“PLDT’s funding shortage is about P2 billion annually,” noted the 1995 book Telecommunications Politics, which said this “beleaguered PLDT’s expansion plans” and was largely attributable to Cojuangco’s reluctance to issue equity that would dilute his control of the company.
Then a lumbering, complacent monopoly—with many households still without a “landline” phone—the nation’s dominant telecom player drew its share of criticism. In 1992, following the election of Fidel V. Ramos, the FVR administration began hitting PLDT for its slow line growth and mounting backlog, which had reached around 800,000—equivalent to 100 percent of its installed base.
In response, Ramos issued two key executive orders that would pave the way for the eventual deregulation of the telecom industry: one mandating interconnection among authorized carriers, allowing subscribers to choose their long-distance provider; the other promoting universal access to basic telecommunications services.
If Cojuangco maintained a firm and stubborn grip on PLDT in the early 1990s, a series of events would see his family relinquish control in 1998—a dramatic turnaround. That year, First Pacific, led by Manuel V. Pangilinan, acquired a 17.5-percent stake in PLDT for about P29.7 billion.
As the monolithic era in the telco industry came to an end, a promising new chapter—fraught with its own challenges—was about to unfold.
Changing of the guard
Having overcome seemingly insurmountable odds that initially caught First Pacific by surprise—most notably mobile phone unit PILTEL’s more than P30 billion in debt and massive operating losses—Pangilinan passed the baton as PLDT CEO in 2004 to Napoleon “Polly” Nazareno. Nazareno died on March 23, 2026, in Canada.
Also known as NLN, he succumbed to spontaneous intracranial hemorrhage, having led a life “marked by purpose, faith and love.”
In a statement, PLDT said: “NLN led with discipline and quiet strength. Never seeking recognition, yet earning the highest respect from all who worked with him. Those of us who worked with him admired his character. He was a mentor and a builder of teams. He shaped not only strategy but also culture—instilling values that continue to guide us today.”
For his part, PLDT COO Butch Jimenez, in a Facebook tribute, said:
“Polly saw something in me I didn’t see in myself. He took a bet on the newest kid in his team. While I first considered Polly as a boss, eventually, I realized he was more a father to me and the PLDT Smart family.”
Taking the lead
Previously appointed to lead Smart Communications at the turn of the millennium, Nazareno pinned the woes of PILTEL —which he also managed and was later acquired by Smart —on how “the company failed to cope with the rapid advances in technology and the aggressive marketing stance of its competitors.”
In a message to shareholders following his appointment, Nazareno said:
“My assumption in early 2004 of the presidency at PLDT, while concurrently retaining the same position at Smart, signaled the beginning of a new mindset—one where we think ‘Group’ first.”
This “Group” mindset, he added, meant “harnessing the strengths of the individual businesses and transforming them into tangible synergies—bundled products and services, innovative solutions to market demands, and an open attitude to so-called ‘disruptive technologies.’”
Hitting the ground running, Nazareno urged phone manufacturers at the 2004 GSM Asia Conference to develop more affordable basic handsets so wireless operators could serve lower-income subscribers.
“We are talking here of addressing real needs of a significant chunk of the population,” he said.
A period of growth
Driven by this impetus—and with an eye toward moving beyond mobile growth—PLDT in 2005 began upgrading its network to the Next Generation Network (NGN), enabling more efficient transmission of voice, data, and video.
A year later, its broadband business—PLDT MyDSL and SmartBro—grew rapidly, supported by both wired and wireless infrastructure. This included 1,000 Smart WiFi base stations and 90,000 DSL subscribers.
Around this time, MediaQuest Holdings—a wholly owned subsidiary of the PLDT Beneficial Trust Fund—along with Smart, conducted early test broadcasts of mobile TV via Digital Video Broadcast, efforts that were ahead of their time, presaging the advent of today’s streaming services.
Under Nazareno’s leadership, PLDT led the country’s shift to high-speed mobile internet, launching its 3G network in 2010 and LTE two years later. It also concluded the acquisition of Digital Telecommunications Philippines (Digitel), operator of Sun Cellular, significantly expanding its reach.
Pasa Load, Smart Padala
Meanwhile, at Smart, Nazareno noted that since 2009, the company had introduced over 170 mobile value added services—roughly one new offering each week.
All SMS-based—the existing technology then—its most notable innovations were Smart Money, described as the world’s first wallet card linked to a mobile phone, and Smart Zed, a mobile portal for personalized services.
“In Smart’s case, this perspective of the challenges of the Philippine market has led to the development and launch of groundbreaking mobile commerce services such as Smart Load, Smart Pasa Load, and Smart Padala,” said Nazareno.
Smart also partnered with Security Bank in 2001 to pioneer mobile banking services.
“Smart is pleased with this partnership with Security Bank in providing mobile banking services. We are actively promoting mobile commerce applications in the Philippines through our value-added services,” he said.
In 2017 Nazareno was appointed to Security Bank’s board as independent director.
Rocket internet debacle
Nazareno’s time as chief executive was not without missteps. He championed in 2014 the investment in Rocket Internet—”PLDT’s biggest overseas investment to date, valued at 333 million euros”—a German startup incubator that would later prove to be the proverbial albatross around PLDT’s neck.
"PLDT continues to build on its strategy to become a driving force in the digital economy," said a confident Nazareno, who sat on Rocket’s supervisory board from 2014-2017. "With Rocket, we have a partner who understands the DNA of the global Internet market more than any other company."
Showing significant promise early on—its IPO on the Frankfurt Stock Exchange had to be concluded days ahead due to strong investor demand—Rocket Internet and its joint venture with PLDT failed to deliver consistent profits and the expected returns, forcing PLDT to sell down its stake, with Rocket redeeming 10.8 million shares in 2018, at a loss.
This would be followed by the sale of an additional 0.7 million shares for roughly 18 million euros and Rocket Internet’s delisting in 2020.
Recording a P2.8-billion impairment loss in 2017, PLDT later framed its soured Rocket investment as having provided technology access that led to the development of Maya, the leading digital bank and e-wallet.
A cross-industry leader
Much as Nazareno enjoyed a rewarding 15-year stint in the telecommunications space—his retirement having been delayed by a year upon the PLDT board’s recommendation—he was never just a telecoms executive. He was a cross-industry leader who brought a manufacturing mindset to his roles at both Smart and PLDT.
Armed with a mechanical engineering degree from the University of San Carlos in Cebu and a master’s degree from the Asian Institute of Management (AIM), Nazareno joined Akerlund & Rausing in 1981, an international packaging firm with Scandinavian roots whose co-founder developed Tetra Pak.
Rising through the ranks, he became president and CEO of Akerlund & Rausing (Phils.) Inc. in 1991.
Four years later, in August 1995, he moved to Metro Pacific Corp., whose flagship project at the time was the development of Bonifacio Global City while also maintaining interests in pharmaceuticals, veterinary products, paper and packaging, and banking.
“Our strategy of diversification and investing for the long term in growth industries is now beginning to generate higher recurring profits,” said Nazareno, who served as Metro Pacific’s president and CEO until 1999.
“Not surprisingly, our significantly increased investments in affiliate companies are resulting in proportionately larger contributions from them relative to our subsidiary companies,” he added.
Demand for technopreneurs
“The corporate world of today needs technopreneurs and corporate innovators more than ever,” Nazareno said in a special 2018 video message from AIM.
“We need individuals who have both the technical skills to drive product innovation and the business acumen to make these innovations take flight.”
“The companies of today and tomorrow will continuously search for those who can both create and manage profitable, technology-driven products.”
Napoleon L. Nazareno, who was 77, is survived by his wife Cecille, daughter Apple, daughter-in-law Karrots, and five grandchildren.
In 2019, his son Bryan, a NAUI Advanced Open Water Diver with 600 dives to his name, mysteriously vanished while exploring with a group the Tubbataha Reef in Palawan. —Ed: Corrie S. Narisma
Features Reporter
