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Sales demonstrations

WHEN selling high-value or high-tech products, it is not unusual clients often ask for and expect an equipment demonstration or trial installation. This is the time they get a close-up look at what they might be buying and, perhaps, more importantly, get the opportunity to see how it works. However, ill-planned or inappropriate demonstrations will do more harm than good.

Demonstrations are a highly effective way of selling. But many things can and will go wrong. There are some basics that should be followed. Very often, demonstrations form part of a sales presentation. If possible, the equipment should be set up in an area so it will not distract the verbal part of the presentation.

I recall attending a presentation for mobile radios in Hong Kong. The presenter had a significant amount of information to impart throughout the first 30 minutes of the presentation, after which, he would demonstrate the equipment. However, throughout his talk, the equipment, placed on a nearby table, continued to squawk, beep and pick up fragments of police radio messages. Guess where the audience’s attention went? If possible, keep the equipment out of sight, turned off or covered until ready to start the demonstration.

The presenter should avoid patronizing the audience during the demonstration. Remember, demonstrations should not be used as training sessions (or vice versa)! Explaining every feature on the equipment is unnecessary. The presenter should concentrate on those features that he knows the client needs or is specifically interested in.

Sometimes the equipment to be demonstrated is too small. In this situation, consider removing the demonstration from the presentation completely or using a CCTV camera and LCD projector so everyone can see what is being done. Even if the equipment is large, many people crowding around to see what is happening rarely affords everyone a good view. Consider placing a barrier around the display or putting the demonstration unit in the middle of a large table. This is one way of keeping people back and allowing everyone to see. However, make sure you can reach all the controls. The presenter or demonstrator should avoid making his audience look foolish or stupid by asking them to participate in a demonstration, particularly if they are unfamiliar with the equipment. I recall one senior operations manager feeling acutely embarrassed at not being able to identify an on/off switch. Since her endorsement was critical in the purchase, little wonder that she opted for another brand.

Demonstrations should be short. The equipment should be set up and tested before the presentation. A salesperson who spends 10 minutes installing, switching on and testing his demonstration unit in front of a live audience will certainly lose their attention and interest.

Getting things ready before the start should also add a degree of confidence that everything will work. However, Murphy’s Law says that if something can go wrong, it will go wrong. If the demonstration starts to fall apart, don’t try to plod through it. Abandon it in favor of another activity or a nonworking demonstration.

If demonstration items are passed around a room for the audience to examine, make sure they keep moving around the room. People waiting for items to be passed to them will be distracted and, out of spite, may take a long time examining the item when it finally reaches them. And remember that when items are being passed around, many in the room will not be listening to the message.

No matter how “friendly” an audience is, there is always the possibility of sabotage. Often done in good humor or as a “practical joke,” it can nonetheless ruin what would otherwise be an excellent demonstration. Keep this in mind and minimize the risks by keeping the audience out of range of the demonstration (and away from the electrical outlet)!

No matter how familiar the salesperson might be with the equipment, all demonstrations should be rehearsed and a comprehensive checklist of all required items made. One salesperson turned up in my friend’s office with a computer system, monitor, printer, and LCD projector for a demonstration of inventory control software. However, he had forgotten to bring an HDMI cable. Since no one in the office had one, he wasted 45 minutes having one sent over from his office.

Avoid the pitfalls by careful planning demonstrations. Rehearse and use checklists. Learn from your last presentation; each time you deliver a presentation, focus on what you need to do to improve. If the untoward happens and your carefully rehearsed presentation starts to fall apart, don’t panic. Shut it all down and rely on your verbal presentation.

Terry Hockenhull is a long term resident of the Philippines. He is an accomplished sales consultant and currently holds an executive sales position with an Italian geotechnical company.

Contact the author through hockenhull@gmail.com

For good

CONCERT
Kaya Natin ‘To: A Benefit Show
Aug. 30

RESORTS WORLD Manila (RWM) will be holding a concert to celebrate the recovery of the people, and of the casino resort, who were hurt during the June 2 shooting incident which claimed 38 lives including that of the shooter, and injured 67 others.

The Aug. 30 concert, titled Kaya Natin ‘To: A Benefit Show, is meant to “celebrate life, hope and togetherness” with more than 50 performers from the theater and music industries coming together.

Singer Noel Cabangon is behind the titular song, a ballad which he wrote and recorded in a week’s time.

The concert will feature performances by the casts of Resorts World Manila’s musical productions including Cinderella, Priscilla Queen of the Desert: The Musical, King & I, Annie, Bituing Walang Ningning, and the upcoming Chitty Chitty Bang Bang, among others.

Joining them are the RWM Homegrown Artists Primo and Singing Sensations, with the special participation of Ultimate Shows’ concert artists Noel Cabangon, Dulce, Kakai Bautista, and Arthur Manalang.

Other performers include Bamboo, Bo Cerrudo, Christian Bautista, and Gian Magdangal, to name a few.

Kaya Natin ‘To will be directed by Freddie Santos (who also wrote the concept and script) under the baton of Rodel Colmenar with the Manila Philharmonic Orchestra.

Proceeds from the concert will be for the benefit of the Children of Resorts World Manila Foundation.

Tickets are available at the Resorts World Manila Box Office and at TicketWorld outlets (www.ticketworld.com.ph). Tickets range in price from P1,000 to P5,000.

UK immigration

LONDON — The UK will review the way it calculates the number of immigrants in the country after finding that more international students leave after finishing their courses than was previously thought.

The question of whether students should be included in migration numbers has been a long-running row for the Conservative government, with some prioritizing a pledge to cut net migration to 100,000 a year and others valuing the economic and academic contribution that foreigners make to British universities. Immigration is a key issue in the Brexit debate.

“The Home Secretary is announcing today a review into the impact of international students on our system,” Schools Minister Nick Gibb told the BBC on Thursday. — Bloomberg

Romualdez steps down from Benguet Corp.

BENGUET Corp. on Thursday said Benjamin Philip G. Romualdez has stepped down as president and chief executive officer due to health reasons.

Benjamin Philip G. Romualdez gestures as he delivers remarks at a business conference. — BW FILE PHOTO

“The Board approved the early retirement of (Mr. Romualdez) as President and CEO of the company for health reason, and his resignation as director and vice-chairman of the Board of Directors, effective Aug. 23, 2017,” Benguet Corp. told the stock exchange.

The company noted Mr. Romualdez has been on leave since Jan. 27, 2014, which has been extended indefinitely until his early retirement.

Mr. Romualdez has been the president and CEO of Benguet Corp. since June 25, 1998; vice-chairman since July 21, 2011; and director of since May 26, 1992.

“To replace Mr. Romualdez, the Board elected Mr. Leopoldo S. Sison III as the President and Chief Executive Officer of the Company and appointed him as a Director in the Board of Directors,” the mining company said.

Prior to his election, Mr. Sison was senior vice-president of Benguet Corp.’s nickel operations.

Shares in Benguet Corp. slipped 0.54% to close at P1.83 apiece on Thursday. — Janina C. Lim

What to see this week

5 films to see on the week of August 25-September 1, 2017

Bushwick

Bushwick

A WOMAN finds herself trapped in a bloody battle in Brooklyn’s Bushwick neighborhood as American finds itself caught in another Civil War. A war veteran then reluctantly helps her try to escape Bushwick. Directed by Cary Murnion and Jonathan Milott, it stars Brittany Snow and Dave Bautista. “The Purge sequels do this kind of thing with a lot less fuss,” writes A.A. Dowd of the AV Club.

MTRCB Rating: R-16

Woke Up Like This

Woke Up Like This

AFTER BEING mean to a beggar who turned out to be magical, a basketball player and a model find themselves trapped in each others’ bodies. Directed by Joel Ferrer, this Regal Entertainment film stars Lovi Poe and Vhong Navarro.

MTRCB Rating: PG

A Family Man

A Family Man

A COMPETITIVE professional finds his priorities are called into question when his son is diagnosed with cancer. Directed by Mark Williams, it stars Gerard Butler, Max Jenkins, Willen Dafoe, Gretchel Mol, and Alfred Molina. The film received a paltry 13% rating from review aggregate site Rotten Tomatoes. “A loathsome redemption tale that rings false on every front,” is the assessment of the Hollywood Reporter’s John DeFore.

MTRCB Rating: PG

Cyborg X

Cyborg X

AFTER A WEAPONS manufacturer is taken over by a Cyber Virus, a group of survivors must fight to save humanity from the army of machines the Virus now controls. Written and directed by K. King, it stars Danny Trejo, Eve Mauro, and Rocky Myers. “Cyborg X definitely isn’t the worst exploitation flick out there — some of the gore effects, in fact, are pretty good, if you’re into that kind of thing — but being superior garbage doesn’t mean it’s worth watching,” is the opinion of Richard Cross of 20/20 Movie Reviews.

MTRCB Rating: R-16

Annabelle: Creation

Annabelle: Creation

A COUPLE still grieving the death of their daughter, welcomes a nun and several girls from an orphanage who soon becomes the target of the dollmaker’s possessed creation, Annabelle. This horror sequel from director David F. Sandberg stars Anthony LaPaglia, Miranda Otto, Stephanie Sigman, Talitha Bateman, and Lulu Wilson star. The film received a 67% rating from Rotten Tomatoes review aggregate site whose Critics Consensus goes: Annabelle: Creation adds another strong chapter to the Conjuring franchise — and offers further proof that freaky-looking dolls remain reliably terrifying.

MTRCB Rating: R-13

Draghi urges open-minded central banking

MARIO DRAGHI said central banks must be open-minded on policy innovations as they prepare for future economic developments — even if that concept is not clear to everyone.

In a speech that avoided any specific signals on the European Central Bank’s (ECB) current deliberations, the institution’s president said officials must be “unencumbered by the defense of previously held paradigms that have lost any explanatory power.” He spoke to an audience of 17 Nobel laureates and 350 young economists in Germany, a nation which has been one of the stiffest critics of ECB policies such as quantitative easing (QE).

“When the world changes as it did ten years ago, policies, especially monetary policy, need to be adjusted,” he said in a prepared text. He then added in an unscripted remark that “that’s obvious for most people, but not for everybody.”

The speech in the southern town of Lindau came as ECB policy makers gear up to discuss the future of their stimulus program at their Sept. 7 meeting. The central bank is entering a crucial phase of its battle to restore euro-area price stability as inflation fails to keep pace with the economic upturn.

A purchasing managers survey published Wednesday showed euro-area manufacturers continuing to feed economic growth and create jobs. Yet consumer-price growth was just 1.3% in July — enough to argue that deflation risks have disappeared but too little to meet the ECB’s goal of just under 2%.

Draghi said global policy actions have “made the world more resilient,” but officials “should continue preparing for new challenges.”

AUTUMN DECISIONS
One of those challenges is judging how much euro-area monetary support is still needed for the recovery to become durable, and how markets will react when it is gradually withdrawn. A particular concern among officials, expressed at their last policy meeting in July, is the risk that a stronger euro will undermine the recovery. The single currency has risen more than 5% on a trade-weighted basis this year and 12% against the dollar.

Investors will likely now watch for clues on Friday, when the ECB chief is due to speak at the Federal Reserve’s symposium in Jackson Hole, Wyoming. He’ll join his US counterpart Janet Yellen, among others, in discussing how to foster dynamic growth.

In a sign that German officials remain skeptical of the need for bond purchases, Bundesbank President Jens Weidmann said in a Boersen-Zeitung interview published Wednesday that he didn’t see an “acute” need to extend QE into 2018. He also warned against changing the parameters of the program.

Draghi stressed in Lindau that monetary policy relies heavily on academic input, saying that “a policy response that has its foundation in rigorous research is less prone to being impaired by political compromise and easier to explain to the general public.”

He also said studies show innovations such as forward guidance and the ECB’s €2.3 trillion ($2.7 trillion) bond-buying program, as well as the equivalent program undertaken by the US Federal Reserve, have been successful in supporting the economy and inflation. That view wasn’t wholly endorsed by Nobel Laureate Christopher Sims.

“My view is that the unconventional actions that the Federal Reserve took in the early stages of the crisis were extremely effective as a major lender of last resort,” he said in a Bloomberg TV interview with Francine Lacqua. “The subsequent quantitative easing I don’t think was harmful, I think it may have been somewhat helpful, but I don’t think it’s been a major powerful instrument of monetary policy.”

After leaving the podium, Draghi took one last swing at his critics.

“You need serious conceptual analysis and base policy on that, not on prejudice, or — even worse — on moral grounds,” he told reporters after his speech. “Some people say ‘Oh, QE is immoral, because it creates money out of nothing.”’ — Bloomberg

Forbes’s 10 richest Filipinos in 2017

HENRY SY, Sr. of the SM Group has remained the country’s wealthiest man on the ForbesPhilippines’ 50 Richest List for the tenth straight year, with the economic policy of President Rodrigo R. Duterte playing part in dictating the fortunes of the country’s business magnates. Read the full story.

Duterte’s infrastructure dev’t drive impacts Philippine tycoons’ fortunes

Rapper defiantly stares at eclipse, cancels shows

NEW YORK – For a rapper whose debut single was called “Unorthodox,” Joey Bada$$ isn’t one to accept conventional wisdom. Defying widespread warnings, he proudly stared at the solar eclipse without protection.

It didn’t turn out to be a great idea. The rapper canceled three shows starting Wednesday as he complained about his vision.

The Brooklyn rapper, 22, on Monday shared on social media that he was gazing into the sky without special glasses as the United States witnessed its first coast-to-coast total eclipse in nearly a century.

“This ain’t the first solar eclipse and I’m pretty sure our ancestors ain’t have no fancy eyewear. Also pretty sure they ain’t all go blind,” he tweeted.

But he also said that he was seeing in different colors. He said his three shows – in Cleveland, Chicago and Toronto – were canceled due to “unforeseen circumstances” and hinted that his vision was to blame.

“Seeing double, stacking triple,” he tweeted Wednesday, using hip-hop slang for cashing in.

The rapper – whose latest album, All-Amerikkkan Bada$$, tackles racism, mass incarceration and other issues facing the United States – had unlikely company in his defiance at staring at the eclipse.

President Donald Trump, known for shunning experts, also looked into the sky without protection as cameras were on him, but only briefly. He has not reported any vision issues since. – AFP

Andy Bautista’s side of the story

ANDRES Bautista (Andy) and Patricia Paz Cruz (Tisha) met on an airplane en route to Hong Kong sometime in 1999. While checking-in, Tisha’s beauty and personal style caught Andy’s eye, prompting him to make secret arrangements with the airline’s ground staff for him to be seated beside her. Side by side, 32,000 feet over the West Philippine Sea, Andy befriended Tisha. He later discovered that Tisha was billeted at the Mariott Hotel. Upon arriving in Hong Kong, he booked himself in the same hotel to continue the flirt offensive. Andy’s efforts paid off. Soon after, they were a serious couple on the way to the altar. So in love were the couple that Cole Porter’s “The Way You Look Tonight” remained their anthem for many years.

Andres Bautista
Comelec chairman Andres Bautista hold a press briefing at the Comelec building in Intramuros Manila on Aug. 7 and denies all the allegation of his wife. — PHILIPPINE STAR/EDD GUMBAN

Fast forward to August 2017 and Tisha accuses Andy of graft, corruption and other vile indictments before a salivating media. The accusations were a result of Andy’s alleged refusal to give Tisha a divorce and her fair share of the family’s assets. With their proverbial dirty linen exposed, the public feasted on the couple’s marital woes. Meanwhile, the four Bautista children face severe shaming among their peers at the Ateneo. The persecution is so severe that the middle child has not attended classes since Aug. 7. As usual, the children pay the price of the parent’s misdeeds.

How did a beautiful story between two intelligent, civilized and accomplished people turn so ugly, so fast? I recently sat down with Andy to get his side of the story. I also asked him, rather bluntly, to state his defenses against the accusations hurled at him. This is what I came out with.

WHERE IT WENT WRONG
The downward spiral started in 2012 when Tisha started a business called Angel Brigade, later on renamed “Archeology.” The business traded in fortune-telling and other forms of the occult. She claims to have a third eye. Tisha was in partnership with Alvin Lim, the former life partner of Margarita Fores (Gaita), who, was also a good friend of Tisha’s.

Rumors soon spread that Tisha was having an affair with Alvin. The fact that she would spend as much as three nights a week with her “business partner” at their office only stoked the rumor flames. Eventually, Gaita discovered intimate e-mails between the two which eventually found its way to Andy. Outraged, Andy confronted Tisha and Alvin to ask if indeed, their relationship went beyond business. They denied the intimacy aspect of it. Tisha, however, admitted that Alvin was her true “soul mate.” Alvin allegedly has a third eye too.

Tisha’s declaration broke Andy, as it would any husband. Still, he was willing to work it out. However, Tisha’s mind was set on ending the marriage. She asked, numerous times, for a divorce but Andy would not grant it owing to the fact that the kids were still too young to handle the separation. Both families being devout Catholics, appealed to them to honor their vows, no matter how inconvenient.

The Bautista couple have been estranged since 2012. Although living under one roof, the intimacy was gone and the marriage was reduced to a relationship of civility. Tisha continued to ask for a divorce and a monetary settlement while Andy tried to hang on.

THE TIPPING POINT
The tipping point came in November last year.

While in the US to observe the American presidential elections, Andy received a call from Banco de Oro asking clearance for Tisha’s withdrawal of $117,000 and P250,000. Shocked, Andy tried to call Tisha but to no avail. The withdrawal went through as Tisha threatened to throw a tantrum at BDO if she didn’t get her money. It was a joint account.

At this point, Tisha had already hired Atty. Lorna Kapunan.

All hell broke lose when Andy arrived from the States. He was barred from entering their conjugal home by two armed men with pistols. The guards told Andy that they were there upon the instruction of Kapunan.

Inside the home, Tisha found a way to open Andy’s private cabinets from which bank statements, property titles, and cash were retrieved.

In Dec. 13, Andy’s camp received a text message, presumably from the office of Kapunan. The text contained a threat saying that they would organize a full-blown annulment case to cause a scandal and file money laundering and impeachment case against Andy. This led Andy to conclude that the attack on his person was pre-planned, pre-calculated, and premeditated.

Last February, Andy received a letter from Tisha’s lawyers demanding a settlement of P500 million in cash plus their adjoined conjugal home at Pacific Plaza Condominium worth about P120 million. The basis for the amount was Andy’s alleged net worth of over a billion pesos.

Andy maintains that his net assets are only worth P210 million. In a meeting negotiated by Tisha’s brother, Boey, Andy offered a settlement of P90 million plus a quiet divorce in Hong Kong. Everything was supposedly ironed out — at least until Tisha went public with the alleged corruption scandal a few weeks ago.

QUESTIONS
Marital issues aside, I reckon the entire issue comes down to three fundamental questions relating to Andy’s finances. I asked these questions, and he answered. You be the judge as to whether his answers carries weight.

My first question relates to the disparity of his SALN. The various bank statements and titles gathered by Tisha shows Andy’s net worth to be more than a billion pesos. His SALN, however, totals only P176 million. How is this justified?

Andy explained that if you look at the titles and bank accounts, the majority of them are “and/or accounts” with two to five nominees, all of whom are members of his family. As the lawyer of the family based in Manila, Andy is the default caretaker for the family estate, he says. All seven Bautista siblings are successful in their own right (doctors, lawyers, CEOs, etc.) as were the parents, hence, the amounts are substantial. Like many Filipino families, the Bautistas invest jointly to safeguard against legal complications in case someone passes away.

Tisha was well aware of the arrangement from the beginning, he added.

Why were the joint accounts left-out of the SALN?

Most, if not all public servants declare only the assets and liabilities which belong solely to them on their SALN, explained Andy. This is how the law is interpreted.

This also explains why politicians likes of Juan Ponce Enrile declared a net worth of only P122 million while his family owns the JAKA Group, a conglomerate worth hundreds of billions.

Accounts held on an and/or basis, especially with two or more nominees, are not normally declared by public servants. Whether this is right or wrong is subject to another discussion. The point is, Andy claims he only followed the established methods of the bureaucracy.

So how do you explain having 37 bank accounts with a collective balance of more than P500 million on a government salary, I asked.

Before joining government, Andy says he was a practicing lawyer, a country head for an international consulting firm and CEO of Kuok Properties, among others. In short, he was established before joining government, he asserts.

As for the P500 million, Andy claims that a good number of these bank accounts are closed. Those that remain are funds of the family. All these, he says, will be explained in detail before the courts. There is nothing to hide.

On the side, I asked if there was political motivation to this controversy? He answered in the affirmative.

Is it true you are holding on to your position to protect the interest of the Liberal Party?

To this, I discovered that Andy is not even a member of the Liberal Party. He never was. In fact, records show that he ruled in favor of Grace Poe’s presidential candidacy despite this working to the disadvantage of Mar Roxas.

Tisha has since filed a “violence against women and children” case against Andy for not appropriately providing for her monetary needs. For his part, Andy has filed multiple cases against Tisha for extortion and blackmail, among others.

While the parents fight it out, the shaming of the kids continues. Only time will tell how deep the scars are and if this family will have anything left to heal after the dust settles.

Andrew J. Masigan is an economist.

The clinical trials journey

IT takes at least 10 to 13 years for a new medicine to complete the research and development process — approximately the same time needed for a child to finish his K to 12 basic education.

Biopharmaceutical research and development is set in motion by the discovery process, which takes three to six years to complete. Another six to seven years is required for the next stage called the development process.

Apart from the time necessary to discover and develop potential new medicines, biopharmaceutical companies also invest about $2.6 billion in the complex search for life-saving drugs. It includes the cost of failures where thousands, or millions, of compounds are screened but only few eventually receive regulatory approval.

Determining the quality, safety, and efficacy of medicines is primary to the drug development process. Clinical trials are at the center of the development process, where all potential medicines undergo extensive studies to demonstrate that they are safe and effective for human use.

Phase I of the clinical trials is the first time that the candidate medicine is tested on people. It involves initial safety testing with a small group of healthy volunteers, usually 100 people or less. Scientists examine the pharmacokinetics of the drug, such as how it is absorbed, metabolized, and eliminated from the body. They also look into its pharmacodynamics, zeroing in on any potential side effects. Results of Phase I clinical trials will help identify the safe dosing range for the candidate medicine.

The next stage of development is the Phase II clinical trial where researchers assess the safety and efficacy of the candidate drug in about 100 to 500 patient volunteers. Phase II trials compare patients receiving the drug with patients receiving either an inactive substance (placebo) or a different medicine that is the standard of care for the disease. Scientists continue to identify optimal dose strength and schedules for using the candidate medicine, as well as any possible adverse events.

If the results are positive during this stage, researchers advance to the much larger Phase III trials. This third and final stage in clinical trials is also considered the costliest and longest phase in the development process.

There is a huge expectation for the candidate drug at this stage. A candidate medicine must demonstrate safety and efficacy in a large group of patients, enrolling 1,000 to 5,000 people or more in different countries. This often requires the need to coordinate study results in various sites at hospitals and centers across the world. Biopharmaceutical companies work closely with each of the trial sites as well as the Institutional Review Board (IRB) or Ethics Committee and the regulatory agency. Moreover, the expertise of a clinical research organization is often needed to aid in the day-to-day operations of the trial.

The main objective of Phase III trials is to generate statistically significant data about the safety, efficacy, and the overall benefit-risk relationship of the potential medicine. It also ensures the proper use of the drug such as generating data for potential interactions with other medicines and specific dosing instructions, among others.

If the drug continues to show relevant outcomes, biopharmaceutical companies prepare for high quality production for use in the trials while planning for the full-scale production of the medicine after approval. (For more information about the clinical trials process, read the “Biopharmaceutical Research and Development: The Process Behind New Medicines” on phrma.org.)

(To be continued)

Medicine Cabinet is a column of the Pharmaceutical and Healthcare Association of the Philippines (PHAP), representing the research-based medicines and vaccines sector in the country. The author is the executive director of PHAP. E-mail the author at medicinecabinet@phap.org.ph.

Barriers to entry now much higher for third PHL telco player – S&P

THE possible entry of a third player in the telecommunications industry might be ”disruptive” to the incumbents, but will need sinificant financial muscle to make a dent in the market, S&P Global Ratings said.

“When [PLDT, Inc. and Globe Telecom Inc] jointly acquired SMC (San Miguel Corp.) assets, they raised barriers to entry for telcos… Any new entry could be disruptive, but there are many, many barriers ahead of it,” like larger capital expenditure requirements, S&P Global Ratings analyst Wei Kiat Ng said yesterday in a webcast.

Mr. Ng said the possible third player would also need “huge financial power.”

S&P Global said in the webcast that it expects data revenue of companies it follows in the region to surpass voice and SMS revenues by the end of the year.

The rated sector companies in the region are: Singapore Telecommunications Ltd. (Singtel); Telekom Malaysia Bhd. (TM) and Axiata Group Bhd. of Malaysia; Advanced Info Service Public Co. Ltd. (AIS) of Thailand; PLDT Inc.; PT Telekomunikasi Indonesia’s wireless subsidiary, PT Telekomunikasi Selular (Telkomsel) and PT Indosat Tbk. of Indonesia.

S&P Global also said it expects voice and SMS revenue to fall to only 25% of revenue in five years’ time.

Mr. Ng said the telco industry has “seismically moved” in recent years, particularly in the Philippines, Thailand, and Malaysia where there is intense competition, and least in Singapore.

All rated companies also saw declines in their earnings before interest, tax, depreciation, and amortization (EBITDA),recording low returns on capital amid high capex requirements for acquiring spectrum and technologies such as 4G.

Companies have stretched balance sheets due to decreased margins and elevated capital outlays, and decreased headroom within ratings.

PLDT, with a BBB+/Stable rating, was shown to have “moderate” headroom.

Mr. Ng also said that telcos are grappling with the problem of converting data growth, which produces lower margins, into profitability.

Telcos are trying to resolve this by catering to persons “who are less price-sensitive” and by investing in entertainment services.

PLDT, for example, offers video streaming such as iFlix and Globe offers the streaming service HOOQ.

Telcos also face the challenge of moving to higher technologies and adapting to increasing wants of customers.

Mr. Ng said that consolidation is becoming less apparent in the Southeast Asian markets. “We don’t see that much consolidation anymore, [except probably in] Indonesia. In Singapore, Malaysia, Thailand…[it is] unlikely.”

Mr. Ng also said that it is unlikely for Southeast Asian telcos to acquire 5G technology soon.

“A lot are still grappling with 3G and 4G, more [so] LTE (long-term evolution). I think Singapore, Malaysia, Thailand will be the first to take 5G…In our rating horizon, there is not much expectation (that telcos will take 5G).

Mr.Ng said that with all the issues with monetizing data, the “last thing” on the minds of telcos is acquiring 5G technology. — Patrizia Paola C. Marcelo

Your Weekend Guide (August 25, 2017)

Artisans Fair

NUMEROUS items from top local craftsmen can be found at ArteFino.

FILIPINO artisans will present their wares at the ArteFino crafts fair on Aug. 25 to 27 at the Penthouse of 8 Rockwell, Rockwell Center, Makati City. The crafts fair will feature a new network of up to 70 vetted craft-makers with a special focus on exploring new materials and contemporary design in textile, jewelry, mosaic, pottery, furniture, fashion, and more.

Metropolitan Museum

The Metropolitan Museum of Manila will hold an open house from 10 a.m. to 4 p.m. on Aug. 26, which happens to be the last day to view the exhibit Manila: Hidden in Plain Sight. There will be a special screening of short films at the Tall Galleries as part of the museum’s CineMET x Cinema Rehiyon Program, featuring films from CineKasimanwas: Wester Visayas Film Festival, and there will also be a free guided tour of Manila: Hidden in Plain Sight at 2 p.m. Other ongoing exhibits are Distinct Refinements: Painting from the Provinces which is ongoing at the Tall Galleries until Oct. 28, and The Philippine Contemporary: to scale the past and the possible at the Upper Galleries. The museum is at the BSP Complex, Roxas Blvd., Malate, Manila.

Dance Off Finals

KING Julien’s Dance Off Grand Finals will be held on Aug. 27, 2 p.m., at the Chaos Manila, City of Dreams Manila. The dance tilt, now on its second year, is the culmination of a four-week competition.

Bike Marathon

R.O.X. (Recreational Outdoor eXchange will hold the 7th edition of the R.O.X. Bike Fair. Now on its 7th edition, the R.O.X. Bike Fair, a month-long bike campaign which features a series of bike-related activities and events nationwide. One of the activities is the R.O.X. Bike for a Cause 2017 on Aug, 26, at Nuvali, Sta. Rosa, Laguna, which aims to engage the biking community in a meaningful and charitable biking event. The proceeds for this year’s Bike For A Cause — which will have 26K and 18K courses — will go to the Talahib Pandayan National High School in Batangas City and Heroes on Wheels program.