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Philippines - Telecoms, Mobile, Broadband and Forecasts


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Broadband internet surge in the Philippines continues

The mobile segment of the telecom market in the Philippines has slowed significantly after years of solid growth. The slowing reflected, among other things, a general downturn in the Philippine economy. Although the economy certainly picked up in 2010/2011, growth in mobile subscribers has continued at a generally slower pace, with mobile revenue growth also down in what has been a highly competitive market. Into 2012 the Philippines had almost 95 million mobile subscribers. Penetration had eased past the 100% milestone by that stage and continued modest growth of between 5% and 10% looked likely.

As already observed the economy will be an important factor in the continued expansion of the Philippine telecom sector. The recession in the US, its main trading partner, had hit exports hard in 2009 but the country seemed to have overcome this setback. Following the down year in 2009, the country&rsquo ; s GDP growth bounced up again in 2010 reaching 7.3% (matching the 31-year high of 7.3% in 2007). It then fell back to 4% in 2011. Annual growth in the range 4%-5% looked likely in the short term at least. In the meantime, the telecom industry shifted to an overall pattern of more modest growth, with the core mobile services business looking more like it was approaching maturity and the fixed-line market stagnating.

Despite mobile expansion easing, the operators were continuing to talk positively about the market&rsquo ; s potential and it was the mobile segment that remained central to the wider development of the country&rsquo ; s telecom sector. Although the sector was facing challenges there was clearly some energy remaining in it as the major operators rolled out their Third Generation (3G) mobile offerings and looked for improved revenue streams.

In the meantime the brightest news has been the growing interest in broadband services, with the major players in the local telecom market starting to invest heavily in the expansion of broadband access and looking at both wired and wireless broadband platforms to provide coverage. The demand for faster internet access was increasing rapidly by 2012. Almost 90% of all internet connections were already broadband. Overall broadband penetration remains relatively low, however, with only around seven broadband services for every 100 people in the country by the start of 2012.

The country&rsquo ; s fixed-line subscriber penetration has remained essentially stagnant, even slightly declining. It has certainly been a long period of difficult times for the fixed-line operators. Despite the concerted effort of both the government and the operators to expand the national fixed network, fixed-line teledensity stood at less than 4% in 2011 ; only a little more than half of all Philippine towns and cities had a basic telephone service.

Key highlights

Growth in mobile subscribers in the Philippines has slowed considerably by 2012 but had still managed to grow by 16% in 2010 followed by 9% in 2011 ;
Growth in 2012 was likely to be less than 10% ;
Mobile penetration had passed the 100% milestone ;
Although the SMS market has peaked, Filipinos were still sending almost two billion SMS messages every day by early 2012 ;
The country remained a global leader in SMS volumes and usage levels ;
In the meantime, Social networking websites were becoming increasingly popular and changing the shape of the telecoms market ;
Broadband Internet access in the Philippines had witnessed a five year surge in subscriber growth ;
There were an estimated seven million broadband subscribers by end-2011 ; however, this still only represented around 7% of the population ;
The fixed-line market had lost direction, with no growth expected in the short term ;
The Philippine telecom sector continues to be an important element in the local economy, contributing over 10% to the country's GDP.

Philippines:

- key telecom parameters ; 2011 - 2012
Category
2011
2012 (e)

Fixed-line services:

Total No. of subscribers
3.2 million
3.1 million
Annual growth (e)
Fixed-line penetration (population)
3.4%
3.3%

Internet services:

Total No. of fixed internet subscribers
3.4 million
4.5 million
Annual growth
36%
32%
Fixed internet penetration (population)
3.6%
4.6%
Internet household penetration
16%
18%

Mobile services:

Total No. of subscribers
93.7 million
98.0 million
Annual growth
9%
5%
Mobile penetration (population)
100%
103%
(Source: BuddeComm)


1. Key Statistics and Country Overview
1.1 Country overview
1.1.1 Background
1.1.2 Economy
2. Telecommunications Market
2.1 Overview
2.2 PLDT’s acquisition of Digitel
2.3 Background to development
2.4 Domination of market by mobile telephony
3. Regulatory Environment
3.1 Regulatory authorities
3.1.1 National Telecommunications Commission (NTC)
3.1.2 Commission on Information and Communications Technology (CICT)
3.2 NTC outlook
3.3 Regulatory developments
3.3.1 Proposed Department of Information and Communications Technology (DICT)
3.3.2 Interconnection
3.3.3 Release of spectrum
3.3.4 PLDT’s foreign ownership breach
3.3.5 Regulator’s fees
3.3.6 Broadband speed
3.3.7 Interconnection fees
3.3.8 SMS and taxation issues
3.3.9 Voice over Internet Protocol (VoIP) services
3.4 Telecom sector liberalisation
3.5 Foreign ownership
4. Major Fixed Network operators
4.1 PLDT
4.1.1 Overview
4.1.2 Operational statistics
4.1.3 Development
4.1.4 Background
4.2 Globe Telecom (Innove)
4.2.1 Overview
4.2.2 Operational statistics
4.2.3 Background
4.2.4 Development
4.3 Bayantel
4.3.1 Overview
4.3.2 Financial difficulties
4.3.3 Fixed-mobile services
4.4 Bell Telecom
4.5 Digitel
4.6 Eastern Telecommunications Philippines Inc (ETPI)
4.7 PhilCom
4.8 Liberty Telecom
5. Telecommunications Infrastructure
5.1 Overview
5.2 National infrastructure
5.2.1 Overview
5.2.2 Fixed-line statistics
5.2.3 Background: Service Area Scheme (SAS)
5.2.4 National fibre optic networks
5.2.5 Next Generation Networks (NGNs)
6. Broadband Market
6.1 Broadband market overview
6.2 Background
6.3 Broadband and Internet statistics
6.4 Regulatory issues
6.4.1 Broadband quality
6.4.2 Minimum internet speeds
6.4.3 Hackers
6.4.4 IPv6
6.5 National Broadband Network (NBN)
6.6 PC market
6.7 Broadband platforms
6.7.1 Digital Subscriber Line (DSL)
6.7.2 Cable modem
6.7.3 Fibre to the Home (FttH)
6.7.4 Wireless broadband
6.8 Broadband over power lines
6.9 Internet market overview
6.9.1 Role of Internet in the Philippines
6.9.2 Cloud computing
6.9.3 Social networking
6.9.4 Internet exchanges
6.9.5 Internet regulations
6.9.6 Commission on Information and Communications Technology (CICT)
6.9.7 Gearing Up Internet Literacy and Access for Students (GILAS)
6.9.8 E-commerce
6.10 Major broadband service providers and ISPs
6.11 Overview
6.11.1 PLDT
6.11.2 Digitel
6.11.3 GlobeNet
6.11.4 Bayantel
6.11.5 Broadband Philippines
6.11.6 Meridian
6.11.7 Philweb.com
6.11.8 EasyCall
6.12 Internet via satellite
6.13 IP networks
7. Digital Media / Digital Economy
7.1 Overview of broadcasting market in the Philippines
7.1.1 Market development
7.1.2 Regulatory developments
7.1.3 PLDT
7.2 Digital TV services
7.2.1 Broadband TV (IPTV)
7.2.2 Cable and pay TV
7.3 Free-to-Air (FTA) broadcasting
7.3.1 ABS-CBN Broadcasting Corporation
7.3.2 GMA Network Inc
7.3.3 Associated Broadcasting Corporation (ABC): TV5
7.3.4 Other FTA broadcasters
7.4 Satellite TV
7.4.1 Direct-to-Home (DTH) services
8. Mobile Communications
8.1 Overview of the Philippines’ mobile market
8.2 Mobile operators
8.3 Mobile statistics
8.4 Mobile ARPU
8.5 Regulatory issues
8.5.1 Compulsory SIM registration
8.5.2 Per-pulse billing dispute
8.5.3 Mobile Number Portability (MNP)
8.5.4 Spectrum User Fees (SUF)
8.5.5 SMS-related issues
8.5.6 ‘Illegal’ use of frequencies
8.6 Mobile technologies
8.6.1 Third Generation (3G) mobile
8.6.2 Long Term Evolution (LTE) /Fourth Generation (4G) networks
8.6.3 AppBridge project
8.7 Mobile voice services
8.7.1 Prepaid cards
8.8 Mobile data services
8.8.1 Short Message Service (SMS)
8.8.2 Multimedia Message Service (MMS)
8.8.3 Mobile TV
8.9 Mobile content and applications
8.9.1 Overview
8.9.2 Content development
8.9.3 M-commerce
8.10 Major mobile operators
8.10.1 Overview
8.10.2 PLDT’s acquisition of Digitel
8.11 Philippine Long Distance Telephone Company (PLDT)
8.11.1 Smart Communications
8.11.2 Talk ‘N Text (TNT) (formerly Piltel)
8.11.3 Red Mobile (CURE)
8.12 Globe Telecom
8.12.1 Overview
8.12.2 Developments
8.12.3 Background
8.12.4 3G/4G services
8.13 Digitel/Sun Cellular
8.13.1 Overview
8.13.2 Background
8.13.3 Developments
8.14 Other operators
8.14.1 Extelcom
8.14.2 Bayantel
8.14.3 BellTel
8.14.4 Next Mobile
9. Forecasts
9.1 Forecasts – fixed-line market – 2015; 2020
9.2 Forecasts – Internet services – 2015; 2020
9.3 Forecasts – mobile services – 2015; 2020
9.3.1 Notes on scenario forecasts
10. Glossary of Abbreviations
Lists
Table 1 – Country statistics – 2011
Table 2 – Telephone network statistics – 2011
Table 3 – Internet user statistics – 2011
Table 4 – Broadband statistics – 2011
Table 5 – Mobile statistics – 2011
Table 6 – National telecommunications authorities
Table 7 – Philippines’ GDP real growth rate – 2006 - 2013
Table 8 – PLDT fixed-line subscribers – 2001; 2005 - 2011
Table 9 – Globe Telecom fixed-line subscribers – 2002 - 2011
Table 10 – Globe Telecom broadband subscribers – 2007 - 2011
Table 11 – Globe Telecom broadband subscribers - wired v. wireless - 2011
Table 12 – Globe Telecom broadband subscribers – 2011
Table 13 – Bayantel’s fixed-line subscribers – 2000 - 2001; 2006 - 2011
Table 14 – PLDT fixed-line subscribers – 2001; 2007; 2010 - 2011
Table 15 – Fixed lines in service and penetration – 1994 - 2012
Table 16 – Fixed lines – proportion of urban and residential subscribers – 2007 - 2011
Table 17 – Fixed lines installed versus lines in operation – 1995 - 2011
Table 18 – Total SAS lines installed by operators by target date
Table 19 – Fixed broadband subscribers – 2001 - 2012
Table 20 – Wireless broadband subscribers – 2009 - 2011
Table 21 – Broadband subscribers and households – June 2011
Table 22 – Broadband subscribers by major service provider – 2008 - 2011
Table 23 – Internet users – 1996 - 2012
Table 24 – Internet subscribers – 1996 - 2012
Table 25 – Overview of Internet market – 2010
Table 26 – International Internet bandwidth – 2000 - 2011
Table 27 – Percentage of households with computer – 2002 - 2011
Table 28 – DSL subscribers – 2001 – 2011
Table 29 – Number of registered ISPs – 2001 - 2011
Table 30 – PLDT broadband subscribers – 2005 - 2012
Table 31 – PLDT’s DSL subscribers – 2001 - 2012
Table 32 – PLDT’s wireless broadband subscribers – 2007 - 2012
Table 33 – Smart’s ‘SmartBro’ subscribers – 2005 - 2012
Table 34 – Digitel’s broadband subscribers – 2011 - 2012
Table 35 – Globe Telecom’s broadband subscribers – 2007 - 2011
Table 36 – Globe Telecom’s DSL subscribers – 2009 - 2011
Table 37 – Globe Telecom’s wireless subscribers – 2009 - 2011
Table 38 – Key broadcasting statistics - 2011
Table 39 – Mobile subscribers and penetration rate –1994 - 2012
Table 40 – Mobile market share by operator – 2011
Table 41 – Mobile services revenue – 1993 - 2011
Table 42 – Total SMS messages – 2003 - 2011
Table 43 – Mobile market share - major operators – 2011
Table 44 – Mobile operators, subscribers and annual change – 2011
Table 45 – Mobile subscribers by operator – 2009 - 2011
Table 46 –PLDT mobile subscribers – 2006 - 2012
Table 47 – PLDT – monthly ARPU by operator/contract type – March 2012
Table 48 –Smart mobile subscribers – 2010 - 2012
Table 49 – Smart – prepaid and postpaid subscribers – March 2012
Table 50 – Smart – prepaid and postpaid ARPU – March 2012
Table 51 –Talk ‘N Text subscribers – 2002 - 2012
Table 52 – Red Mobile (CURE) subscribers – 2009 - 2012
Table 53 – Globe Telecom subscribers – 2001 - 2011
Table 54 – Globe Telecom - subscribers prepaid v. postpaid – 2011
Table 55 – Digitel subscribers – 2005 - 2012
Table 56 – Digitel – prepaid and postpaid subscribers – March 2012
Table 57 – Forecast fixed line subscribers – 2015; 2020
Table 58 – Forecast Internet subscribers – 2015; 2020
Table 59 – Forecast mobile subscribers – 2015; 2020

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