Fermin, PLDT executive vice president and head of PLDT HOME Business, “The key premise is on-demand content, your choice.”
The TVolution service is available for just an extra P199 a month on top of broadband connection plans. It is available to HOME Fibr, HOME DSL and HOME Bro Ultera subscribers. Aside from movies and television series, TVolution users can access content by downloading apps like Spinnr powered by SMART Music and EA Games through PLDT HOME’s knaAPPsack.
“You just append the TVolution to the television and it automatically syncs with your Wi-Fi and presto, you’re already connected. The subscriber will need a DSL plan because the system has to work at a certain speed for better quality of streaming or flow of data such as movies,” says Fermin.
Fermin adds that the TVolution is part of the bigger growth story of PLDT, which continues its transformation into a multimedia company from a traditional phone and broadband company. TVolution is part of the P32-billion capital expenditure investment of the PLDT group.
“Globally, the landline business is at best stable. The job you need to do is to evolve to multimedia, which is a function of content. It is not just about access to broadband but adding value to that like movies, games, even music,” says Fermin.
PLDT is also putting together a school application that will transform the TV into a computer screen. Not all homes have computers but most homes have a television that children can use to help them with their homework with the help of a keyboard.
“The television is still the more relevant screen at home,” says Fermin, “From entertainment and research, we can do home monitoring and energy management down the road, convert the TV into a real smart TV. You can do that if you are backstopped by broadband, by PLDT Home.”