Internet market in the Philippines shows full potential for growth

September 27, 2004

Manila, September 27, 2004 – Result from IDC's latest research indicates that the Internet market in the Philippines achieved commendable growth in the past years and is expected to maintain its sound result in the future. The overwhelming growth can be attributed to the increasing awareness of the value of Internet, the convenience it gives to the users, and the increasing number of applications being made available for online usage.

"In 2003, Internet users in the Philippines stood at 9.4 million, representing a 12% Internet penetration rate and a 38% year-on year growth. The lowering prices of PCs and Internet subscription rates coupled with the heightened market competition compelled the market to achieve this growth," says Ruth Garin, Market Analyst, IDC Philippines.

Although the Internet market is growing, Internet penetration rate is low considering the country's population rate. Another large potential of the country that has yet to be tapped is ecommerce. Some of the issues that impedes the growth of ecommerce and internet market are low PC and Internet penetration rates, security and market maturity and low telephone density. The figure below shows the total number of Internet users in the Philippines against its population.

Meanwhile, while there are a number of key issues that should be addressed to reach the full potential of Internet economy, the country has undoubtedly sat its first foot towards achieving its goal. The Philippines is at the midpoint of attaining its objective. As such, a lot of support from the government as well as from private sector are needed to help sustain the growth of this market.

IDC's recent research, Analysis and Developments of the Internet Market in the Philippines is a study that provides the overview and future outlook of the Internet market in the country. This report discussed the full potential of the Internet market and the barriers that market players should know to be more competitive and meet the service demand of the end-users.

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