Monday, February 25, 2019
Philippine Telecommunications Essay
The Philippine Telecommunications Industry remains to be one of the nigh robust and fastest growing industries in the Philippines. This report volition atom on the pre move state of the elecommunications industry, the regulatory environment, the broadband landscape painting, broadband technologies, and broadband equipment suppliers and investment opportunities. The Philippine telecommunication sector is estimated to have reached USD4. 0 million in annual service provider revenues by end 2009. appendage in the next five years, however, is projected to experience a late down due to the increasing saturation in the industrys two main incisions cellular officious and inflexible line.This growth is estimated o be at a compounded annual growth set up (CAGR) in revenues of about 8% over the next five years, compared to a CAGR of 11% in the last five. Aside from cellular fluid and dogged line, the other segments of the telecommunication sector are on communicate and broadband . For purposes of this report, it will touch briefly on cellular mobile, fixed line and broadcast segments but focus will be on the broadband segment which holds the most promise in regard to growth opportunities given that the cellular mobile and fixed line segments have already reached its saturation argue and is expected to achieve flat or negative growth for 2009.The prevailing telcos are PLDT, reality Telecom, Bayantel, and Digitel. Liberty Telecom is a previously soundless player that is expected to play a bigger role in the industry beginning with 2010. Liberty Telecom recently attracted attention when San Miguel Corporation, the Philippines largest diet and beverage conglomerate, acquired a 32. 7% stake in the previously indolent telecom keep company. Liberty Telecom had previously been under corporate renewal after trading of its stock was suspended in 2005 due to spendthrift volatility.San Miguel recently entered the telecommunication industry by leavening its whol ly-owned subsidiary Vega Telecom, Inc. The company later partnered with Qatar Telecom (QTel) in drawing up plans for re-establishing the market forepart of Liberty Telecom. The Philippine Telecommunications Report 2010 Page 2 Overview of industry landscape and key players Fixed Line Prior to 1993, Philippine Long space Telephone Company (PLDT) had been and continues to be the dominant carrier, being the first to establish a fixed line telecommunications infrastructure nationwide.Fol belittleding the telecommunications liberalization in 1993, coupled with the introduction of the Service Area Scheme (SAS), the competitive environment drastically changed with the entry of 10 new entrants that resulted in lower tariffs and modify fixed line penetration. However as of 2008, relative to the SAS, only 50%i of the fixed line capacity has been utilized with only 3. 9 million fixed line subscribers, or a low fixed line penetration rate of only 4. 32%. i The low fixed line penetration rate i s due mainly to the cellular mobile segment having overtaken the fixed line segment on sum up of faster roll-out and deployment of cellular mobile infrastructure. There are approximately 7. 45 million installed and 4. 89 million subscribed land lines as of 2008iii.Filipinos were mobile phone subscribers. The phenomenal growth was attributed to the popularity of SMS or Text Messaging with a little over 300 million text messages being sent daily as well as the availability of cheaper handsets brought about by the introduction of pre-paid services and over the air loading (electronic loads). The cellular mobile segment has been dominated by three (3) large telcos, namely Globe Telecom, Smart Communications and Sun Cellular with Globe Telecom pioneering the GSM weapons platform followed by Smart Communications and later Sun Cellular.