Dito to expand to postpaid, enterprise biz to reach profitability
MANILA, Philippines — Dennis Uy-led Dito Telecommunity Corp. bared plans it would be expanding into the postpaid and enterprise segments to send them into cash-flow positive territory.
In a briefing on Thursday, the country’s newest telco player bared scant details about this offering, which will be launched in June. Dito said they can use the weight of their partnership with state-owned China Telecom Corp.
“We leverage as our partner China Tel, some best phones are being manufactured in China. We will leverage the relationship, hopefully we can offer cheap phones to the public for our postpaid push,” said Adel Tamano, company chief administrative officer.
Tamano did not reveal how they will price their postpaid plans, but said that these will be “game changers.”
As it is, Dito is targeting profitability by 2025 in their original plan. They expect to be cash-flow positive in three years and EBITDA (earnings before interest, taxes, depreciation and amortization) positive in five to seven years since they began commercial operations back in March 2021.
Tamano also said Dito could also offer vanity mobile numbers for interested consumers as part of their offering. For context, the state gives telcos specific number series for mobile numbers that these firms could offer to subscribers, which Dito said Smart Communications, Inc. and Globe Telecom Inc. has run out of.
“That’s an obvious advantage on our part,” Tamano added.
The Uy-led telco is planning to spend P27 billion for capital expenditures in 2023. — Ramon Royandoyan
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