Business Feature On Telecom Giants: Globe And Smart

The two have been cited in a survey conducted by BizNews Asia last October as one of the top companies in the country, with Globe placing 13th and SMART ranking 22nd.

Globe ranks ninth in the top ten biggest profit-makers, making P4.31 million out of its total revenues of P35.40 billion last 2000.

Its return on sales (profits as a percentage of revenues) also amounted to 12.16% last 2000.

Smart Communications, meanwhile, made P3.85 out of the total revenues of P24.97 billion, giving the company a 15.49% return on sales.

The expanding profits could be attributed to the country's cellular phone mania.

In the past three years, voice has become more and more wireless, which is in turn caused by people's changing lifestyles. Since people are out of their homes, most of the time, the best way to reach them is through their cellular phones.

Mobile phones thus fast became a kind of necessity, with more people preferring them to fixed lines.

Another innovation which seems to have brought about this preference for mobile phones is the short message service (SMS), more popularly known as "text messaging."

A few years after its introduction, the number of messages sent by cellular phones subscribers in the country was estimated to be at 30 million a day. This transformed the Philippines into the "texting capital of the world" and has earned GSM networks, particularly Globe and Smart, a gargantuan amount of money.

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