Philippine telecommunications services market is estimated to reach $7.3bn in 2010, and continue to grow at a compound annual growth rate (CAGR) of 7.9% during the next five years, according to a new report from Pyramid Research.
The research firm said that Broadband will be the main driver behind the growth, with fixed broadband service revenues increasing at a 15.7% CAGR and mobile data revenue increasing at a CAGR of 10.7% between 2010 and 2015.
The report revealed that declining voice and SMS prices are putting fixed and mobile service revenue under pressure, causing mobile and fixed operators to concentrate on broadband as the new revenue stream.
Pyramid senior analyst Tae-hyung Kim said that the broadband market, driven by the continued proliferation of cable and fixed wireless platforms, including WiMax, would see revenues more than double, from $669m in 2010 to $1.4bn in 2015.
However, the research firm said that 2010 will be another tough year for operators in Taiwan, with regulator NCC mandated that Taiwan’s operators must cut their fixed monthly rents by 5.7% and their mobile 2G and 3G services by 5.9%, in an effort to provide some reprieve to consumers badly hit by the economic crisis of 2009.
Pyramid Research analyst Daniel Yu said that they expect mobile broadband to grow at a CAGR of 15% between 2010 and 2015, reaching $352m in revenue at the end of the forecast period. Migration to fiber, high-speed 20-Mbit/s+ connections, IPTV, and HD will fuel fixed broadband growth over the next five years, enabling the market to generate $1.8bn by 2015.
