PLDT to venture into Internet TV

Manila Times
Friday, February 03, 2006

By Darwin G. Amojelar, Reporter 

PHILIPPINE Long Distance Telephone Co. plans to venture into Internet-based Television and Direct-to-Home (DTH) satellite television service despite having failed to acquire Dream, the DTH company of businessman and PLDT minority shareholder Antonio Cojuangco.

Napoleon Nazareno, PLDT president and CEO, said the company “is exploring the most efficient” technology that could provide better services to consumers but not as costly to the company.”

“We’re studying closely IPTV [Internet protocol TV] and DTH,” Nazareno told reporters.

IPTV involves delivering digital television service to subscribers using the Internet over a broadband connection. This service is often provided in conjunction with video-on-demand and may include Internet services such as Web access and Internet-based voice calls.

DTH, on the other hand, uses either satellite or cable in providing access to TV programs.

Dream, the country’s only DTH satellite company, services its subscribers through the Philippine Multimedia System Inc.

Earlier, PLDT said it is in the process of installing an all-Internet, next generation network (NGN) over the next two to three years.

“One of the key benefits of upgrading to NGN is the ability to enhance our voice and data service offerings as well as expand our product range to potentially include video such as Internet Protocol Television. In this respect, PLDT continues to look into new opportunities from advances in technology and analyze business models being undertaken by other fixed-line operators who are also rolling out broadband services,” PLDT said.

The company had been eyeing a joint venture with US-based Echostar to provide cheaper and pervasive DTH satellite pay television service in the Philippines.

In line with its planned foray into DTH, PLDT would sell its stake in the cable industry, Nazareno said.

In 1999. PLDT acquired Home Cable for P3 billion. It sold the assets to Lopez family-led Central CATV in exchange for shares in the cable TV operator.

“We would like to sell it if we can,” Nazareno said, without disclosing details.

Tie-up with Microsoft  for corporate solutions

Meanwhile, the Philippines’ biggest telco and Microsoft Philippines have entered into an agreement that will provide corporate solutions and services for both firms’ clients.

Under the memorandum of understanding, PLDT and Microsoft will combine their strengths, with the telco providing the telecommunications infrastructure and the international software company offering its technology and its knowledge of the global market.

“The objective really is to give more value to our customers through relentless innovation. Together with Microsoft, which is a very innovative company, we can have more meaningful innovations that would benefit the consumers. It’s a win-win-win situation for us,” Nazareno said.

PLDT and Microsoft will take advantage of the facilities of the PLDT InnoLab to develop these new corporate solutions.

InnoLab undertakes research and development in telecommunications technologies together with the academe, government and other business firms. It is also a venue for demonstrating various solutions for the corporate clientele.

Antonio Javier Jr., Microsoft Philippines managing director, said this is part of the software company’s efforts to look for alternative distribution models for its products.

“We’ve realized that in order to reach a broader set of the market, we have to look into a more innovative business model, a model where both business users and consumers can get to enjoy the benefits of our products on a pay-per-use basis,” he said.