HISTORY

When PLDT was incorporated and given the franchise to establish and operate telephone services in the country on November 28, 1928, a typhoon had just ravaged Eastern Visayas, Bicol Peninsula, and Samar. The ability to communicate amongst loved ones and across the country became crucial. Sadly, phone networks then were like disconnected intercom systems and you could only call people within your own small city. Filipinos were disconnected from neighboring towns, disconnected from friends in the other island and, needless to say, disconnected from the rest of the world. It was under this scenario that the law was signed giving birth to PLDT. What the new law hoped to achieve was to interconnect these "intercom" systems into a seamless nationwide network that would facilitate communication and delivery of services to the people, as well as spur economic development in the countryside. The first president of PLDT was Theodore Vail Halsey while Major J.E. Hamilton Stevenot, who represented the American firm General Telephone and Electronics Corp. (GTE), was elected executive vice president and general manager. Under the American owners of PLDT, many small phone companies in the provinces were acquired by the Company to help speed up the rollout and connection of these different phone systems all over the country. The management of PLDT was then set to lay the groundwork towards linking Filipinos to each other and, more importantly, to the world. Just a year after PLDT was given its nationwide franchise, the link between Manila and Baguio was established, making the first national long distance calls possible. Overseas radio-telephone service was also established between the Philippines and the US and other parts of the world in 1933.

The first network of PLDT employed the open-wire system that was difficult to maintain and vulnerable to rain, winds, dirt, and tampering. Horse-drawn service vehicles bulky wallmounted telephones were employed in those times. PLDT then charged a sum of P7.50 a

month. The war years in the 1940's that followed proved to be devastating to PLDT as the US armed forces destroyed the PLDT system to prevent the Japanese from using it in 1941. By the time the Americans regained control, only 10 percent of the original facilities were operational. By 1968, a new era of PLDT leadership was ushered in; PLDT finally became a Filipino-controlled corporation when Ramon Cojuangco and his group of Filipino industrialists and businessmen bought the controlling stake of GTE of New York. It was a symbol of national pride and a moment of triumph for Filipinos. Under Cojuangco's leadership, PLDT embarked on ambitious expansion campaigns that led to more Filipinos owning and benefiting from phones.

Several milestones were realized in Cojuangco's time. In the same year when his group came in, the first major television broadcast via the facilities of Intelsat II-F4 and PLDT was brought to the Philippines direct from the US during the funeral of Senator Robert F. Kennedy. Another milestone in satellite communications was achieved, with PLDT playing a major role, in the subsequent remote TV coverage of the Apollo 8 flight. By 1982, direct distance dialing or DDD was becoming a byword for Filipinos. Subscribers then could call long distance to nine major cities across the nation and 22 countries around the world and reach through direct dialing more than 400 million telephones overseas. This service eventually evolved into National Direct Dialing (NDD) and International Direct Dialing (IDD) by 1985. *PLDT's ascent to greater heights of success was punctuated briefly by the death of Cojuangco in 1984. Cojuangco, who was largely responsible for the transformation of the Company from a medium-sized firm into a multi-billion-peso giant, was highly regarded by PLDT employees and considered very compassionate.

It was then that Oscar T. Africa was elected as the new president while Cojuangco's son, Antonio, was elected Senior Executive Vice President. Africa, however, retired after only two years as president. Antonio Cojuangco succeeded him in 1986, ushering in a 12-year period of further expansion and robust business for PLDT.

Another significant PLDT milestone was the establishment of the country's first cellular telephone network in 1987. Cellular phones then were bulky and installed only in cars. With this new service, people were able to communicate while on the go. Coverage, just like with the mobile radio-telephone service introduced in 1959, was wider, though still limited compared today. Subscribers then could make calls within Metro Manila and any place from Cavite to Baguio.

A slew of new services were also introduced beginning 1992. Through a partnership with American Telephone and Telegraph Co. (AT&T). PLDT introduced the USA Direct Roving Van Service, a mobile van equipped with cellular phones, to provide toll service to some previously unserved rural communities

Other services introduced were USA Direct Mabuhay (dial access code 105-12) and Fibernet, a point-to-point international digital leased line service capable of handling simultaneous voice and data transmissionsusing fiber optic cables.

Intelligent pay phones, which can accept coins of several denominations, were introduced. The Fonkard also came into vogue. Fonkard allowed the caller to make direct-dial national and international long distance calls through the use of prepaid magnetic telephone cards instead of coins. A significant milestone that changed the face of communication was the successful launching of Agila II, the country's first communications satellite, in 1997 by PLDT subsidiary Mabuhay Philippines Satellite Corp. The satellite serves the needs of customers not only in the Philippines but also other countries within the satellite's footprint in the Asia Pacific region.

With the increasing importance of the Internet, PLDT signed a network deal with US-based software giant Oracle Corp. to jointly advance the development of a network computing infrastructure in the Philippines dubbed Phil-Net. A milestone for PLDT and the development of the Internet in the Philippines would be the establishment of the country's first Internet hub called the Philippine Internet Exchange or PhIX.

The late '90's was a time of formidable challenges for PLDT, especially after the 1997 Asian financial crisis. Inauspicious as it may seem at the time, however, Manuel V. Pangilinan of Hong Kong-based First Pacific Co. Ltd. saw a great opportunity in taking control of PLDT.

So on Nov. 24,1998, just four days before the company's anniversary, PLDT announced the entry of First Pacific which acquired a 17.5-percent stake in PLDT for approximately P29.7 billion or some $749 million at that time. The entry of First Pacific brought in a new culture in PLDT and new enterprise. Manuel V. Pangilinan replaced Antonio O. Cojuangco as president and chief executive officer. Cojuangco then assumed the position of chairman of the board.

The following year, PLDT forged a strategic partnership with NTT Communications Corp (NTTCom), a wholly-owned subsidiary of Nippon Telegraph and Telephone Corp. of Japan, the world's leading telecommunications company in terms of revenues. Smart Communications, Inc. (Smart), the country's largest mobile phone operator, was also acquired by PLDT.

The acquisition of Smart proved to be a wise decision, especially now that Smart is contributing greatly to PLDT's bottom line, thus buffering the telecoms giant from the debilitating effects of declining revenues from the fixed line business.

Investing in ICT
One of the key steps undertaken in 2000 was the formation of ePLDT, the PLDT Group's principal vehicle for investments in information and communication technology.

Through its data services under the Vitro brand, its call centers under ePLDT Ventus Inc., Internet services through Infocom Technologies Inc.,data security services through mySecureSign Inc., and Internet cafe business through Netopia Technologies Inc.,the PLDT Group is now slowly reaping the fruits of its investments.

Innovating the landline

Brains--an acronym for Broad and Robust ATM (asynchronous transfer mode) and Internet Networking Solutions--was launched in 2000 and made PLDT the only telecommunications company with the fastest, most reliable and cost-efficient voice, data and video transmission services running through a single multi service network.

DSL, or digital subscriber line, was also introduced in the same year. It is a broadband access technology that allows for high-speed access to the Internet via the usual copper wire lines.

Other innovative services were introduced: Text 135, the country's first landline texting service; Premium Phone Services (1-908), which employed strategic tie-ups with TV game shows; Budget card for international calls; and bundling of value-added phone services such as Call Waiting, Call Forwarding, 3-party conference calls, Speed Calling, and Caller ID.

When the year 2002 came, PLDT continued to innovate and introduced a pioneering prepaid landline service where subscribers can load up their phones with P500-load that is valid for two months and with a one-month reprieve to reload.

In 2004, the PLDT Board of Directors appointed Manuel V. Pangilinan to the position of Chairman of the Board while retaining his post as Chairman of the Board of Smart and ePLDT. Napoleon L. Nazareno is the concurrent President and CEO of PLDT and Smart.

Next Generation Network

As PLDT's products and services continued to evolve, the Company began upgrading its network in 2005 to the Next Generation Network, a broad term for certain emerging computer network architectures and technologies that can encompass voice, data and video where all information is efficiently transmitted via digital packets of data just like over the Internet.

This means greater efficiency, cost savings and more innovative services for subscribers in the years to come.

NGN is not the goal in itself but rather a key enabler for transformation to what the PLDT Group calls Next Generation Communications. This transformation goes beyond upgrading the network to an all-IP NGN. It also involves re-engineering processes, integrating our platforms, transforming products and re-orienting people.

In 2006, PLDT saw the rapid growth of its broadband business on the back of the Group's wired and wireless infrastractures. PLDT MyDSL and SmartBro broadband subscribers more than doubled to 265,000 by year end.

In late 2006 and early 2007, MediaQuestHoldings - a wholly-owned subsidiary of the PLDT Beneficial Trust Fund - and Smart joined hands to conduct test broadcasts of a mobile TV service using the Digital Video Broadcast - Hand held (DVB-H) standard. This was made possible through MediaQuest's subsidiary, Nation Broadcasting Corp., which operates a network of radio and TV stations.

Culture of Innovation
It's all part of PLDT's culture of innovation to bring its operations to world-class standards and become the best telecommunications company in the region. Today, PLDT leads the wireless race, dominates the landline domain, operates the premiere satellite company, and has raced to the #1 position in the Internet world, both broadband and narrow band. No doubt, PLDT is set to conquer whatever the future holds for the telecommunications industry.

COMPANYS LOGO AND MEANING

This is the new PLDT logo launched during its 67th anniversary in November 1995. The new red color of the slightly revised symbol is meant to convey "energy, warmth, heart, speed and life." The borders of the old logo were removed to signify the Company's openness to change in the competitive global environment and to the transition to the next millennium.

COMPANY OBJECTIVES AND CORE VALUES

Mission
PLDT will be the preferred full service provider of voice, video and data at the most attractive levels of price, service quality, content and coverage, thereby bringing maximum benefit to the Company's stakeholders.

Objective
The Philippine Long Distance Telephone Company has constantly changed and restructured to become the leading supplier of domestic and international telecommunications services in the Philippines. With the challenges of increasing competition, the growing demand for technologically advanced telecommunications services, and the increasing telephone density, PLDT continues to expand and modernize its network infrastructure, as well as business solutions, to become a one-stop shop for all telecommunication needs from voice, video or data. Riding on PLDT's armory of strengths: industry specialists, unmatched national and global coverage, complete portfolio of networks (hybrid solutions), and network management systems (shared risks), PLDT through its PLDT Business Solutions brand has worked hard to become a stable and reliable partner of enterprises to offer Internet services, managed Internet solutions, global managed services, application and value-added services, managed access services, corporate voice, and SME bundled services. Under its wings are the PLDT Brains or Broad and Robust ATM/IP Networking Solutions.

 Intelligent network solutions PLDT Brains is the very first Cisco-powered network in the country with the whole suite of intelligent domestic networking solutions that provides companies with simple and costeffective Wide Area Network connectivity such as Domestic Frame Relay, ATM, and is the pioneer of IP VPN (Internet Protocol, Virtual Private Network) in the country. IP VPN allows users working at home or on the road to connect in a secure fashion to a corporate server. PLDT iView is a new service under PLDT Brains that essentially allows company network managers to get various reports on the performance of their network in real-time, and since it's almost an up-to-the-minute generation of the network's performance, necessary courses of action are promptly rendered. PLDT ENCOMPASS provides managed Local Area Network (LAN) solutions, together with PLDT Wide Area Network (Brains Services and Internet Services like Business DSL Services) for its clients. Remote Access Service (RAS) offers outsourced dial-up connectivity to corporate customers, giving them the ability to give their mobile workers, telecommuters, and branch offices anytime, anywhere dial-up access to their corporate network PLDT Brains' derivative industry solutions include Shops.Work, the first networking solution in the country designed for retailers. This solution links all the stores or shops of a particular company, enabling it to electronically manage business transactions. This is made possible with the use of various PLDT managed networking and managed access products such as Brains IP VPN, RAS, and DSL (Digital Subscriber Line). Another industry solution is PLDT Brains Continuum for financial institutions and large corporations that want to ensure continuous operations of their business in the event of any disaster. It provides the customer with the ability to recover from any planned or unplanned service interruptions.

 Redefining the business "As early as 1999, we have made our decision to redefine our business. PLDT does not sell networks. We sell solutions. The whole idea is to increasingly add value to our offerings. Hence, the birth of i-View and ENCOMPASS," Nerissa S. Ramos, PLDT Vice President for Business Solutions. Prior to launching the PLDT Brains solutions, Ramos added that PLDT was already offering Frame Relay and ATM to multinational companies in the early 1990s, in partnership with global alliances like WorldPartners, Equant, and Infonet among others. "Why did we start our international offering? Basically because the MNCs were the most ready to adopt these new network services. The domestic market came in three to five years later." She claimed that the global alliances prepared PLDT for the domestic offering. Surveys made with foreign partners around 1997 to 1998 also gave the company indications on the types of solutions that would be required by its clients two to three years from then. Among these solutions included IP VPN, roaming services, and customer network management tools. PLDT partnered with Fujitsu Philippines, Inc. through its networking and communications subsidiary, WeSolv Open Computing, Inc. to help put up the PLDT Brains network infrastructure "FPI has been very supportive and responsive to our needs," Ramos said. "It is a very professional company responsive to its clients needs. In a very competitive environment like telecommunications, it is very important for service providers like us to have dependable partners. FPI is one of them." "Just like most companies, whether from telecom or other industries, we were faced with challenges from our clients to help them improve their bottom line by introducing savings on telecom expenses. Pricing is always the first to be hit. However, there are creative ways of helping clients save and yet be more productive without necessarily compromising our revenues. These creative ways form a win-win environment between our clients and us." With the demanding service levels customers require from telecom carriers, PLDT has lived by the mantra of Operational Excellence, Customer Intimacy, and Product Leadership.

On Operational Excellence, PLDT is almost at the homestretch of its Data Re-Engineering Project, added Ramos. "The systems are in-place. The processes are continuously being improved through Q-life, which is an initiative aimed at making quality a way of life for everyone at PLDT." On Product Leadership, Ramos explained, "We know that the only way to survive this very competitive industry is to innovate and differentiate. Thinking out of the box is a MUST. With Innolab, product concepts can now be readily tested for fast rollout. Opening the Innolab facilities to the academe, the government, and industry partners will facilitate incubation of new ideas for quicker commercial implementation." She noted that most other carriers offer a limited number of data services. "PLDT's main competitive advantages are the full-range, as well as customized services it offers such as Shop.Work, Embed, and Resort Solutions, the vast resources it has at its disposal (manpower skills, network resources, and financial strength alike), and of course its continuous drive toward innovation by being first and best in market." Driving innovative solutions PLDT plans to continue building on its ATM/IP technology platform to offer innovative solutions to its clients. "We want to remain the first and best in the market. Innovation is also PLDT's creed and as such, we would like to be the first to know of new technological breakthroughs here and abroad," Ramos continued. In the coming years, PLDT envisions itself as the market leader in data communications, cornering approximately 62% of the market. She claimed, "Brains is and will continue to be the driver of PLDT's domestic data revenue growth in the medium- to long-term future." This vision requires a clear understanding of solutions beneficial to the marketplace. According to Ramos, service providers find themselves in a very challenging position of tying up together all players since their responsibilities are three-fold. "First of all, SPs need to understand the technology their partner vendors are offering and make the solution relevant to the marketplace," she noted.

PLDT through its Industry/ Academe collaboration is doing just that with the recently launch PLDT Innovation Challenge which will be initially opened to UP Electrical Engineering and Computer Science Engineering students. The following are the objectives of this initiative:

Enablement of homegrown concept/design/prototype of "devices/ applications" that could be used by industry (led by PLDT) for local implementation to reduce dollar-denominated technology imports and to, consequently, create a Phil-based capability to export solutions in the future (with vendors or directly by PLDT)

Improvement in the process whereby winning teams could get funding, either from PLDT or from venture capitalists, should the output from the initiative lead to commercially-viable undertaking Predicting the future In the course of managing and marketing PLDT Business Solutions, particularly PLDT Brains, one lesson Ramos concretely learned was that given the right quality of education, the Philippine market which is generally slow adapting is ready to accept the benefits of new technology " Another important lesson learned was that technology by itself, however wonderful, would not sell if not translated to actual benefits. Making solutions out of technology is a must, she emphasized. The most challenging aspect of her job, Ramos pointed out, is predicting the future needs of the country's largely price sensitive market, while developing solutions that meet these needs costeffectively. "Another challenging aspect of my job is keeping in step with technological developments worldwide and ensuring that these technologies are made available to the local market." Offering end-to-end business solutions, PLDT is maximizing the converging power of telecommunications to open windows of opportunity for various companies on how to use technology to improve their business. As a one-stop shop for business solutions, the company is continuously redefining its business to help change the way companies operate and help them become more globally competitive.

CORE Values

We take full responsibility for our actions and decisions

We do the right thing

We uphold justice and fair play

We disclose accurate and prompt information

PROCESS OF OPERATIONS
PLDT is the leading telecommunications service provider in the Philippines. Through its main business segments wireless, fixed, and others PLDT offers the largest and most diversified range of telecommunications services across the Philippines most extensive fiber optic backbone and wireless, fixed line, broadband, and satellite networks.

WIRELESS
Wireless telecommunications services provided by Smart Communications, inc., or Smart, and Pilipino Telephone Corporation, or Piltel, our cellular service providers; Smart Broadband, Inc., or Smart Broadband (formerly known as Meridian Telekoms, Inc., or Meridian), our wireless broadband provider; Wolfpac Mobile, Inc. , or Wolfpac, our wireless content operator ; Mabuhay Satellite Corporation, or Mabuhay Satellite, ACeS Philippines Cellular Satellite Corporation, or ACeS Philippines, and Telesat, Inc., or Telesat, our satellite and very small aperture terminal . or VSAT, operators;

FIXED LINE
Fixed line telecommunications services are primarily provided through PLDT. we also provide lso provide fixed line services through PLDT's subsidiaries PLDT Clark Telecom, Inc., Subic Telecommunications Corporation and PLDT-Maratel, Inc., Piltel, Bonifacio Communications Corporation and PLDT Global Corporation, or PLDT Global, which together account for approximately 4% of our consolidated fixed line subscribers.

BUSINESS PROCESS OUTSOURCING (BPO)

Business Process Outsourcing (BPO) and communications infrastructure and services for internet applications, Internet protocol-based solutions and multimedia content delivery

provided by PLDT's subsidiary of ePLDT, Inc., or ePLDT, call center services provided under ePLDT Ventus, including Parlance Systems, Inx., or parlance, and Vocativ Systems by SPi Technologies, Inc., or SPi ( consolidated on July 11, 2006) ; Internet access and gaming services provided by ePLDT's subsidiaries, Infocom Technologies, Inc., or Infocom, Digital Paradise, Inc., or Digital Paradise, Digital Paradise Thailand, Ltd., or Digital Paradise Thailand, netGames, inc., or netGames, Airborne Access Corporation, or Airborne Access, Level Up!, Inc., or Level Up!; and e-commerce, and IT-related services provided by other investees of ePLDT.

SUBSIDIARIES AND AFFILIATES

Wireless Smart Communications, Inc. and Subsidiaries Smart Broadband, Inc. and Subsidiaries Chikka Holdings Limited and Subsidiaries Digitel Mobile Philippines, Inc. Fixed Line PLDT Clark Telecom, Inc. PLDT Subic Telecom, Inc. PLDT Global Corporation and Subsidiaries PLDT-Philcom, Inc. and Subsidiaries PLDT-Maratel, Inc. Digital Telecommunications Philippines, Inc. ePLDT, Inc. and Subsidiaries Pilipinas Global Network Limited Business Process Outsourcing (BPO) SPi Technologies, Inc. and Subsidiaries SPi CRM, Inc. Others PLDT Communications and Energy Ventures, Inc.

SWOT ANALYSIS
(Strength, Weaknesses, Opportunities, Threats)

STRENGTHS
Owns top position PLDT owns the top position in the Philippines for the telecoms industry. They initially provided fixed line to the Philippine market during the early times, and have now extended their market for wireless technology. By acquiring SMART as their wireless partner, they became the number 1 provider for wireless phones. As technology continued to boom, then came the internet, which started as dial-up connection and eventually produced the broadband connection, widely known as the DSL. Then came ePLDT, which stood as the technology arm of PLDT. ePLDT gave the answer to internet problems and also took the top position. Majority of Philippine market share Having a wide range of products, from fixed line, wireless line, and internet connection, PLDT was able to capture majority of the Philippines market. PLDT holds the Philippine market for fixed line. By taking a gamble of getting SMART during the time when the GSM (Global Service for Mobile Communications) service and cellular market growth was still uncertain, they now earned the market for wireless lines, used of mobile phones, which accounts for 52% of PLDT Groups revenues. As technology was taking over the publics attention, PLDT also caught the market in broadband and narrowband internet . They launched the product Vibe for dial-up connections, and DSL for broadband connections. Industry specialists With the long history and very vast knowledge in the industry, PLDT has invested on their people. As technology becomes more sophisticated, the company provided trainings to their employees to keep them up to date with the latest technologies and be at par or better than their competitors. PLDT provides training with a trainer and by use of online materials. National and global coverage After successfully capturing majority of the market in the Philippines, PLDT decided to go global by expanding their market in Hong Kong. They launched the 1528 Smart to cater for the Filipino people in Hong Kong. This was a partnership of Hong Kong CSL Ltd and PLDT (HK) Ltd. It allows the Filipinos in Hong Kong to access Smart mobile

services and content, which includes Smart Money, Smart Load, Smart Pasaload, and Smart Padala the worlds first text-based remittance service. This also provides a cheaper rate for OFWs when they make long distance calls or send text messages to the Philippines. The cost is much cheaper by as much as 50% as compared to using foreign networks. Creative marketing strategies PLDTs marketing proved to be one of the best by continuously coming out with new ideas to capture the Philippine market. Aside from the products that they already sell to customers, they think of ways on how they can satisfy the needs of the people by providing more reasonable and affordable rates and give chance to the less fortunate to experience the new technologies available in the market. Conquering the mass market Most of the population in the Philippines represent the masses, so PLDT thought of ways to capture the mass market. With a wide range of products they can offer, they transformed them into smaller forms to make it more affordable to the majority of the public. For the fixed line, they came out with the Telesulit, which offered a prepaid version of the fixed line. This enabled PLDT to retain their customers who cannot afford the normal fixed line, and resulted to 33% more fixed line users from a year ago. For the Vibe, the dial-up internet connection service, they also offered a prepaid version, by allowing customers to purchase scratch card that contained the connection details, which only amounted to 100 and allows the customer to use 20 hours of internet. If we calculate it in a per minute basis, it only costs 8 cents per minute. Aside from the prepaid internet offered for the Vibe, it also has what they call the pay-per-surf. Using this kind of package, the customers will only pay for the minutes they use. For the wireless services, SMART introduced the Smart Load, which enabled the prepaid customers to make a reload for as low as 30 pesos (based on 2004 data).

WEAKNESSES
Customer service When PLDT launched its Vibe and DSL products, which allowed customers to have a faster connection to the internet using broadband, there were a lot of complains regarding the service provided. Much of the complaints were because of the slow connection which didnt meet the customers expectations. And that complaints made or reported were not attended at a reasonable time. This kind of situations may cause customers to decide and change their providers, who they believe are much better in providing the service needed.

Foreign Investments PLDT is very much exposed to the risk of peso weakness because 98% of its US$2.5 billion is denominated in foreign currency. Around half of the companys total debt are covered by the US Dollar, which is equivalent to around USD$351 million. The risk of the depreciation of peso is mitigated by the linkage of about 40% of PLDTs revenues to US dollar. Since about 18% of PLDTs US dollar linked revenues are from the monthly charges payable by the postpaid fixed line customers, these monthly charges may increase if the peso depreciates.

OPPORTUNITIES
Venture for new technologies Ideas of introducing a new technology to the market is a good move, especially if the product is very attracting to the public. People are very much interested for new products that are launched in the market, and how it can add do the current technology they are using. Being the very first to release a new technology will have a good chance of capturing the market sales, therefore increasing in customers and revenue. An example for this is the text messaging for mobile phones. Dropping prices of PC and laptops As more and more people are turning into the computer business, it is predicted for prices of PCs and laptops to go down to affordable prices, as other computer manufacturing companies are trying to offer lower cost for these equipments. The more affordable these electronic equipments go, the more people will be willing to purchase one. And as more computers are sold, there will be a bigger demand for broadband service. Partnership with other establishments With the internet becoming part of the everyday life nowadays, people are looking for ways to connect to the worldwide web wherever they go restaurants, hotels, shopping malls, resorts, and other public places. Having a broadband socket or hotspot in place may attract more people in choosing this certain area other than their competitors. This may result for the establishment to gain more customers and at the same time, generate more revenues.

THREATS
Fixed line market drop There are predictions that the fixed line market will drop as the future nears. With new communication technologies coming out at a very fast rate, the public are now

considering of using those new technologies that offer more comfort and convenience. Even for PLDT, who holds the market for fixed line, may be affected of this drop in sales. Industry competitors Presently, there are already different competitors providing the same services as PLDT and SMART have, not to mention other competitors that may still enter the playing field. If one of those competitors will be able to introduce a new product that may interest the public, then theres a chance that customers will consider having a deal with those competitors.

SOCIAL RESPONSIBILITIES
COMREL is the face of PLDTs Corporate Social Responsibility. Its longstanding interaction with grassroots communities, from urban communities to the far-flung rural areas across the country, make known the thrust and services of PLDT thereby realizing the convergence of business and social responsibility. COMREL establishes different corporate social responsibility programs in education, environment, health, housing and livelihood.

EDUCATION
IT started in year 2004 spearheaded by PLDT Community Relations that provides learning opportunities to high school students as well as elementary and high school teachers from across the nation by upgrading their cyber technology skills through internet basic IT education.

In 2009, PLDT together with Netopia Training Academy and IT giant Microsoft introduced the Infoteach Computer Advanced Course which provides scholars with a more in-depth IT education after which they were given the much sought after Microsoft Certificate. To date there are around 8, 000 public high school students and public elementary and high school teacher graduates.

In 2012, In partnership with University of the Philippines Open University (UPOU), Philippine Community eCenter Network (PhilCeCNet) taking Infoteach Outreach Program to greater heights covering municipalities from Luzon, Visayas and Mindanao. Using Intel curricula/modules entitled Skills for Success for high school students and Intel Teach: Getting

Started Course for the teachers. Qualified teacher graduates offered scholarships in UPOU.

PLDT-UPOU Online Teachers Development Program- Provides scholarship grants to qualified graduates of PLDT Infoteach Outreach Program enabling teachers to enroll in the Diploma in Computer Science program offered online by UPOU as priority course but can enroll in other courses necessary for their own personal growth and development. Teachers Development Program- In partnership with UPOU, DepEd and local government units of Quezon province aimed at upgrading the skills and knowledge of Science, Math and Language teachers through enrollment at UPOU. PLDT donated computers to 44 public schools in Quezon province.

eLearning Ville Program- A multi-sectoral program aimed at making a certain area of the community/town a learning hub through technology with PLDT donating computer units and facilitated provision of internet access for the establishment of a Community eCenter.

Philippine Digital Literacy for Women- PLDT, in partnership with UPOU, PhilCeCNet and Intel, provided support in the campaign to train 10,000 grassroots women by providing and mobilizing required resources. For championing Philippine digital for women PLDT and PLDT Community Relations Head Evelyn M. del Rosario were awarded special recognitions by the Philippine Community eCenter Network (PhilCeCNet).

Adopt-A-School Program - In partnership with the Department of Education (DepEd) and Philippine Business for Social Progress (PBSP) ComRel played a key role in the donation of a school building (2 storey building with 6 classrooms ) including a computer laboratory in Catmon Elementary School in Malabon called the Paaralang Laan sa Dunong at Talino in support of PBSPs Step-Up Project. This is to show PLDTs image as a community partner with a resolve in fostering education.

Brigada Eskwela Project- In partnership with DepEd, PLDT donated paints, hand wash facilities , school supplies and garden tools as well as help in repainting, cleaning and gardening (establishment of vegetable gardens) of different public schools such as Putatan Elementary School in Muntinlupa, Catmon Elementary/Integrated School in Malabon ; Catmon and Luyang Elementary School s in Carmen, Cebu; Jose Escaler Memorial School in Apalit, Pampanga and Don Vicente Rama Memorial Elementary School in Cebu City.

Telephone Courtesy Seminar- Telephone usage in the business environment, and further portray the leadership image of the Company with its premier services, a ComRel public awareness program for its key business clients.

Donation of personal computers- Old and new computers donated to various public schools, NGOs, poor communities and municipalities in Luzon, Visayas and Mindanao

ENVIRONMENT
PLDT TELEpuno tree-planting In partnership with the Department of Environment and Natural Resources (DENR), Philippine Business for Social Progress (PBSP), Multi-Sectoral Watershed Management Council, Inc. (MSWMC) and the local government of Infanta and Real, Quezon. Launched during the 80th anniversary of PLDT , a 5-year tree-planting program of 80,000 seedlings to regenerate the natural ecology of the 80 hectares of Infanta-Real Quezon watershed forest reserve. Benefited at least four peoples organizations with 80 farmers. In time for PLDT Chairman Manuel V. Pangilinans 66th Birthday in 2012 ComRel spearheaded the PLDTs 66K M.V.P. (Movement for Volunteerism and Partnership) Trees environmental greening project aimed at planting 66,000 trees participated in by MVP Group of Companies with areas of Benguet, Pampanga, Bulacan, Marikina, Iloilo, Cebu and Davao covered.

River Clean-up and Mangrove Reforestation in Iloilo City- In partnership with the City of Iloilo,

PLDT employee volunteers did the clean up in the Iloilo River and planted mangroves.

Shore it Up: Rescue, Restore, Revive environmental awareness program- Supported the Metro Pacific Investments Corp. (MPIC) covering environmental stewardship talks, treeplanting, coastal and underwater clean-up and artificial reef replacement.

Highway Clean-up Drive for Tirona Highway in Bacoor- In partnership with the municipality of Bacoor, PLDT supported the Highway Clean-up Drive for Tirona Highway in the town together with the Municipal Environment and Natural Resources Office (MENRO).

The 1st Philippine International River Summit - PLDT was a co-presentor during the event held in Iloilo City and joined the environmental exhibit during the summit.

26th International Coastal Clean Up- Trash Free Seas- In partnership with DENR the PLDT Employee Volunteers help clean the shore of Las Pias Paraaque Critical Habitat Eco-tourism Area (LPPCHEA).

PLDT-Motolite-PBSP BalikBaterya Program- Involves donation of used lead-acid batteries (ULABs) generated funds to support its CSR Projects. PLDT, so far, has the most number of tons of ULABs donated to the program. Properly recycled and hazardous waste disposed from the ULABs, the proceeds of the sale of these ULABs are used to fund urban renewal, environment as well as educational and health needs of underprivileged communities. As a result of the program, PLDT was able to fund and build 23 learning resource centers in the Visayas benefitting 23 public schools in remote areas in Bohol, Samar, Iloilo and Cebu. In Balungao, Pangasinan, typhoon-damaged classrooms of Mabini and Esmeralda Elementary Schools were repaired. In its support to IT in education, PLDT has established computer laboratories in Barobaybay Academy Mission School in Samar and Malabon National High School-Longos Annex in Malabon. The funds also constructed roads, drainage, and alleys for flood-prone areas in Malabon benefitting a total of 1,000 residents. PLDT also held orientation sessions for TB

awareness and prevention in Pasig, Caloocan, Quezon City and Bulacan educating 1,788 individuals and training 127 TB educators. PLDT ensures that these projects were implemented in coordination with LGUs, NGOs and other stakeholders.

For 2012, PLDT has donated 144 tons of used-lead acid batteries (ULABs) amounting to Php3.12 million. To-date, PLDT remains to be the programs biggest donor 964 tons of ULABs amounting to Php20.12 million. PLDT Balik Baterya funds reforested 13 hectares of the Montalban-Wawa Sub-Watersheds in Rodriguez, Rizal. Four classrooms were also turned over in Northern Samar, benefiting Bangkerohan and Nenita I Elementary Schools. These projects are part of PLDTs 26 completed/ongoing projects.

EMERGENCY RESPONSE
Relief operations, medical and dental missions, and feeding programs to calamity victims in Luzon, Visayas and Mindanao.

HEALTH
PLDT medical and dental missions - Free medical and dental services and medicines for the victims of calamities and disasters, impoverished constituents of various municipalities as well as indigenous minority groups.

Bloodletting Dugong Alay Katumbas ay Buhay and Dugong PLDT campaigns In partnership with Philippine Childrens Medical Center (PCMC) and Philippine National Red Cross, PLDT employees from various offices donate blood in support to Department of Healths (DOH) campaign of providing safe blood to those in need.

Feeding program - Part of PLDTs efforts to promote nutrition among the marginalized families in different communities nationwide and also to help those victims of calamities.

HOUSING
Thru Gawad Kalinga, PLDT financed housing projects and PLDT employee volunteers helped in the construction of houses. PLDT also donated sewing machines in Sooc, Iloilo in support to their livelihood projects.

LIVELIHOOD
Donation of old directories to inmates of Female Dormitories in Camp Karingal, Quezon City; and Inmates Welfare and Development, Quezon City Jail used in making baskets, decorations, etc. PLDT TELEpuno Livelihood component now in its 5th year of implementation to assist the rehabilitation of the Proclamation 158 Infanta-Real Watershed in the boundaries of Infanta and Real in Quezon; providing alternative livelihood initiatives to its partner-communities within the watershed forest reserve in cooperation with PBSP. A community livelihood assessment was conducted in the communities prior to the turnover of the livelihood projects.

- Construction of fish nursery providing 5,500 pangasiusfrys and juvenile fish to the Samahan ng Mangbubukid sa Barangay Cawayan (SMMBC)

- KILOS, another partner-womens organization with 30 members from Barangay Gumian, Infanta, Quezon; providing four (4) hi-speed electric sewing machines in support of its Eco-Bag Project, as well as re-used and recycled bag materials sold cheaply at the community market.

- KANLUNGAN, a farmers organization from Barangay Magsaysay comprising of 80 members; given one-day training on vermi-compost production at PBSPs Center for Rural Technology and Development (CRTD) with local government employees assigned at the Municipal Recovery Facility (MRF) of Infanta, Quezon.

Trainings on cellphone repair, PLDT card sales, manicure, pedicure and soap making PLDT provided trainings to different poor communities and victims of calamities.

Donation of Potable Water System in Arakan Valley- PLDT donated potable water system for the communities in Sitio Enamong Datu Ladayon, Arakan Valley, North Cotabato . The PLDT employee volunteers helped in the installation of the water system.

AWARDS AND ACHIEVEMENTS

PLDT has consistently been awarded and recognized for its Corporate Governance initiatives. These serve to inspire PLDT to move on and move further with the knowledge that good governance is essential in achieving sustained growth and profitability, with full trust in the inherent worth of the principles of accountability, integrity, fairness and transparency. These serve as the foundation by which PLDT continually strives to create value for its shareholders, serve its customers, and conduct itself responsibly for the good of all its other stakeholders. 2013 Corporate Governance Asia Icon on Corporate Governance Asian Corporate Director Recognition Award for Mr. Manuel V. Pangilinan, Chairman of the Board Readers Digest Platinum awardee- Phone Service Provider on Landline and Internet Service Provider for myDSL

2012 Finance Asia Best Investor Relations (1st) Most Committed to a Strong Dividend Policy (1st) Best Corporate Governance (4th) Best Managed Company (7th) Best Corporate Social Responsibility (9th) Institute of Corporate Directors Gold Awardee Corporate Governance Scorecard Southeast Asia Institutional Investor Corp.

 Best Senior Management IR Support (3rd) Most Consistent Dividend Policy (2nd) 2011 MEF Carrier Ethernet Service Provider Awards

Finance Asia Best Corporate Governance (1st) Best Managed Company (1st) Best Investor Relations (1st) Most Committed to a Strong Dividend Policy (1st) Best Corporate Social Responsibility (1st) Best Chief Executive Officer (3rd)

FINANCIAL STATEMENTSCOMPARATIVE

COMMENTS, SUGGESTIONS AND FINDINGS TO THE COMPANY

FINDINGS
Philippine Long Distance Telephone Company (PLDT) together with SMART is currently the countrys leader in the telecoms industry. The company is well known to the different services they rendered and also to its products which continues to spread in the country. Although thats the case now, we may never know when one of their competitors will suddenly go pass them or when a new competitor will come in to play. Without proper and well-planned short term and long-term strategies the company could lose its position in the market. As with their current products, they are currently the leader. But PLDT should not just reply on what products they have now or the scope of market they have. PLDT should also consider widening their span of customers. Having more opportunities of getting more customers to buy their products, the more they have the chance to make their profits grow. When they earn much more, the company will be able to plan for more programs or projects may result to more expansion or introduction of new products that may capture the publics attention. In order to continue and secure their market position, PLDT would need to make the necessary means to make their customer always satisfied with their products and the services that they provide. SUGGESTIONS

The group believes that in order for PLDT to succeed in the competitive world of telecoms, they must focus on three aspects: customer service, new technology introduction and expansion of current products. The most important of these aspects is the customer service. Before the company can even do expansions or introduce new products, they should first evaluate and improve their current customer service. Customers will not continue with deals with PLDT if they dont get enough support in cases they encounter problems with their products. To get retain the loyalty of the customers, the company should provide a better quality of a service. When this aspect is stable, PLDT can now do the expansion of its products. PLDT has not penetrated most areas in the country for their broadband services. With the ongoing positive trend for broadband, they should explore untapped markets and region to generate more profit and sustain their leadership in the telecom industry. This move can give PLDT more customers from other provinces of the Philippines. But it is important for PLDT to put up a strong infrastructure of expansion as not to get bad criticisms, especially from the new customers. In time, PLDT can also consider offering an edge over the others and bring customers satisfaction to a new level by improving their customers experience and offering something new. People of this generation are very much interested in new products and technologies. They always aim for new things and ideas that can help make their lives easier. Being the first one to introduce something in the Philippines will help them catch majority of the market. But in implementing these suggestions, PLDT should consider their budget. They should plan every idea carefully that they have a proper funding to complete the whole project. The company should look at all possible options and risks that may negatively affect them before finalizing any decisions.