Globe claims top spot in mobile postpaid business

MANILA, Philippines–Globe Telecom on Wednesday claimed the top spot in the mobile postpaid business, in apparent reaction to a statement made by rival Philippine Long Distance Telephone Co. last week asserting that it was the market leader in terms of subscribers in 2014.

Globe, owned by Ayala Corp. and Singapore Telecommunications Ltd., said in a statement that revenue market share, not subscribers, was the current accepted standard in establishing market leadership around the world.

By revenues, Globe’s postpaid segment recorded an 11-percent increase to P29.9 billion last year. That accounted for 58 percent of the postpaid market as PLDT’s postpaid segment pulled in about P21.7 billion in 2014.

PLDT president Napoleon Nazareno on Wednesday said that growing subscribers was a key part of the group’s strategy because it would lead to higher revenues moving forward.

Dan Horan, Globe senior advisor for consumer business, said in a statement that revenues were a more reliable measure of market leadership. This measure is being used for telecommunications across the world.

“Revenue market share has been seldom used in emerging markets such as the Philippines, and it’s about time to change,” Horan said, adding that Globe would set the standard.

“The global metric that uses revenue as a basis to define market leadership is one that is profitable and sustainable. Clearly, mobile postpaid is a segment that Globe has dominated through the years, based on this global leadership metric.”

PLDT units Smart Communications and Sun Cellular announced on March 9 that they dominated the postpaid segment in 2014 with 2.8 million subscribers, or about 55 percent of the total market. It said revenues during the period grew 14 percent to P21.7 billion.

Postpaid revenues now account for 21 percent of total cellular revenues for the PLDT wireless business. For Globe, the postpaid segment accounted for 38 percent of of total mobile revenues in 2014.

Both companies have been launching new promotions to bolster their postpaid businesses.

Globe recently launched a postpaid plan offer dubbed myLifestyle Plan, which gives customers access to an “easier and simplified plan offer” starting at P499 a month.

Smart separately announced packages that come with entry-level handsets, data allowance, and access to unlimited music streaming via Spinnr.