Philippine Long Distance Telephone Company
|This article needs additional citations for verification. (March 2013)|
|Traded as||PSE: TEL
|Founded||Manila, Philippines (1928)|
|Headquarters||Makati City, Philippines|
|Manuel V. Pangilinan, Chairman
Napoleon L. Nazareno, President and CEO
|Revenue||PHP 40.96 billion (2013) |
|PHP 9.187 billion (2013) |
|Total assets||PHP 407.046 billion (F1 2013) |
|Total equity||PHP 130.40 billion (F1 2013) |
Number of employees
|36,740 (2013) |
|Slogan||We're Changing Lives|
The Philippine Long Distance Telephone Company (Filipino: Kompanya ng Teleponong Pangmalayuan ng Pilipinas; PSE: TEL, NYSE: PHI) commonly known as PLDT, is the largest telecommunications company in the Philippines. The latest service revenues reported for the nine months ended September 2013 rose by PHP 2.6 billion or 2% year-on-year to PHP 121.6 billion, with net income rose by PHP 600 million or 2% to PHP 29 billion simultaneously.
PLDT was established on November 28, 1928, by an act of the Philippine legislature and approved by then Governor-General Henry L. Stimson by means of a merger of four telephone companies under operation of the American telephone company GTE. Known as Act 3436, the bill granted PLDT a 50-year charter and the right to establish a Philippine telephone network linking major points nationwide. However, PLDT had to meet a 40-day deadline to start implementing the network, which would be implemented over a period of one to four years.
By the 1930s, PLDT had an expansive fixed-line network and for the first time linked the Philippines to the outside world via radiotelephone services, connecting the Philippines to the United States and other parts of the world.
Telephone service in the Philippines was interrupted due to World War II. At the end of the war, the Philippines' communications infrastructure was in ruins. U.S. military authorities eventually handed over the remains of the communications infrastructure to PLDT in 1947, and with the help of massive U.S. aid to the Philippines during the 1940s and 1950s, PLDT recovered so quickly that its telephone subscribers outpaced that of pre-war levels by 1953.
On December 20, 1967, a group of Filipino entrepreneurs and businessmen led by Ramon Cojuangco took control of PLDT after buying its shares from the American telecommunications company GTE. The group took control of PLDT's management on January 1, 1968, with the election of Gregorio S. Licaros and Cojuangco as chairman and president of PLDT respectively. A few months later, PLDT's main office in Makati City (known today as the Ramon Cojuangco Building) was opened, and PLDT's expansion programs begin, hoping to bring reliable telephone services to the rural areas.
PLDT was permitted to operate during Martial Law. During the 1970s, PLDT was nationalized by the government of then President Ferdinand Marcos and in 1981, in compliance of then existing policy of the Philippine government to integrate the Philippine telecommunications industry, purchased substantially all of the assets and liabilities of Republic Telephone Company, becoming the country's telephone monopoly. Under this monopoly, service expansion were severely curtailed or practically nonexistent. In the Martial Law years people would apply for phone service only to wait for years and years on end behind an impossibly long application backlog. It is not unheard of for people and small businesses back then to barter for a single telephone line in the black market for tens of thousands of pesos. The incumbent Prime Minister Lee Kuan Yew of Singapore referred to the situation when visiting the Philippines during the term of President Fidel V. Ramos. He said, albeit in jest, “In the Philippines 95% of the population has no telephone, while the remaining 5% are waiting for that dial tone.”
In 1986, after President Marcos was overthrown, the company was re-privatized as Ramon's son, Antonio "Tonyboy" Cojuangco assumed post as PLDT chief. By 1995, with the passage of the Telecommunications Act and the subsequent deregulation of the Philippine telecommunications industry, the company has been de-monopolized. Later that year, Hong Kong-based First Pacific Company Ltd. acquired a 17.5% stake in PLDT making it the majority owner of the conglomerate. The company's CEO Manuel V. Pangilinan became the new conglomerate's President replacing Cojuangco, who assumed post as Chairman until 2004, when Pangilinan became his successor.
In 1998, MediaQuest Holdings, Inc., a wholly owned subsidiary of the PLDT Beneficial Trust Fund, acquired Nation Broadcasting Corporation from the joint consortium of the Yabut family and real estate magnate Manny Villar.
9 years later, in 2007, MediaQuest bought the shares of GV Broadcasting Systems, a licensed direct-to-home (DTH) satellite television provider from Satventures Inc. of the Galang family. With this, GV changed its corporate name to MediaScape Inc.
PLDT acquired 51.55% of the shares of Digital Telecommunications Philippines from JG Summit Holdings on March 2011 with the cost of P69.2 Billion PHP. Because of this, the shares of Digitel and JG Summit in the PSE surges while PLDT's shares remained unchanged. In the deal, JG Summit will have a 12% share in PLDT. It was finalized by the National Telecommunications Commission on October 26, 2011.
Twenty percent of Meralco shall be sold to PLDT, according to the Lopez family who owns the Philippine's largest electric distributor on March 13, 2009. The deal is set to be done in the third quarter of 2009 with the cost of 20 billion pesos. The said action was done to prevent the hostile takeover of San Miguel Corporation, which already owns a large portion of Meralco.
The Company's ownership is divided among the Public (53.86%), some private corporations including the Philippine Telephone Investments Corporation (12.05%), Metro Pacific Resources, Incorporation(9.98%), Non-Philippine subsidiaries of First Pacific Company Limited (3.54%), NTT DoCoMo, Inc. (14.5%), NTT Communications Corp(5.85%) and businessmen Manuel V. Pangilinan (0.11%).
Subsidiaries and affiliates
PLDT's main competitors are Globe Telecom in both the fixed-line and mobile (via Smart's competition with Globe and Sun Cellular) markets, as well as Bayan Telecommunications (BayanTel) who is also a major fixed-line provider. However, internet speed still remains slow in the midst of weak competition.
- "PLDT Financial Information" (PDF) (Press release). 8 May 2013. Retrieved 19 June 2013.
- Maligayang Bati Sa Iyo. Liwayway (Christmastime magazine advertisement) XII (5) (Manila: Ramon Roces Publications, Inc.). December 10, 1937: 100.
- Quarter Report
- PHILIPPINE LONG DISTANCE TELEPHONE COMPANY retrieved May 7, 2013
- "PLDT-Digitel mega-deal violates law | Inquirer Opinion". Opinion.inquirer.net. 2011-05-27. Retrieved 2013-09-14.
- Eaton, Kent (January 2008). "Politicians and Economic Reform in New Democracies: Argentina and the Philippines in the 1990s". ISBN 0271045841.
- "History". PLDT. Retrieved 2013-09-14.
- "Business - Lopezes to sell 20% of Meralco to PLDT - INQUIRER.net". Business.inquirer.net. 2009-03-14. Retrieved 2013-09-14.
- "100 Top Stockholders as of December 31, 2013". PLDT. Retrieved 2014-03-09.