Broadband services market continues to advance placing it in the priority list of many local telecommunications players, says IDC

June 15 , 2006

Manila, June 15, 2006 – The country's broadband services market is seen to grow at 23% CAGR in terms of subscribers and at 21% CAGR in terms of revenues over the next five years. IDC expects annual revenues to reach US$239 million in 2010 from US$ 91 million in 2005. Total broadband subscribers, on the other hand, are seen to grow from 165,000 in 2005 to 475,000 by 2010.

According to IDC, initiatives from technology suppliers have been key to spurring interest in wireless broadband among operators and vigilant technology improvement and trials are also key to fast paced development in the wireless broadband space.

"The Philippine telecommunications industry saw the emergence of wireless broadband onto the spotlight in the past few months. Whereas wireless broadband offering in the country was largely limited to LMDS/MMDS-based services, new technologies and network strategies let many service providers to take wireless broadband into serious consideration in 2005. This year, wireless broadband made to the priority list of many local players", says Catherine Foronda, IDC Philippines Associate Analyst.

Wireless broadband utilizing technologies other than traditional LMDS and MMDS are expected to be positioned initially as infrastructure substitute in areas where fixed broadband networks are limited or not present. As price points go down, wireless broadband will begin competing with other broadband services such as xDSL and cable modem.

The graph below presents the broadband services opportunities in the Philippines.

Philippines Broadband Services Subscriber Forecast, 2005 - 2006

IDC maintains that wireless broadband, especially WiMAX and its follow-on services are an integral part of a convergence story that is an eventuality. A few years from now, the market will talk about "narrowband carriers" and "broadband Moreover, market adoption of WiMAX services will depend highly on the development of market tools that surround the technology such as price points, device availability, and distribution channels. The market is expected to move gradually rather than radically.

IDC's latest research No Strings Attached: The Emergence of Wireless Broadband in the Philippines discusses wireless broadband in the country as the emerging focus of competition amongst service providers and equipment vendors. The report provides a brief market background, as well as examples and pricing of recently launched wireless broadband with other competing technologies.

Contact

Chong Chee Kian
Events & Marketing Executive
Tel: +603-2169-7521
Fax : +603-2163-5098
Email:ckchong@idc.com