DITO: Break even may take years
It’s not going to happen this year or even next year. But of course, we will work on that
It would take years before startup DITO Telecommunity Corp. hits its profitability targets despite its upcoming commercial launch which is anticipated to usher in stiff market competition.
The Chinese-backed telecommunication firm, on Tuesday, admitted that “it will take a while” before the network generates a profit.
“(Generating profits) would take years. It’s not going to happen this year or even next year. But of course, we will work on that,” DITO administrative officer Adel Tamano told reporters.
Meanwhile, DITO chief technology officer Rodolfo Santiago said in jest: “I thought this is just a public service? Do we really have to profit from this?”
This year, DITO said it is on track to meet its capital expenditure guidance, with P26 billion earmarked for spending. In 2020, the company set aside P150 billion to support its infrastructure rollout.
DITO forges deal with Globe
“We would rather spend our money on towers than on K-Pop stars. We’re not spending millions to get endorsers because our best endorsers are the people,” Tamano underscored.
Relatedly, DITO has also inked an interconnection deal with Ayala-led Globe Telecom, Inc. to boost customer experience.
The interconnection agreement covers domestic mobile calls and SMS enabling Globe’s customers to make mobile calls, send SMS with DITO Telecommunity’s customers without additional charges.
The deal is expected to kickoff next month.
I thought this is just a public service? Do we really have to profit from this?
By 8 March, at least 10 physical retail stores will open in the Visayas and Mindanao. Dito cell numbers will use the following prefixes: 0991, 0992, 0993, 0994, 0895, 0896, 0897 and 0898.
Despite speculations on potential espionage, DITO is still pushing to build cell sites inside military camps.
5 towers inside camp
In the Camp Aguinaldo in Quezon City alone — the headquarters of the Armed Forces of the Philippines — the network was cleared to build five towers.
Santiago said they are just waiting for the final go-ahead before they proceed with the construction.
Currently, DITO is “on track” to build over 2,000 cell towers nationwide to meet its second technical audit requirements.
DITO promised to cover 84 percent of the Philippines and offer a minimum average speed of at least 55 Mbps by the end of its commitments.
DITO consortium is composed of Dennis Uy’s Udenna Corp., its subsidiary Chelsea Logistics Holdings Inc., which owns 60 percent of the firm, and state-owned China Telecommunications Corp., which owns the remaining 40 percent.