While the telecom sector in the Philippines has
witnessed considerable investment and business activity since deregulation, the
market has continued to fall short of its full potential. Nevertheless, there
certainly has been a lot of activity, with the market often finding a different
direction from what was envisaged. The country’s mobile market has been
particularly energetic for some years, for example, running on what could only
be described as a genuine revolution in the development of SMS as an effective
communications service. Even more significant ultimately has been the recent
expansion in broadband internet. Broadband is finally building a healthy
subscriber base, boosted by the considerable presence of mobile broadband
services in the mix of the various platforms available. There has also been
good progress in the rollout of optical fibre infrastructure, although not on
the national scale envisaged. In the meantime, the larger operators are
building IP-based Next Generation Networks. Whilst the global financial
problems had earlier presented some real challenges for the local telecom
market, the negative impact seems to have been put well behind.
By early 2015 the number of mobile telephone
subscribers had grown to around 113 million, with mobile penetration of 114% in
this country of almost 100 million people. The Philippines mobile market
initially took off in a big way back in 2000. It did so with the help of the
surprising performance of SMS in the Philippines. At its peak, around two
billion SMS messages were being sent every day in the Philippines. Although
this market has eased considerably, the country reportedly generates the
largest SMS volume in the world. An indication of the constant change in the
mobile market has been the way the Philippines SMS market has started to
decline as internet-based social networks have begun to impact dramatically on
SMS usage. There is a major transition taking place as faster, new generation
mobile networks become the norm.
Compared with most of its Asian neighbours, the
Philippines has moved slowly on the adoption of internet. Nevertheless, this
situation is changing rapidly. Of the estimated 45% of the population that made
up the internet-user population coming into 2015, a large proportion of these
were already using a high-speed broadband connection to go online. In early
2015 available statistics suggested that more than 80% of all internet
subscriptions were broadband-based, representing a major shift in the broadband
presence in the Philippines in recent years. Broadband subscription penetration
as a proportion of the population was still only around 9%.
The country’s fixed-line subscriber penetration has
remained essentially stagnant, even suffering decline at times. It has
certainly been a long period of difficulties 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 just 3% in 2015;
only a little more than half of all Philippine towns and cities had a basic
fixed telephone service by that stage.
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