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Monday, April 17, 2006
Innove to provide ‘stiff competition’
AFTER getting a National Telecommunications Commission (NTC) license to install landlines nationwide, Globe Telecom’s wireline business has pledged to give its competitor a run for its money.
Innove Communications chief operating officer Gil Genio said the company expects to continue to increase its nationwide subscriber base of 360,000. They expect a major part of that growth to come from areas in the country it has not served yet.
Innove had previously been allowed to serve the landline needs only of specific service areas. On June 17 last year, NTC awarded Innove with a nationwide franchise for its wireline business, allowing the company to expand its network.
“The nationwide franchise would allow Innove greater flexibility in maximizing previously invested capacities while helping the government attract foreign investments by providing a better, reliable and state-of-the-art telecommunication facilities all over the country,” Genio said.
“Customers, especially in areas where virtual monopolies exist, will them be given the choice of service provider and the opportunity to enjoy world-class service,” Globe president Gerardo Ablaza Jr. said.
Services
Innove is a wholly-owned subsidiary of Globe. It provides the company’s wireline voice communications services, including local calling, national and international long distance and other value-added services, through its postpaid, prepaid and payphone lines under the brand name Globelines.
Competition in the wireline business has been stiff, especially with the growing popularity of mobile phone, which has affected the growth of subscriber base of landline providers.
In a separate interview, Philippine Long Distance Telephone Co. Cebu business zone head Vicente Pesayco III admitted that PLDT’s subscriber base has plateaued over the years due to the take-up of mobile phone services.
He said company still dominates the landline market, including in Cebu. PLDT continues to implement aggressive marketing campaigns such as Super Bilis landline connection and “landline swapping,” where a PLDT agent visits and persuades a Globeline subscriber to switch networks.
Genio said Innove has been aware of this activity, but it is not planning to implement a similar promo.
Instead, the company is concentrating its resources on tapping new revenue streams such as the Globelines broadband, which offers high-speed data service over a nationwide broadband network and GlobeQuest wireless internet zones, which utilizes wireless fidelity (WiFi) technology that allows wireless broadband surfing at popular consumer hangouts or WiFi hotspots.
Innove’s wireline data registered a 21 percent growth in terms of operating revenue to P2.1 billion in 2005 from P1.7 billion in 2004. (JBN)
For Bisaya stories from Cebu. Click here. (April 17, 2006 issue)
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