Sustained government efforts to expand the Philippines’ high-value-added industries are gaining momentum, as new subsectors within the information and communications technology (ICT) industry are joining with flourishing business process outsourcing (BPO) operations in driving the local tech sector to prominence. In particular, the software industry has shown strong growth in 2011. Infrastructure has also made significant strides, driven by demand, as millions of young users flock to the…
Telecoms and IT
From The Report: The Philippines 2012
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Though the Philippines lags behind in several measures of technology penetration, scoring 36 out of 100 in a World Economic Forum report on “network readiness”, internet cafes are plentiful and Filipinos have the highest Facebook usage rate in the world. This drives the market for online games, which are very popular with the Philippines’ substantial young population. Software in general is developing as a viable business model, with 28% export revenue growth in 2010 alone.
In telecoms, the Philippines’ two mobile operators are still adding customers, reaching 92% penetration in 2011. Price wars have driven rates for voice far down, although operators still enjoy some of the biggest profit margins in the world. Once those margins come down, future revenue growth will shift to web-enabled phones and their 3G and 4G services, which are only now coming into fashion.
This section features an interview with Enrique Gonzalez, CEO, Intellectual Property Ventures Group (IPVG).