More Filipinos preferring prepaid mobile services: telco execs
To maintain their mobile phone habits during the previous increases in consumer prices and as an economic slowdown looms ahead, Filipinos have been turning to value-for-money services, executives of phone companies said.
This trend in consumer behavior spans both text messages and phone calls exchanged by more than 50 percent of the Philippines’ almost 90 million population.
According to Ramon Isberto, the spokesperson of local phone operator, Smart Communications, they have observed that the ratio of prepaid mobile phone users against their current 34.2 million subscribers as of September has been on an uptrend.
Isberto told ABS-CBN News that in the January to September period, the share of usage by prepaid mobile phone subscribers already account for 50 to 60 percent of the company’s total revenues.
In the same period in 2007, prepaid users accounted only for 40 percent.
Prepaid mobile phone users have no base monthly service payments but could top up their phone credits depending on their phone service usage.
“When times are hard and people have to stretch their budget, people really look for phone services that they consider value for their money,” Isberto said.
One Smart phone user told ABS-CBN News that he finds prepaid mobile phone service “more affordable.”
“My P100 [phone credits] last for 4 to 5 days,” he said.
Prepaid mobile phones, which were introduced in the country in 1999, have been a popular entry point of Filipinos who would like to communicate with those in the country and to relatives working abroad, but have no means or are not keen on presenting documentary requirements, including income sources, to avail of post-paid mobile phone services.
Prepaid SIMs are available for as low as P40, and consumers have an array of text and call promotional packages to choose from.
Fierce competition among Philippine-based local mobile phone companies, such as Smart, Globe Telecoms and Digital Telecommunications, has led to innovative yet profitable sachet and niche services affordable to a wider number of Filipinos.
Prepaid subscribers can even avail of electronic top ups and share phone credits that cost as low as P2.
According to Sun Cellular, the mobile phone brand of Digital Telecoms, Filipinos reacted favorably to their low-cost packages and other marketing perks.
Joan Duenas, Sun Cellular’s assistant vice president for prepaid marketing, said that that their unlimited texting packages are the most popular among prepaid users.
Duenas said that, “Consumers prefer those that allow them to load daily.”
She added, however, that “Consumer also like to call and not just send text messages.”
Sun Cellular, the country’s third largest mobile phone services provider with almost 5 million subscribers, has been focusing on being the second or third mobile phone of consumers who are already subscribers to either Smart or Globe.
It has been giving away free phones and even DVD players to attract more Filipinos to sign up with them. – with report from Michelle Orosa, ABS-CBN News