This program started during 2003 to improve the livelihood of many Filipinos amidst globalization and economic source of substinence. Over the years, mobile subscribers increased due to a cheaper and more practical source of communication to their love ones and everyday communication. Some household families would even buy a prepaid load for their cellphone rather than a subscription to a landline unit or subscription plan directly from Telcos players. Prepaid load became very successful because it is very economical and efficient use of resources.
The concept behind prepaid load versus a subsription plan has something to do with the proper use of resources. If a household member would only use a 200Php load or less per month, isn't it much practical to get a prepaid subscription rather a plan which would give you a unlimited text and calls but going to be limited to the extent of your usage. Using your economic resources more efficiently will increase free economic resurces that can can still be use for other daily consumption. Today the cheapest subscription plan would land on 250Php.
The substantial reduction of margins that started last 2012 from Smart, Globe and Sun was a detrimental loss to the load retailers causing them to impose additional charges to their customers.
According to Malaya press:
"Last 2012, the telcos reduced retailers’ margins twice. For Smart retailers, earnings were reduced to 9.2 percent from 10 percent; for Sun Cellular from 13 percent to 11 percent while Globe Telecom Inc., 9.4 percent from 11 percent .
In a joint statement, Smart and Sun said adjustments in the retail margins will be more than made up and offset by new load-based products.
Retailers can also sell loads to prepaid cable subscribers of Cignal Satellite TV, and to prepaid electricity users of Manila Electric Co.
Retailers can also earn by becoming new payment platforms to government services such as GSIS, SSS and PhilHealth using the load wallet.
Smart and Sun Cellular said the surge in usage of subscribers would also make up for the reduced margins through their brand new call, text and data promos."
In the first quarter this 2013, redcution in profit margin continued: Earnings of Smart retailers were reduced by 1.8 percentage points, from 9.2 percent to 7.4 percent while those of Sun Cellular retailers went down by 2 percentage points from 10 percent to 8 percent. Globe retailers will have 1.9 percentage points less in share from 9.4 percent to 7.5 percent. (Malaya Press)
Ailing load retailers is passing additional charges to end-consumers because profit margins were substantially reduced. In a way, it may worsen the economic performance of our country. These small load retailers might resort to illegal economic activities because it can no longer give enough livelihood or support for their families and love ones.
Telcos players must look for another business opportunities that only them can do because these small load retailers might not have the financial capability to venture into a more profitable activity requiring bigger capital.
The economic scene in the Telcom large players and small load retailers in the Philippines would seem like predators eating their own preys. This is not a good business practice and it is very detrimental to the economy of the Philippines.
No comments:
Post a Comment