Tuesday, June 6, 2006 |
News
Telco competition to heat up in next 5 years
We ain't seen nothing yet. If we think the competition among local telecommunications players has already reached its peak, just wait as industry events unfold in the next five years.
In its latest research, entitled : "Philippines Telecommunications Services 2006-2010 Forecast," research company IDC said competition in the telecom market place would continue to heat up.
To prepare, IDC said service providers should continue to strenghten partnerships for content and value-added service (VAS) positioning. Likewise, telecom players were told to 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," Karen V. Rondon, IDC Philippines senior industry analyst, said.
In this type of market, IDC said service providers need to ensure that they strive to offer "high-quality services, including value-added services at affordable rates."
This early, aside from the mobile and fixed-line businesses, competition is starting to tighten in the fields of wireless broadband [Wi-Fi] and the emerging third-generation mobile technology (3G).
Naturally, rivals Globe Telecom, Inc. and Philippine Long Distance Telephone Co. (PLDT) lead.
Last year, IDC said the Philippine telecom market made a remarkable performance with mobile services market as the most dominant segment taking 66% share of the market, which slightly declined from 67% the previous year.
IDC added that although the mobile services market continued to expand in 2005, its growth pace is slower in terms of revenue as compared to its performance in 2004.
The slowdown was blamed on several activities initiated by the operators in the areas of subscriber recognition and pricing rather than to a contraction in market demand.
Meanwhile, IDC said the fixed-line services market continued its recovery in 2005, registering a tremendous improvement considering the market suffered a blow in 2003.
The report also showed that last year provided a milestone for data services, as these finally surpassed voice services in terms of total market revenue contribution.
The growth, IDC described, was driven by the increased strategic focus of operators, the growing market of connectivity and the growing sophistication of end-user telecom requirements combined with various promotions for voice rates in both fixed and the mobile segments.
IDC's latest paper examined the
The paper also gave an overview of the regulatory environment, touching on market liberalization, governing bodies, as well as recent major developments and issues.
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