With the telco space experiencing tight competition, value-added services on top of core services will be vital in attracting new users and maintaining them for the long-term. With the new digital services tax raising the standalone cost of streaming services for consumers, it would be easier for the telcos to upsell existing subscribers to their bundle plans and improve customer retention. Our analysis shows that GLO currently offers the most value at P5.00 per mbps alongside a basic Disney+ account, followed by TEL (P5.33\/mbps) and CNVRG (P7.79\/mbps) with both also having basic access to the streaming platforms offered.<\/p>\n\n\n\n
Globe Telecom, Inc. (GLO) \u2013 Buy, Target Price of P2,450.83<\/strong><\/p>\n\n\n\n PLDT Inc. (TEL) \u2013 Buy, Target Price of P1,618.62 Several markets in APAC, including Malaysia, Philippines, Thailand and Indonesia, demonstrate higher engagement with mobile for activities like reading news or magazine content and watching video on devices other than TV sets. This is according to Matthias Gitschel, director for audience measurement at Ipsos UK; a multinational market research and consulting firm that provides research and analysis services globally. With most of entertainment services being accessible through mobile phones, TEL, GLO and CNVRG are positioning themselves to capitalize on these consumer trends.<\/p>\n\n\n\n Telcos have already been bundling fiber services with streaming services such as Disney+, Netflix, VIU, Prime Video, which could become more enticing for consumers after June 2 when the 12% VAT on digital services come into effect following the signing of Republic Act (RA) No. 12023. CNVRG\u2019s existing bundles already account for the 12% VAT, which could result in a slight contraction in its margins when it comes into effect.<\/p>\n\n\n\n Cignal TV, owned by TEL\u2019s MediaQuest Holdings, and partner Tata Play has launched Cignal Super which features MAX, VIU, Lionsgate Play, Hallmark+, Curiosity Stream, Fuse+, Pilipinas Live, and Cignal Play. Cignal Super currently offers two plans: P799\/month for access to all streaming platforms, and P499\/month for a curated selection. Cignal TV President and CEO Ms. Jimenez-Basas said Cignal TV plans to add more partner streaming services within the year. Moving forward, the company plans to double its app registrations to 1-Mn users within 12 months.<\/p>\n\n\n\n
<\/strong>
Converge ICT Services, Inc. (CNVRG) \u2013 Buy, Target Price of P24.58<\/strong><\/p>\n\n\n\nMobile-first strategy<\/h3>\n\n\n\n
Telco bundles broadband with streaming services<\/h3>\n\n\n\n
Cignal TV launches all-in one streaming app<\/h3>\n\n\n\n