Convergence and realignment to influence Philippine ICT market in 2006, predicts IDC

January 09, 2006

Manila, January 09, 2006 – At its annual look at the year ahead, IDC predicts that industry convergence and realignment will greatly characterize the Philippine ICT market in 2006, along with innovations on business models, product offerings and services, all in the name of a better business responsiveness to changing client needs and behavior.

Entitled Top Key Trends in the Philippine ICT Market for 2006 , the document provides key developments and trends in the local ICT market in the Philippines in 2006. According to IDC, three main themes that cut across the ICT segments will characterize next year's key trends in the country's ICT market. These are the following:

•  Rise in consumer devices and wireless connectivity

IDC predicts that the higher prevalence of lifestyle gadgets and more pervasive wireless connectivity will set the mood for this year's ICT market. Digitization, mobility, and convergence will push the usage of consumer devices, as well as drive the wireless network requirements for both consumer and enterprise segments.

•  New business models and continuing innovations in product and offerings

In 2006, IDC believes that modularity and business responsiveness requirements due to the rising need to optimize cost and achieve business efficiency would bring about new enterprise models. Along with this, innovations such as the introduction of complete IT and communications packages, as well as continuing developments in BPO and Internet café business models, will highlight this year.

•  Industry opportunity

IDC forecasts that the country's total IT spending will continue to bring about business opportunities for vendors and service providers. These ICT market players would need to jockey for key business innovations through, for example, new types of relationships with both channels and customers, in order to propel long-term growths and prevent getting swamped by the industry's changing dynamics.

Jubert Daniel Alberto, senior analyst, states that, "Vendors would need to verticalize go-to-market approach, focus on strategic partnerships, tie-ups and customer retention, in order to capture the needed opportunities as the country is headed to a considerable growth in terms of the total IT and telco spending in 2006."

Figure 5 shows the expected proportion of the broad IT segments to total IT spending in 2006.

N = US$1. 56 billion

Note: Figure in constant 2004 exchange rate.

Source: IDC Asia/Pacific Blackbook, October 2005

For more information about purchasing the research, please contact Hazmi at +603-2169-7526 or hyusof@idc.com. For press enquiries, please contact Stephen Chong at +603-2169-7521 or ckchong@idc.com.

Contact

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

Jubert Daniel Alberto
Senior Analyst
Tel:+632-889-7063
Fax:+632-884-2399
Email: jalberto@idc.com