BAYANTEL’S FLEXIBLE INNOVATION TAPS NICHE MARKET OPPORTUNITIES
An aggressive growth strategy has resulted
in new partnerships along with high-tech upgrades
to break ground in expanding markets
The history of BayanTel closely embodies what Chief Executive Consultant Tunde Fafunwa describes as "the Filipino ability to survive, adapt, and be flexible". Soon after its founding in 1993, BayanTel faced challenges similar to those of other fixed-line companies in the evolving world of wireless and cellular communications. Unlike many of its peers, BayanTel adapted to the new environment, and today boasts a 33 percent market share covering approximately 25 million customers. Its international business has expanded to include a partnership with AT&T that, among other things, supports the Philippines' thriving business process outsourcing (BPO) industry and communications between the large number of US-based Filipinos and their contacts back home.
BayanTel's success stems in large part from its ability to innovate. Its extensive infrastructure, WiFi, and broadband, is already helping it to carve out a niche in the Philippines' fast-growing BPO industries, where both information and communications technology are crucial.
Banking on net revenue estimated to have reached $120 million last year, up from an original target of $110 million, the company is working on an aggressive growth strategy. This growth will build on nearly $30 million worth of recent upgrades that improved network infrastructure, including the digital fiber optic National Digital Transmission Network. Other major investments are set to expand company's capacity too. In August 20, BayanTel signed an agreement with Sweden’s Ericsson that will provide the Manila-based company with Ethernet DSL Access solutions. Meanwhile, in December 2006, BayanTel deployed cutting-edge EFMplus high-speed internet technology developed by Israel-based Actelis Networks.
The company is cognizant of niche market opportunities, like those catering to the Filipino diaspora and tech-savvy customers. Look at the market for communications between overseas Filipinos and their Philippine-based contacts, BayanTel has develop the Family Ties program, which offers a yearly flat-rate phone plan for international calls.
Aiming to break ground in up-and-coming industry, BayanTel expects to enter the market for internet-based TV. As Fafunwa comments: "If you look at what is available over the internet, like user-generated content and communities being able to pay for the content they want, you can see that the whole broadcasting model is changing.”
BayanTel is dedicated to corporate social responsibility (CSR) too. Mr. Fafunwa points that one of the most exciting CSR areas for company is an initiative dubbed GILAS, or Gearing up Internet Literacy & Access for Schools. It has participated in the program for two years, and significant progress has been made toward its goal of providing internet access to all Philippine high schools.