The Philippine subsidiary of China Telecommunications Corp. may treble its subscriber base this year, putting it on track to secure a third of the country’s communications market by 2024.
According to majority investor DITO CME Holdings Corp., DITO Telecommunity Corp.’s subscriber base might grow to around 10 million from 5.3 million at the end of last year as the firm improves network coverage.
DITO CME President Eric Alberto said in an interview that the business believes it can attract users to its entirely 4G and 5G network and that it wants to avoid a pricing war with larger domestic rivals Globe Telecom, Inc. and PLDT, Inc.
Mr. Alberto stated, “Everyone who needs a mobile phone already has one.” “All we’re doing is upgrading to a more advanced digital capability.”
Mr. Alberto predicts that the company will accomplish its objective of 30 percent market share in 2024, when its network coverage will have increased to more than 80 percent of the population, up from 52.8 percent last year.
According to Joseph John Ong, chief finance officer of DITO CME, which is undertaking a stock rights offer, the company is “down to the wire” in terms of acquiring long-term credit to cover a $5 billion five-year investment commitment to expand its network.
Based on their shares in the unit, the business and China Telecom, which owns 40% of DITO Telecommunity, will guarantee the loan.
Mr. Alberto estimates that the telecom company will be profitable in three to five years. In comparison to rival carriers’ companies, other units such as marketing firm Global Acuity and analytics solutions provider Unalytics may require less time to make major earnings contributions, he said. — Bloomberg