MANILA – New telecommunications player Dito (formerly known as Mislatel) is likely to pursue an “aggressive” pricing strategy on its first few years of operations to gain market share, Fitch Ratings said Tuesday.
Although competition in the telco space is expected to remain “stable” in the next 12 months, it will intensify in the next few years as Dito Telecommunity begins network rollout, Fitch Ratings director for Asia Pacific Corporate Ratings Janice Chong told ANC.
Chong said Dito may gain at least 5 percent of mobile market share within 2 to 3 years.
“Competition is likely to intensify. Like most newcomers it is likely to pursue an aggressive pricing strategy to gain market share,” Chong said.
Credit rating firm S&P Global earlier said a part of PLDT's revenues could be exposed to competition due to Dito's entry.
Dito, meanwhile, needs to compete not just in pricing but also in terms of providing faster network speed, Chong said.
“I think it’s not just about rates...The consumers are looking for faster speed. Everything is over the mobile data, so clearly you would need to compete in providing faster speed networks,” Chong said.
Fitch said it maintained a “negative outlook” for the country’s telco sector, highlighting potential “pockets of growth” here.
Dito, a consortium of businessman Dennis Uy's Udenna Corp and Chelsea Logistics with China Telecom, acquired its license to operate last July 8.