ICT & Media

Philippines: SMS Prices Continue to Decline, Forcing Operator Consolidation

  • PYR24093
  • 28 Pages
  • March 2013
  • ICT & Media
Summary
The Philippine telecom market generated $6.8bn in service revenue in 2012. Market growth has been limited because of stagnant mobile data revenue, falling voice revenue and limited uptake in broadband services. Unlimited SMS offers and IP-based mobile communications methods are also to blame. However, we expect that growth will return to the mobile data segment as operators readjust their tariffs to confront the shift from SMS messaging to other forms of text communication.

Key Findings
The Philippine telecom market generated $6.8bn in service revenue in 2012. Market growth has been limited because of stagnant mobile data revenue, falling voice revenue and limited uptake in broadband services. Unlimited SMS offers and IP-based mobile communications methods are also to blame. However, we expect that growth will return to the mobile data segment as operators readjust their tariffs to confront the shift from SMS messaging to other forms of text communication. The decline in traditional fixed voice services is also only partly compensated for by the growth in VoIP. The broadband and VoIP markets are forecast to enjoy the strongest CAGRs of 11.4% and 21.6%, respectively. This, in turn, is being driven by investments in higher-speed networks that can also accommodate IPTV services. The entrance of Cignal into the DTH market has also stirred growth in the pay-TV sector by offering very-low-cost services.

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