The “landline landslide” over?

Bayan set to revitalize the landline industry
December 19, 2007, 8:00am

Maverick telecommunications company Bayan Telecommunications (Bayan) estimated that the performance of its wireless landline business is set to revitalize the landline industry with a projected 10 to 15 percent annual growth rate in subscribers within the next two years, reversing a trend of negative growth in 2006.

According to Frost and Sullivan’s Asia Pacific Residential Voice Market study released in June 2007, the Philippine landline subscriber base witnessed negative growth for the first time in 2006, mirroring the trend of the rest of the world. As more people opt for mobile phones as their primary mode of communication, the study showed that the residential landline subscriber base has a negative CAGR of 3.3 percent.

The study also cited that revenues derived from the traditional residential fixed line market is estimated to dwindle rapidly at a negative CAGR of 7.8 percent over the period 2006-2013, and more and more operators are focusing on offering data services to augment their voice revenues.

But the performance of Bayan’s wireless landline service defies industry trends, as it is set to end the year with 100,000 landline subscribers, effectively invigorating by 30% Bayan’s landline subscriber base.

"The success of Bayan wireless landline is proof that there is significant demand for basic voice services. This is deeply ingrained in the Filipino psyche of wanting to always keep in touch with family and friends through talking and not just sending SMS messages. We know that the traditional landline is still the most efficient way of communication, but Bayan wireless landline adds the mobility feature which people now expect from their communication device," said Bayan Chief Executive Consultant Tunde Fafunwa.

"Contrary to conventional wisdom, 80% of our subscribers still prefer traditional desktop units which only underscores that, with the right technology such as our wireless landline, people can rekindle their affinity for landlines. Just when everyone thought the landline has spiraled downward to insignificance, it has proven to be useful once again."

Anyone who’s been to a mall or coffee shop lately is sure to have seen more and more people carrying around wireless landline units. Absurd and bizarre at first glance, this is the best sign that the wireless landline has been reborn and refreshed to be enjoyed and loved by the mobile generation.

As Bayan’s flagship product, BWL’s revolutionary turnaround of the landline industry mirrors the company’s refreshed and revitalized brand identity. Bayan has recently aggressively gone to market with a new look, a fresh perspective on customer service, and a relentless commitment to useful technology.

"The expected sustained growth of the landline industry is a fulfillment of the government’s and National Telecommunications Commission’s vision to improve telephone density in the country through affordable and relevant technologies," said Fafunwa.

"More meaningful for us, it is the realization of our founder Eugenio Lopez’s vision for Bayan Telecommunications—to connect every Filipino with each other. With BWL, we’re giving Filipinos their voices back."