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).

Articles from this Chapter

Overview

Playing catch up: Varied segments flourish, as infrastructure and internet use expand
OBG
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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…

Interview

OBG talks to Enrique Gonzalez, CEO, Intellectual Property Ventures Group (IPVG)
OBG
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Interview:Enrique Gonzalez What is the forecast for growth in the internet population in the Philippines, and what opportunities does this present for companies? ENRIQUE GONZALEZ: The demographic situation in the Philippines is quite unique in that it is heavily skewed towards a young population that is becoming gradually more affluent. It is widely anticipated that there will be unprecedented growth in the internet population of the country, set to increase from the current 30m to roughly…

Overview

An evolving market: The focus moves to new technologies and services as mobile penetration nears 100%
OBG
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Complicated and continuously evolving, the local telecommunications market ended 2011 with only two mobile players in operation. The current state of the industry is the result of a number of mergers and acquisitions that culminated in 2011 with the absorption of the country’s third-largest mobile operator, Digitel’s Sun Cellular, by the Philippine Long Distance Telephone Company (PLDT), the market leader. Despite the lingering effects of the price war between the major mobile firms, which…

Analysis

Power play: Consolidation creates a duopoly in the mobile market
OBG
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The merger of two of the country’s three remaining telecoms operators into a single market-dominating force in 2011 marked the latest stage in the consolidation of the sector. With just two providers left from six just two decades ago, the country’s mobile market is now effectively a duopoly. ACQUISITION: The union was initiated in March 2011, when the country’s largest telecoms player, Philippine Long Distance Telephone Company (PLDT), agreed to purchase a 51.6% controlling stake in…

Analysis

In limbo: Reorganisation of oversight agencies creates questions
OBG
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The regulatory structure of the telecoms sector entered into a state of flux in 2011, a reflection of the dynamic market that the government is tasked with overseeing. This uncertainty is rooted in the reorganisation of the Commission on Information and Communications Technology (CICT), to which the primary regulator, the National Telecommunications Commission (NTC), answers. Under a bill passed by the House of Representatives in December 2011, the power and responsibilities of the CICT will…