Slower Growth Seen For RP Telecom Industry—IDC

First posted 06:54pm (Mla time) May 29, 2006
By Alexander Villafania (INQ7.net)

THE PHILIPPINE telecommunications industry will continue to experience double-digit revenue growth in the next four years but the pace will be slower than in previous years, according to a report by the International Data Corporation (IDC).
Growth in 2005 was 66 percent, slower than the 67 percent registered in 2004, IDC's Philippine Telecommunication Services 2006-2010 Forecast revealed.

The study attributed the slowdown in 2005 to subscriber recognition and pricing activities by telecommunications firms rather than to a contraction in market demand.

IDC also stated that the fixed-line services market continued to recover in 2005 due to growth in the data services market, which surpassed voice services in terms of contribution to market revenue.

Among other growth factors in the fixed line business were the growing market for connectivity, the sophistication of end-user telecom requirements, as well as new promotions for voice rates.

Karen Rondon, IDC Philippines’ senior analyst for telecommunications services, said competition among telecommunications players would be more intense in the coming years.

She urged market players to continue strengthen partnerships for content and value-added services positioning and be more flexible in responding to the changing business dynamics of their customers.

"As price points continue to decline, service providers can no longer be dependent on incomes generated from subscriptions alone but also have to focus on offering value-for-money services.
As such, providers will have to ensure that they strive to offer high-quality services, including VAS at affordable prices," Rondon said.