In a virtual briefing, Cu believed the Globe-PLDT rivalry would persist despite the entry of a third telco player for two reasons – the sheer size advantage of the two giants and what he believed as the dirt cheap prices in the mobile market.
“On the mobile side, competition will remain pretty much the way it is…we are not yet seeing the effect of Dito. Let’s see what happens in March when they launch, supposedly, commercially. They have 1,800 sites, as they say, and close to 11,000 each to the two incumbents,..let’s see how that works,” said Cu.
Cu is skeptical that Dito would travel the same road taken by Sun Cellular of the late bilyonaryo John Gokongwei which shook up the cellular phone market with an intense price war in 2003.
“Probably there won’t [be a price war] given the fact that prices are very low. It’s very difficult if you don’t have scale and you will come in at low prices, then your profitability and viability will come into question. But we don’t know what their strategy will be,” said Cu.
But whatever Uy does, Cu said Globe would be ready.
“For PLDT and Globe, you have seen the mode of competition has become quite stable. There have been occasional marketing spikes like what we are having now with Korean talent flowing in the market (Globe has Blackpink while PLDT-Smart has BTS). We had an in increase in data allocation at the beginning of the pandemic and the stability thereafter,” said Cu.
“So we’ll see how they play the game. All I can say is that we will have a commensurate reaction to whatever aggression they bring to the market,” he added.