PLDT

Last updated

PLDT, Inc.
FormerlyPhilippine Long Distance Telephone Company (1928–2016)
Company type Public
PSE:  TEL
NYSE:  PHI
Industry Telecommunications
Predecessor
Founded Manila, Philippine Islands
(November 28, 1928;95 years ago (1928-11-28))
Headquarters
Ramon Cojuangco Building, Makati Avenue corner Dela Rosa Street, Legazpi Village, Makati, Metro Manila, Philippines
Area served
Worldwide
Key people
  • Marilyn A. Victorio-Aquino
    (SVP, Chief Legal Counsel and Corporate Secretary)
  • Catherine Yap-Yang
    (FVP & Group Corporate Communications Officer)
Products Cellular telephony
Digital Services
Fixed-line telephony
Internet Protocol television
Information technology
Satellite communications
Electricity distribution
Mass media
RevenueIncrease2.svg 205.245 billion (2022) [1]
Decrease2.svg 13.509 billion (2022) [1]
Decrease2.svg 10.735 billion (2022) [1]
Total assets Decrease2.svg 624.162 billion (2022) [1]
Total equity Decrease2.svg 108.727 billion (2022) [1]
OwnerPublic (41.55 percent)
NTT DoCoMo, Inc. (14.5 percent)
Philippine Telecommunications Investment Corp. (12.05 percent)
JG Summit Holdings (11.27 percent)
Metro Pacific Resources, Inc. (9.98 percent)
NTT Communications Corp (5.85 percent)
First Pacific (3.54 percent)
Number of employees
17,155 (2022) [1]
Parent First Pacific
Subsidiaries Smart Communications
MediaQuest Holdings
PLDT Communication and Energy Ventures
ASNs
  • 9299 (residential and business services)
  • 7629 (data center and enterprise services, operated by subsidiary ePLDT)
Website main.pldt.com

PLDT, Inc., formerly known as the Philippine Long Distance Telephone Company (Filipino : Kompanya ng Teleponong Pangmalayuan ng Pilipinas), [2] is a Philippine telecommunications, internet and digital service company. [3]

Contents

PLDT is one of the Philippine's major telecommunications providers, along with Globe Telecom and startup Dito Telecommunity. Founded in 1928, it is the oldest and largest telecommunications company in the Philippines, in terms of assets and revenues. [4]

The company's core businesses are fixed-line telecommunications, mobile telephony services, broadband, and internet of things services under various brands. It also has investments in broadcasting, print media, utilities, and direct-to-home satellite services, among others. As of 2019, PLDT is listed in the Philippine Stock Exchange and New York Stock Exchange and is being controlled by First Pacific, a Hong Kong-based investment management company, Nippon Telegraph and Telephone, through its subsidiaries, and JG Summit Holdings.

Throughout the past decades, PLDT has received numerous complaints from the Philippine House of Representatives and Senate regarding slow internet connection. [5]

History

GTE era

PLDT was established on November 28, 1928, by a Philippine Government act. Philippine legislature and approved by then governor-general Henry L. Stimson by means of a merger of four telephone companies under operation of the American telephone company GTE. [6] Known as Act 3436, the bill granted PLDT a 50-year charter and the right to establish a Philippine telephone network linking major points nationwide. However, PLDT had to meet a 40-day deadline to start implementing the network, which would be implemented over a period of one to four years.

By the 1930s, PLDT had an expansive fixed-line network and for the first time linked the Philippines to the outside world via radiotelephone services, connecting the Philippines to the United States and other parts of the world.

Telephone service in the Philippines was interrupted due to World War II. At the end of the war, the Philippines' communications infrastructure was in ruins. U.S. military authorities eventually handed over the remains of the communications infrastructure to PLDT in 1947, and with the help of massive U.S. aid to the Philippines during the 1940s and 1950s, PLDT recovered so quickly that its telephone subscribers outpaced that of pre-war levels by 1953.

Ramon Cojuangco Era

On December 20, 1967, a group of Filipino entrepreneurs and businessmen led by Ramon Cojuangco took control of PLDT after buying its shares from the American telecommunications company GTE. The group took control of PLDT's management on January 1, 1968, with the election of Gregorio S. Licaros and Cojuangco as chairman and president of PLDT, respectively. A few months later, PLDT's main office in Makati (known today as the Ramon Cojuangco Building) was opened, and PLDT's expansion programs begin, hoping to bring reliable telephone services to the rural areas. It was also during that time that PLDT was able to use Intelsat II F-4 communications satellite to beam international events such as the Apollo 8 mission and the funeral of Robert F. Kennedy in 1968.

Martial Law

PLDT was permitted to operate during Martial Law. During the 1970s, PLDT was nationalized by the government of then-president Ferdinand Marcos and in 1981, in compliance of then existing policy of the Philippine government to integrate the Philippine telecommunications industry, purchased substantially all of the assets and liabilities of Republic Telephone Company, becoming the country's telephone monopoly. Under this monopoly, service expansion were severely curtailed or practically nonexistent. In the Martial Law years people would apply for phone service only to wait for years and years on end behind an impossibly long application backlog. It is not unheard of for people and small businesses back then to barter for a single telephone line in the black market for tens of thousands of pesos. The incumbent Singaporean Prime Minister Lee Kuan Yew referred to the situation when visiting the Philippines during the term of President Fidel V. Ramos. He said, albeit in jest, “In the Philippines, 95% of the population has no telephone, while the remaining 5% are waiting for that dial tone.” [7] [8]

Tonyboy Cojuangco Era

After President Marcos was overthrown in 1986, the company was re-privatized and Cojuangco's son, Antonio "Tonyboy" O. Cojuangco, Jr. became chief executive. [9] On March 16, 1988, PLDT launched the country's first cellular phone system in Sampaloc, Manila to enable the public use of mobile phones. [10] By 1995, with the passage of the Telecommunications Act and the subsequent deregulation of the Philippine telecommunications industry, the company has been de-monopolized.

In 1992, PLDT partnered with AT&T Corporation to expand its services into rural communities; including USA Direct Roving Van Service, a mobile van equipped with cellular phones, to provide toll service to some previously unserved rural communities; point-to-point international digital leased line service; payphone services; and magnetic prepaid telephone cards. By 1997, the company, through Mabuhay Satellite Corporation, launched the Philippines' first local communications satellite, Agila II (It was later divested to Asia Broadcast Satellite in 2009).

First Pacific Era

4th PLDT logo (1996-2016) PLDT logo.svg
4th PLDT logo (1996–2016)

In 1998, Hong Kong-based First Pacific Company Ltd. acquired a 17.5% controlling stake in PLDT for approximately P29.7 billion. Following the acquisition by the First Pacific group, Manuel V. Pangilinan became the new president and CEO of PLDT, replacing Cojuangco, who assumed the post of chairman until 2004. [9] An additional investment was added in 2000 through a share-swap agreement; where NTT Communications, a subsidiary of Nippon Telegraph and Telephone, acquired a share in PLDT in exchange for its co-owned wireless telecom company Smart Communications.

PLDT acquired 51.55% of the shares of Digital Telecommunications Philippines from JG Summit Holdings in March 2011 with the cost of ₱69.2 Billion. Because of this, the shares of Digitel and JG Summit in the PSE surges while PLDT's shares remained unchanged. In the deal, JG Summit will have a 12% share in PLDT. It was finalized by the National Telecommunications Commission on October 26, 2011. In exchange of the transaction, PLDT's subsidiary Smart Communications surrendered the mobile frequency and spectrum being used by its service Red Mobile to the government, which was finalized in 2016.

In April 2016, the company, then known as the Philippine Long Distance Telephone Company, dropped the "long distance telephone" from its corporate name and was renamed PLDT Inc. [11] Its board of directors approved the new corporate name to reflect on the company's new range of services, mainly focusing on data services. On June 13, 2016, PLDT and its subsidiary Smart unveiled their new logos and identity as part of the company's continuing digital pivot. [3]

On March 16, 2023, it was announced that PLDT was to acquire the broadband business of Sky Cable Corporation. [12] [13] Earlier, there was already a deal where Cignal Cable Corporation was set to acquire minority stake of Sky Cable Corporation but it was terminated due to alleged political pressure. [14]

On Mar 09, 2024, PLDT obtained a P1 billion green Loan facility from HSBC Bank Philippines to partially finance the modernization and expansion of its fiber network supporting internet delivery platforms such as fiber fixed broadband, mobile data services and carrier grade WiFi. [15]

In a 38-page decision penned by Rodil Zalameda and promulgated on February 14, 2024, the High Tribunal ordered the regularization of 7,344 "contractual employees" of PLDT engaged in line installation, repair, and maintenance. It dismissed the consolidated petition for review on certiorari filed by Silvestre Bello III and the Mangaggawa ng Komunikasyon ng Pilipinas, affirming a Court of Appeals judgment that found PLDT and its contractor committed labor violations. It however clarified that "labor contracting is not per se illegal, following Article 106 of the Labor Code expressly allowing an employer to engage in legitimate labor contracting, which the DoLE implements through DO 18-A and DO 174-2017." [16] The high court finally remanded the case to the Office of the Regional Director of Dole NCR "to review and determine the impact of the regularization of the workers performing installation, repair, and maintenance services and to review, compute, and properly determine the monetary award on the labor standards violation, to which petitioner PLDT Inc. and the concerned contractors are solidarily liable." [17]

Operations

Fixed Line

PLDT's fixed line business offers services intended for enterprises, small and medium enterprises, and corporate consumers – including corporate data, ICT solutions, data networking, and cybersecurity solutions. PLDT also offers local exchange telephone services for Subic Bay Freeport, Clark Freeport Zone, Bonifacio Global City, and selected cities in Mindanao through its subsidiaries.

PLDT's retail fixed line services are branded under PLDT Home brand. It offers home broadband, IPTV, and triple play packages with devices from TP-Link and Roku.

Wireless

A store of PLDT's flagship wireless brand Smart Communications in SM Megamall, Mandaluyong. Smart Communications Flagship Store.jpg
A store of PLDT's flagship wireless brand Smart Communications in SM Megamall, Mandaluyong.

PLDT operates its wireless cellular services through its brands, namely Smart and TNT

Smart, its flagship brand, offers commercial wireless services through its 2G, 3G, 3.5G HSPA+, 4G LTE network, and 5G in the key areas in the Philippines. Smart also offers terrestrial satellite communication services and wireless complimentary offerings.

TNT provides a wide range of offerings in low-cost call, text, and mobile internet packages, as well as other value-added services.

Investments

The headquarters of broadcasting company TV5 Network in Mandaluyong. TV5 Network is funded by PLDT through MediaQuest Holdings. TV5 Media Center (Reliance cor. Sheridan, Mandaluyong; 2017-01-06).jpg
The headquarters of broadcasting company TV5 Network in Mandaluyong. TV5 Network is funded by PLDT through MediaQuest Holdings.

PLDT currently invests in media through Pilipinas Global Network and MediaQuest Holdings, funded through its Beneficial Trust Fund. MediaQuest's assets include broadcasting firms TV5 Network and Nation Broadcasting Corporation, direct-to-home satellite operator Cignal TV, and major newspaper companies The Philippine Star and BusinessWorld, among others. [18]

PLDT also has investments in energy utility (Meralco, through PLDT Communication and Energy Ventures), business jet transportation (Pacific Global One Aviation Company), and e-commerce and financial technology development (Voyager Innovations), among others.

Ownership

The company's ownership is divided among the public (41.55%), [19] Philippine Telecommunications Investments Corporation (12.05%), Metro Pacific Resources, Inc. (9.98%); non-Philippine subsidiaries of First Pacific Company Limited (3.54%), NTT Communications Corp. (5.85%), NTT DoCoMo, Inc. (14.5%), and JG Summit Group (11.27%).

Criticisms

Bandwidth caps

In October 2015, PLDT introduced so-called "volume boosters" (instead of 30% bandwidth throttling in 2014 and 256kbit/s bandwidth throttling in 2015) when exceeding monthly 30GB to 70GB bandwidth cap for TD-LTE connection plans (Ultera). "In case your usage exceeds your monthly volume allowance, you can still enjoy the internet by purchasing additional volume boosters. Otherwise, connectivity will be halted until your monthly volume is refreshed on your next billing cycle." [20] Globe followed the suit with a similar "volume boost" arrangement. [21]

This practice has since been weaned off for fixed broadband such as DSL and fiber optic, particularly with capped rates being silently retired. Globe, who previously retired all their unlimited data rates to capped ones, have reintroduced uncapped rates too.

Lock-in period

In 2015, PLDT increased lock-in period for TD-LTE connection plans from 24 to 36 months (3 years) with the pre-termination fee equal to the full balance for the remaining period. After the lock-in period the contract is automatically renewed for another 36 months subject to the same terms and conditions. [22] As of now the Globe lock-in period is still 2 years with no pre-termination fee outside of the lock-in period. [23] The PLDT TD-LTE contract allows PLDT to change the terms and conditions at any time with the only way left for subscribers to opt out of the altered service through paying the full pre-termination fee: "8.3 Modification. SBI reserves the right at its discretion to modify, delete or add to any of the terms and conditions of this Agreement at any time without further notice. It is the Subscriber’s responsibility to regularly check any changes to these Terms and Conditions. The Subscriber’s continued use of the Service after any such changes constitutes acceptance of the new Terms and Conditions." [22] Even as the Consumer Act of the Philippines states "Unfair or Unconscionable Sales Act or Practice ... the following circumstances shall be considered ... that the transaction that the seller or supplier induced the consumer to enter into was excessively one-sided in favor of the seller or supplier", [24] the practice of inducing extremely long-term contracts with the ultimate pre-termination penalty has not been legally challenged yet.

Subsidiaries and affiliates

Sports teams

Esports

See also

Related Research Articles

Telecommunications in the Philippines are well-developed due to the presence of modern infrastructure facilities. The industry was deregulated in 1995 when President Fidel Ramos signed Republic Act No. 7925. This law opened the sector to more private players and improved the provision of telecom services are better and fairer rates, leading to the creation of many telecommunication service providers for mobile, fixed-line, Internet and other services.

<span class="mw-page-title-main">SK Telecom</span> South Korean telecommunications company

SK Telecom Co., Ltd., abbreviated as SKT is a South Korean wireless telecommunications operator and former film distributor and is part of the SK Group, one of the country's largest chaebols. It leads the local market with 50.5 percent share as of 2008. SK Telecom is the largest wireless carrier in South Korea, with 27.019 million subscribers as of Q4 2017.

<span class="mw-page-title-main">Telekom Malaysia</span> Malaysian telecommunications company

Telekom Malaysia Berhad or simply TM is a Malaysian telecommunications company founded in 1984. Beginning as the national telecommunications company for fixed line, radio, and television broadcasting services, it has evolved to become the country's largest provider of broadband services, data, fixed line, pay television, and network services. TM ventured into the LTE space with the launch of TMgo, its 4G offering. TM's 850 MHz service was rebranded as unifi Mobile in January 2018.

<span class="mw-page-title-main">Globe Telecom</span> Telecommunications company in the Philippines

Globe Telecom, Inc., commonly shortened as Globe, is a major provider of telecommunications services in the Philippines. The company operates the largest mobile network in the Philippines and one of the largest fixed-line and broadband networks. As of November 2023, Globe has 54.7 million subscribers, making it the second largest network in terms of subscriber base.

<span class="mw-page-title-main">Sun Cellular</span> Telecommunications company in the Philippines

Digitel Mobile Philippines, Inc., doing business as Sun Cellular, was a wholly owned subsidiary of Digital Telecommunications Philippines (Digitel), which in turn was owned by PLDT and is one of the Philippines' largest mobile telecommunications companies. It was established by Digitel in September 2001 to provide wireless public and private telecommunications services. Sun Cellular was known for introducing unlimited call and text services in the Philippines.

<span class="mw-page-title-main">Smart Communications</span> Telecommunications company in the Philippines

Smart Communications Inc., commonly referred to as Smart, is a wholly owned wireless communications and digital services subsidiary of PLDT Inc., a telecommunications and digital services provider based in the Philippines. As of November 2023, it is currently the largest mobile network with 55.2 million subscribers.

<span class="mw-page-title-main">Claro Puerto Rico</span> Puerto Rican telecommunication company

Claro Puerto Rico is one of the largest telecommunications services company in Puerto Rico. It is headquartered in Guaynabo, Puerto Rico, and has operated for almost a century offering voice, data, long distance, broadband, directory publishing and wireless services for the island residents and businesses. It was founded by the Behn brothers, Sosthenes and Hernan. Originally, Puerto Rico Telephone Company eventually spawned ITT Corporation, which was founded by Sosthenes Behn. The company was a public corporation of the government of Puerto Rico for many years until the majority stakes were acquired by GTE in the mid-1990s. It was a subsidiary of Verizon Communications until it was fully acquired by América Móvil in 2007.

<span class="mw-page-title-main">Internet in the Philippines</span> Overview of the Internet in the Philippines

Internet in the Philippines first became available on March 29, 1994, 10:18 a.m., with the Philippine Network Foundation (PHNet) connecting the country and its people to Sprint in the United States via a 64 kbit/s link. As of February 2023, there are 85.16 million internet users in the country, where internet penetration stood at 73.1% of the total population.

The PLDT Communications and Energy Ventures Inc., formerly known as Pilipino Telephone Corporation or Piltel, is a holding company of the PLDT Group for its venture into the electricity distribution industry. Previously, it was one of the mobile and fixed-line telephone service providers in the Philippines. PCEV is 99.5%-owned by Smart Communications, a wholly owned subsidiary of the Philippine Long Distance Telephone Company (PLDT). The remaining 0.5% of PCEV's shares is owned by the Filipino investing public. Through PCEV, PLDT forms a consortium with Metro Pacific Investments Corporation to form Beacon Electric Asset Holdings, Inc. which is the majority owner of Meralco.

<span class="mw-page-title-main">Digital Telecommunications Philippines</span> Defunct telecommunications company in the Philippines

Digital Telecommunications Phils., Inc., commonly known as Digitel, was the second-largest fixed-line and the third-largest mobile telecommunications company in the Philippines. It was also the company that owned Sun Cellular, a mobile phone service.

<span class="mw-page-title-main">Red Mobile</span> Mobile virtual network operator in the Philippines

Red Mobile, formerly ümobile and legally as Connectivity Unlimited Resource Enterprise, Inc. (CURE), was a wholly owned subsidiary of Smart Communications, the Philippines' largest mobile telecommunications company. When it was initially launched as ümobile, it used the CURE Universal Mobile Telecommunications System network. At that time, it offered its services through an invitation-based, ad-supported platform, catering to middle and upper-class subscribers between the ages of 15 and 35, devoting its services to that demographic. After re-branding, both the ad-supported revenue platform and invitation system were scrapped in favor of a more traditional marketing and revenue-generating approach. In March 2010, Red Mobile started promoting its unlimited service offerings. However, subscribers started reporting on online social networks that the CURE UMTS network has since been converted to a GSM network. It closed in July 2012.

MediaQuest Holdings, Inc. is a Philippine media company based in Mandaluyong. It is involved in radio and television broadcasting, as well as direct-to-home satellite services and print media. Though an affiliate of telecommunications company PLDT, MediaQuest is owned by the former's Beneficial Trust Fund, a retirement pension plan funded through its Philippine Depository Receipts. PLDT does not directly own any media property as the current 1987 Constitution states that media companies should be 100% owned by Filipinos and the company's major shareholders include foreign entities such as First Pacific and Nippon Telegraph and Telephone.

<span class="mw-page-title-main">Sky Cable Corporation</span> Telecommunications company in the Philippines

Sky Cable Corporation, doing business as Sky, is a Filipino telecommunications company based in Diliman, Quezon City. A subsidiary of the media conglomerate ABS-CBN Corporation, the company offers broadband, cable and satellite television services under the Sky Cable and Sky Direct brands. The company was founded on June 6, 1990 by Benpres Holdings Corporation as Central CATV, Inc.

A bidding was held in November 2018 to determine the prospective third major telecommunications service provider in the Philippines which is meant by the Philippine government to compete with the existing duopoly of PLDT, Inc.–Smart Communications and Globe Telecom.

<span class="mw-page-title-main">Dito Telecommunity</span> Telecommunications company in the Philippines

DITO Telecommunity Corporation, formerly known as Mindanao Islamic Telephone Company, Inc. or Mislatel is a telecommunications company in the Philippines which is also engaged in the business of multimedia and information technology. It is a consortium of DITO CME Holdings Corporation, a subsidiary of the Udenna Corporation which is owned by Davao businessman Dennis Uy, and China Telecommunications Corporation, a state-owned enterprise of the government of mainland China and a parent company of China Telecom.

<span class="mw-page-title-main">Cignal TV</span> Philippine media and telecommunications company

Cignal TV, Inc., also known by its legal trading name Mediascape Inc., is a Filipino media and telecommunications firm in the Philippines. A wholly owned subsidiary of the media company MediaQuest Holdings under the PLDT Beneficial Trust Fund, the firm operates its pay television services, subscription television networks, television and film entertainment production, and fiber broadband internet.

<span class="mw-page-title-main">Now Telecom</span> Telecommunications company in the Philippines

Now Telecom Company, Inc. is a telecommunications firm based in the Philippines. The company provides broadband and fiber-optic communication services to upper-class residential and commercial areas in Metro Manila under the Now Fiber Air brand. The firm, along with Now Corporation and News and Entertainment Network Corporation (NEWSNET), formed the unified Now Network service.

Eastern Telecommunications Philippines, Inc. (ETPI), doing business as Eastern Communications, is the first telecommunications company in the Philippines under Vega Telecom. Founded in 1878 during the final years of the Spanish colonial era, it was the first company to provide telegraphic services.

References

  1. 1 2 3 4 5 6 SEC Form 17-C with Management's Discussion and Analysis (4Q 2022) (PDF) (Report). March 23, 2023.
  2. "Maligayang Bati Sa Iyo" [Season's Greetings to You]. Commercial advertisement. Liwayway (in Tagalog). Vol. XVI, no. 5. Manila: Ramon Roces Publications, Inc. December 10, 1937. p. 100.
  3. 1 2 "PLDT, Smart unveil new logo in line with 'digital pivot'". PLDT. June 13, 2016. Retrieved June 13, 2016.
  4. PLDT Financial Results
  5. Yap, DJ (December 26, 2014). "Congress urged to probe slow Internet service in PH". Philippine Daily Inquirer. Retrieved September 28, 2021.
  6. PHILIPPINE LONG DISTANCE TELEPHONE COMPANY Archived January 2, 2011, at the Wayback Machine retrieved May 7, 2013
  7. "PLDT-Digitel mega-deal violates law | Inquirer Opinion". Opinion.inquirer.net. May 27, 2011. Retrieved September 14, 2013.
  8. Eaton, Kent (January 2008). Politicians and Economic Reform in New Democracies: Argentina and the Philippines in the 1990s. Penn State Press. ISBN   978-0271045849.
  9. 1 2 "History". PLDT. Retrieved September 14, 2013.
  10. "PLDT launches RP's first cellular phone". Manila Standard . Standard Publications, Inc. March 16, 1988. Retrieved January 13, 2023.
  11. "PLDT drops 'long distance,' soon to be called PLDT, Inc". Rappler . April 13, 2016. Archived from the original on April 16, 2016. Retrieved June 15, 2016.
  12. "PLDT to take over Sky's broadband business". Philstar.com. Retrieved April 7, 2023.
  13. "PLDT, bibilhin ang SKY Cable sa halagang P6.75B". PEP.ph. Retrieved April 7, 2023.
  14. Neil (September 1, 2022). "ABS-CBN, TV5 terminate landmark partnership deal". BusinessWorld Online. Retrieved April 7, 2023.
  15. "PLDT secures P1B 'green loan'". SunStar Cebu. March 9, 2024. Retrieved March 10, 2024.
  16. Locus, Sandy (March 9, 2024). "SC orders PLDT to regularize employees engaged in installation, repair and maintenance of service lines". GMA Integrated News . Retrieved March 10, 2024.
  17. Bautista, Jane (March 8, 2024). "SC: Workers servicing PLDT lines must be regularized". Philippine Daily Inquirer . Retrieved March 10, 2024.
  18. "PLDT to lower stake in Voyager". BusinessMirror .[ permanent dead link ]
  19. "Public Ownership Report as of September 30, 2020". PLDT. Retrieved January 6, 2021.
  20. "PLDT HOME Ultera support library, FAQ". Archived from the original on February 15, 2017. Retrieved March 2, 2017.
  21. "Globe – FAQ – Volume Boost".
  22. 1 2 "Terms and Conditions". Archived from the original on November 4, 2020. Retrieved March 2, 2017.
  23. "Tattoo Free Installation Promo>FAQs". Archived from the original on June 26, 2016. Retrieved March 2, 2017.
  24. "R.A. 7394". lawphil.net.

Commons-logo.svg Media related to PLDT at Wikimedia Commons