Chapter 22: Globe Telecom-Succeeding in the Philippine Telecommunications Economy

Ryan C. LaBrie, Arizona State University

USA

Ajay S. Vinzé, Arizona State University

USA

EXECUTIVE SUMMARY

This case examines the role and implications of deregulation in the telecommunications sector on an IT-based services organization in the Philippines. Reports from international lending institutions suggest that investments in the telecommunications sector typically produce up to a 30-fold impact on the economy. Predictions like these have caused several of the emerging economies throughout the world to deregulate their telecommunications infrastructure in an attempt to leverage this economic potential. This case study specifically examines the actions of Globe Telecom from just prior to the 1993 Philippine deregulation through the present. Globe has continued to succeed despite the competition against the Philippine Long Distance Telephone Company, which at one time controlled over 90% of the telephone lines in the Philippines. Globe has been able to do this through strategic partnerships, mergers, and acquisitions. Furthermore, Globe has developed into a leading wireless provider by its effective use of modern information technology.