Recession or not, Pinoys still spending for cell load

“Telecommunications will be one of the last to go. In fact, some people say maybe food is not actually the last to go [in the Filipinos’ spending preferences] and that transportation would be the last option because people need to get to their jobs. But I really think that telecommunications services will be one of the last to go [in the consumption pie],” said Globe Telecom president Gerardo Ablaza.

This view is consistent with the dynamics of our society since practically every Filipino has a relative working overseas, said the Globe executive. “They need to get in touch with their families and friends and the only way to do that is to call them.”

Telecommunications services, said Ablaza, account for about 7 percent of the country’s gross domestic product (GDP), or the total market value of all final goods and services produced in a year.

“We haven’t done a direct correlation between inward remittances and our own revenue performance. But we do know that telecommunications services account for a certain percentage of GDP. GDP, in turn, is partly driven by the flow of remittances because these remittances pay for consumer purchases. But we haven’t established the direct correlation in remittances and telco consumption,” explained Ablaza.

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