Critical Success Factors

STEP-C

Weight

Opportunities
The National Telecommunications Commission
has given Philippine Long Distance Telephone
Political,
Co. (PLDT) 13 more years to operate and
Governmental 0.05
maintain a terminal of the Asia-America
Gateway (AAG), a $550-million submarine cable and Legal Forces
system that connects Southeast Asia and the
US.
Fast forward to the present, and we have
Facebook being used by more than 25 percent
of the population ranking 8th in the world,
Social
0.1
while other social media networks (such as
Twitter) are rapidly growing in popularity.
The Philippines telecoms market is somewhat
limited by low consumer incomes. However,
with large subscription growth opportunities,
operators continue to grow rapidly, as their
strategies remain focused on building
subscriber bases.

Rating

Weighted
Score

0.2

0.4

Economic

0.1

0.4

Companies developing tech-based solutions for

consumers in emerging markets see great
opportunities in the Philippines today.

Technological

0.05

0.2

High tech companies are also jumping into the

fray. Some companies have started by
incorporating environment-friendly materials in
their next line of products, such as Apples leadfree devices and Samsungs energy-efficient
home appliances. In some cases, they utilize
alternative energy sources for their operations.

Environmental

0.1

0.3

Experts from the media, business, and digital

industries gave relevant insights on how digital
innovations have greatly affected peoples daily
activities.

Social

0.025

0.1

The National Telecommunications Commission

said the two biggest telcos passed the Quality
of Service Benchmarking Tests the industry
regulator staged in 17 cities in Metro Manila
Political,
during the second quarter. The results reflected
Governmental 0.025
on the respective network performance of
and Legal Forces
Smart Communications Inc. and Globe Telecom
Inc. Both telcos recently completed their
respective modernization and transformation
programs.

0.1

In the Philippines, recovery in exports and

expanded private consumption and investment
generated gross domestic product (GDP)
growth of 6.0% in the first half of 2014.

Economic

The Philippines is widely recognized as the 'text

messaging capital of the world'. Needless to
say, efficient text messaging service is highly
important to the lives of Filipinos.
Filipino leaders in the telecom field say more
and more companies have moved on from
merely talking and feeling good about their
efforts toward society and environment and
into embracing these in their business
strategies.
Threats
Globe Telecom of the Ayala Group expects to
complete
its
takeover
of
Bayan
Telecommunications Inc. within 2014 as it
remains confident that it has cleared regulatory
hurdles.
The Philippines is the country with the slowest
connection and poorest coverage of LTE in the
world, a phone application that measures
internet speed said in a report.
PLDT-Smart brands draft NTC-IP peering policy
as unconstitutional.

0.1

0.2

Technological

0.025

0.1

Social

0.025

0.05

Competition

0.05

0.15

Technological

0.05

0.15

0.05

Political,
Governmental 0.025
and Legal Forces

The state of the Philippine Internet is lackluster

compared to quite a number of other countries
in the world, partly because of a costly speedto-price differential and partly because our
speeds do not stack up to the global average.

Economic

0.05

0.15

Globe continuously works on ways to limit the

impact of any disruption in its operations
especially during calamities. It has a business
continuity management policy in place which
prioritizes the safety of the people and ensures
the delivery of products and services even
during disasters.

Environmental

0.05

0.2

Social

0.025

0.1

Technological

0.025

0.05

The Philippines long had a terrible reputation

for telecommunications.
Damaged submarine cables connecting 9
countries including the Philippines to the
rest of the world online are causing issues for
many Internet Service Providers (ISPs) locally
and in the region.

Regulator National Telecommunications

Commission (NTC) has come up with the low
down on which of the top telcos Smart
Communications Inc. or Globe Telecom Inc.
offers better service to its tens of millions of
customers. The results prompted Globe and
Smart to slug it out in a war of words using the
media to mirror their best side for consumers
to see. Both telcos have spent and are still
spending tens of billions of pesos to upgrade
and modernize their respective networks.

Political,
Governmental 0.05
and Legal Forces

0.2

Globe Telecom's credit rating from Fitch steady

and stable

Economic

0.025

0.025

GLOBE Telecom further strengthens its

environmental advocacy through a partnership
with World Wildlife Fund (WWF)-Philippines,
starting with a donation of P1 million to WWFs
Philippine Fund for Nature and a possible
collaboration on eco-tourism using Globe
GCASH.

Environmental

0.05

0.15

TOTAL

3.275