INDUSTRY NEWS

ICT Investments to hit $ 3.4B

(September 2008)Telecommunications spending in the Philippines is seen to reach $3.4B in 2008, with $2.5B expected to be spent for information and communications technology (ICT).
The International Data Corp. (IDC) reported that the country is starting to show heightened ICT awareness in both the consumer and commercial segments.

It added that while some portions of the country have yet to fully adopt or implement IT infrastructure, gradual steps are being taken.

On the back of relatively favorable socio-economic and political landscape, 2007 was a good year for the country’s ICT market, characterized by innovative business models, offerings, product portfolios, redefined primary objectives and business strategies, and expanded ICT spending and areas of business opportunities,” the IDC said.

For instance, the Philippine Long Distance Co. (PLDT) has set aside a capital expenditure budget of P25.4B this year, of which 59% or P15.2B will be used for the wireless business, 36% or P8.8B for fixed line, and 6% or P1.4B for ICT.

Ayala-controlled Globe Telecom, for its part, has earmarked some $400M-$450M in capital expenditure this year to enhanceits mobile network qualify and coverage, grow its broadband footprint, and improve the resiliency of its internet network.

Meanwhile, Gokongwei-owned Digital Telecommunications Phils. Inc. (Digitel) is spending around $300M this year for the expansion of its cellular, fixed line, and broadband networks.

ICD forecasts a sound ICT market performance for the whole of 2008. It identified expansions in areas outside the National Capital Region (NCR), intensificationS of consumer consumption, and optimization of business operations and perfpormance.

The ICT market from the emerging economies of Asia –Bangladesh, Sri Lanka, Pakistan, Malaysia, Thailand, Philippines, Indonesia, Viet Nam, China, and India – was valued at $96B in 2007 and is expected to reach nearly $144B by 2011.
 

   




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