Philippines Telecommunications Industry Update Quarter 1 2012
$ 1 088
- November 2012
- by Business Monitor International
- 94
Includes 3 FREE quarterly updatesBMI View: The Philippine telecoms market harbours low-term growth opportunities in light of factors
such as the high percentage of prepaid subscribers and comparatively low broadband penetration rate.
At present, the overall industry has not been negatively impacted by the acquisition of Digital
Telecommunications Philippines by the Philippine Long Distance Telephone Company even though
several market segments have become a duopoly.
Key Data:
- Our mobile forecast has been extended to 2017; we expect 116mn subscribers, representing
110% penetration with growth tapering towards the end due to market saturation.
- Mobile solutions are envisaged to continue driving growth in the overall broadband, accounting
for the majority of the 11.207mn subscribers in 2017.
- We expect demand for fixed-line services to continue trending upwards, although we highlight
that a contraction could be due in 2017 in light of pressure from mobile services.
Key Trends And Developments
Smart Communications and Globe Telecom launched commercial LTE services in September 2012.
The former expects 5,000-10,000 subscribers by August 2013, and we expect the sector to take off only
when low-cost LTE smartphones become available.
The National Telecommunications Commission approved the joint use of telecoms spectrum by the
country's leading service providers in October 2012 to reduce the strain on their networks. BMI believes
the move will provide a temporary solution to the burning issue of poor service quality, but could raise
considerable challenges in the long term.
The Philippines was ranked 10th in BMI's Asia Pacific Telecoms
Risk/Reward Ratings with a Telecoms
Rating score of 52.2. Following a stronger than expected expansion in H112, we have revised our fullyear
GDP growth forecast for the Philippines upwards to 5.0% from 4.2%. However, with pervasive
external weaknesses set to undermine the country's previously robust trade outlook, we stress that we
continue to expect headline growth to retreat over the course of H212.
BMI Industry View... 5
SWOT Analysis ... 6
Philippines Wireline (Fixed Line And Broadband) Industry SWOT... 6
Philippines Mobile Industry SWOT... 7
Philippines Political SWOT .. 8
Philippines Economic SWOT 9
Philippines Business Environment SWOT... 10
Risk/Reward Ratings 11
Table: Asia Pacific Telecoms
Risk/Reward Ratings Q113 .. 16
The Philippines ... 17
Industry Forecast Scenario .. 18
Mobile.. 18
Table: Telecoms Sector – Mobile, 2010-2017. 18
ARPU... 20
Table: Philippines ARPU Forecast, 2010-2017 (PHP)... 20
Fixed Line 22
Table: Telecoms Sector – Fixed Line – Historical Data And Forecasts, 2010-2017 22
Internet. 24
Table: Telecoms Sector – Internet – Historical Data And Forecasts, 2010-2017 24
Market Overview ... 26
Mobile.. 26
Regional Perspective 26
Table: Philippines Mobile Market Regional Comparisons, 2011. 27
Key Developments... 27
Mobile Growth. 28
Market Shares.. 29
Table: Philippines Mobile Market Net Additions (‘000), 2010-2012 ... 30
Usage... 31
Table: Mobile Operators’ Prepaid And Postpaid ARPU (PHP) .. 32
Mobile Content/Value-Added Services. 32
Value-Added Services Timeline 35
Table: Selected VAS Services Launched . 35
Mobile Operator Data . 36
Table: Philippines Market Overview .. 36
Table: Smart Communications 36
Table: Globe Telecom. 38
Table: Sun Cellular (Acquired By PLDT) .. 39
Mobile Content 40
Regional Outlook 40
Table: Selected NFC Developments, 2011.. 41
Fixed Line 46
Table: PLDT Fixed-Line Service Revenue Breakdown (PHPmn) ... 47
Broadband .. 49
Table: A Comparison Of Major Broadband Operator Subscriber Figures (’000) ... 49
Submarine Cables... 50
Industry Trends And Developments 53
Networks . 53
Table: Market Developments, 2011-2012 ... 57
Regulatory Environment And Industry Development 60
Philippines: Regulatory Bodies And Their Responsibilities 61
Regulatory Developments 62
Competitive Landscape ... 64
Key Players. 64
Table: Key Players – Philippines Telecoms Sector. 64
Table: Philippines Selected Operators Financial Indicators, 2005-2011 64
Operator Profiles .. 65
Philippine Long Distance Telephone Company (PLDT) . 65
Smart Communications... 69
Globe Telecom 72
Digital Telecommunications Philippines Inc (Digitel) 76
Company Monitor . 79
Table: Vendor Revenues (US$mn) .. 79
Table: Net Sales By Geography (EURmn) .. 80
NSN Selected Asia Activities ... 82
Demographic Outlook .. 84
Table: Philippines' Population By Age Group, 1990-2020 ('000) 85
Table: Philippines' Population By Age Group, 1990-2020 (% of total) ... 86
Table: Philippines' Key Population Ratios, 1990-2020... 87
Table: Philippines' Rural And Urban Population, 1990-2020 . 87
Glossary Of Terms 88
Table: Glossary Of Terms... 88
BMI Methodology.. 89
How We Generate Our Industry Forecasts .. 89
Table: Key Indicators For Telecommunications Industry Forecasts 89
Telecoms Business Environment Ratings . 91
Risk/Reward Ratings Methodology . 91
Ratings System 91
Indicators 91
Table: Ratings Indicators 92
Weighting 93
Table: Weighting Of Indicators... 93
Sources ... 93