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Message from the ChairpersonsGlobe Telecom continued to operate ina very challenging environment in 2010. Themobile telephony sector, which comprisesclose to two-thirds of total industry revenues,remained intensely competitive. There weremany reasons for this. Mobile penetration rateshave peaked, with over 90% of the populationnow owning a mobile phone. Multi-SIM usagecontinued, driving the service providers tocompete for “share of spend” in a decliningmarket. Industry revenues contracted, despitean exponential rise in voice and SMS traffic,as the market increasingly shifted towardsflat-rate, unlimited value promotions which,in turn, accelerated the erosion of unit pricesand margins for domestic voice and dataservices. The development of a wider rangeof communications options; including socialnetworking sites, email, instant messaging, andvoice over IP, also weighed on the industry’sinbound call volumes and revenues. Finally,these negative forces were exacerbated bythe impact of the strong peso on US$-linkedrevenues.Counterbalancing these industry dynamicswas the sustained robust growth of broadband.In this sector, industry subscribers rose by 40%from 2.5 million in 2009 to about 3.6 million bythe end of the year. This was brought about bythe increasing affordability of access devicessuch as laptops, PCs, and tablets, and thewider availability of internet service as industryplayers aggressively expanded networkcoverage. Wired and wireless broadbandtechnologies were harnessed to deliver internetconnectivity to both the fixed and fully-mobilemarkets nationwide. Prepaid offers at sachetprices also became pervasive, making theservice more accessible to a much widermarket base, particularly among the youth.Against this industry backdrop, GlobeTelecom posted service revenues that wereflat against the previous year, and a netincome of P9.7 billion, which was 22% lower7