PLDT seeks to boost sagging landline business

this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=05&dd=29&file=4

Posted: 9:17 PM | May 28, 2006
Daxim L. Lucas
Inquirer

Published on page B7 of the May 29, 2006 issue of the Philippine Daily Inquirer

WITH A new pricing scheme, the Philippine Long Distance Telephone Co. (PLDT) hopes to revive its stagnant landline business, which has been overshadowed by mobile phones in recent years, according to a company official.

The new promo, which the National Telecommunications Commission (NTC) approved last week, will initially be applied to "pilot areas" in order to test the business model and the technology that will be used to support it, PLDT spokesperson Ramon R. Isberto said.

"We do hope that this will better position us to perk up the landline business in the target areas," Isberto said.

The new scheme cuts the price of landline services to as low as P300 a month from the existing rate of over P700 a month for residential subscribers.

Company officials clarified that the service will initially be launched only in selected target areas, although it will not be restricted to new PLDT clients only. This means that existing subscribers may opt to convert their services to the proposed "Economy Plans."

The pilot program is being conducted in order to test new service packages on a limited scale and to maximize capacity utilization in certain areas, Isberto explained, adding that the new service schemes "are designed to provide new subscribers additional options in terms of pricing and service features."

The results of PLDT's pilot program will determine which new areas the service will be provided to, Isberto said.

In one proposed economy package, for example, the basic fixed line voice service monthly fee would be set at P300 for residential subscribers. This basic monthly fee remains subject to the currency exchange rate adjustment, or CERA, mechanism.

Subscribers who wish to avail of these economy plans will be levied an incremental P5 per call surcharge for domestic and international long distance calls based on existing per minute rates.

Also, subscribers to the economy plan would not be qualified to enroll in the existing P10 per call unlimited PLDT-PLDT NDD offer or other discounted rates being offered by PLDT.

For economy plan customers who wish to subscribe to either PLDT Vibe Internet dial up service or PLDT DSL broadband Internet service, they will be charged an Internet access fee of P400 per month on top of the basic fixed line voice service fee.

In addition, the existing PLDT Vibe per minute rates or the applicable PLDT DSL monthly fees will be charged.

http://money.inq7.net/topstories/printable_topstories.php?yyyy=2006&mon=05&dd=29&file=4