The company needs to “move firmly into social media, social networking and Internet spaces before they move into ours and eat our lunch,” Pangilinan told the company’s shareholders and officials.
“Innovation and competition will not only come from telcos like ourselves but also from ‘over the top’ players belonging to the Internet space like Facebook, Google, Apple and YouTube, which actually compete with us,” he said.
He later told reporters who interviewed him at the venue, “margins are getting depressed by staying purely as a distribution company, as an infrastructure company… We have to be something more than that.”
“And really the next frontier lies in the media space — both in the legacy and in the new media space. And how you will blend the telco, utility operations with the creative part of social media is a big challenge. Nobody has been successful yet,” he said.