Jun. 8--The National Statistical Coordination Board (NSCB) earlier reported that consumer spending in the first quarter slowed down to 0.8 percent from 5.1 percent a year ago, leading the overall economy to barely grow at 0.4 percent from 3.9 percent last year.

Despite their resilience, overseas Filipino worker (OFW) remittances failed to entice consumers into spending during the period, resulting in a modest growth of 6.4 percent in the telecom sector, from 4.4 percent last year.

Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom Inc., in the first quarter registered slower growth, but distant third-ranked Digital Telecommunications Phils. (Digitel) Inc. recorded a 36.3 percent in revenues driven primarily by its wireless segment.

James Go, Digitel president and chief executive said his company is the fastest growing telco in the country in percentage terms and in absolute numbers.

"We will overtake other network in postpaid [segment] within the year," Go said, adding that Digitel has a total of 700,000 postpaid subscribers. Rival Globe, the leading operator in postpaid had 751,944 subscribers, while Smart Communications Inc. of PLDT, 407,464 subscribers.

Charles Lim, Digitel's business unit head for wireless, said the economic crisis has forced people to think of value for money.

Asked if other operators' subscribers migrating to its network, Lim said, "I'm sure they [subscribers] are coming from them," referring to Globe and Smart.

"We are gaining [from the current economic difficulties]," he said.

Sun Cellular, the cellular brand name of Digitel pioneered the 24/7 intra-network unlimited wireless service by introducing 24/7 Call and Text Unlimited (CTU) and 24/7 Text Unlimited (TU).

The company expects its subscriber base to grow to about five to six million by end of the year.

Tight competition pressures Globe

This puts pressure on Globe, as its president, Ernest Cu, admitted the company suffered a decline in subscribers for its postpaid segment.

Cu blamed this primarily on the cut back in telecom expenses among companies, adding the export sector such as semiconductors and automobiles cut down their staff.

The postpaid segment has a bigger average revenue per user (ARPU) than prepaid at P1,389 and P192, respectively, at end-March.

Globe's postpaid subscribers' additions in the first quarter dropped 145 percent to 1,831 from 4,026 in the same period last year.

Given the company's dilemma, Cu said Globe will focus on enhancing its services, strengthening its brand propositions and product offers to compete effectively in this highly demanding and competitive market.