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lovephileo's review
Investment Sector: IPO / Secondary Offering Submitted by Lovephileo
, WEB CONSULTANT / PASTOR
at LIGHT OF THE WORLD CHRISTIAN CENTER
about 1 year ago Tags: broadband wireless globe PLDT Add Tag |
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You have heard the BRIC countries, and now the "Next Eleven" - Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, south Korea, Turkey and Vietnam which they will be bringing the next wave of radical growth in emerging markets.
One of the darling developing economies is the philippines. And one of the best game to play in its growing market is through the RP broadband industry where broadband subscribers was around 945,000 in 2007 and is expected to grow to just under 4 million by 2012, the internet sector is well positioned for growth, with a deregulated market, strong government support for IT development and an increasing internet savvy population.

The wireless broadband market is growing rapidly worldwide and this means that there is a lot of potential for new revenue from this busines.

In the Philippines, PLDT - the wireless broadband subscribers surpass DSL subscribers . The company's DSL services generated P1.3 billion in revenues during the first quarter of 2008, and now accounts for 51% of the PLDT Group broadband and internet revenues for the same period. Total broadband revenues increased 51% to P2.5 billion. This figure represents about 7% of the total services revenues of the company. PLDT currently controls about 70% of the local broadband market,which includes households, small and medium enterprises and corporate acounts. The company is using its third generation (3G) mobile network as a vehicle to offer wireless broadband services in the country. It is the leading telecommunications service provider in the Philippines. It has common shares listed on the Philippine Stock Exchange and ADRs listed in the New York Stock Exchange. It has one of the largest market capitalizations among Philippines listed companies. It has developed the country's most extensive fiber optic backbone, cellular, fixed line and satellite networks.
Globe Telecom Inc, the Philippines second largest mobile operator/provider of digital wireless communication service in the Philippines using a full digital network based on the Global System services. Broadband services continued to be a growth driver for the company, with revenues going up by more than half to PHP 777 million in the first six months. It plans to make further investments in its woreless broadband services, based mainly on its 3G network. Following the completion of its technical trials for WIMAX, the operator is studying the various vendor alternatives with the intention of commercially deploying service by the end of 2008. This could see the operator become the first in the country to offer such services.
Meanwhile, the global wireless broadband industry revenues is predicted to hit $784 billion, a whopping 24 times (2400%) by the year 2015 where 50% of that growth will be in developing countries. The report predicted the number of wireless broadband customers will hit 2.1 billion by then, with developing nations expected to make up 57% of that.
Cellular technologies will dominate wireless broadband services, with 20 times as many users as WiMaX by the end of 2015. WiMax will be squeezed from developed markets by fixed and cellular broadband services and will serve just 98 million customers worldwide, of which 92% will be in developing regions.
In Asia, demand for fixed broadband is surging. Broadband subscriptions will cross 171 million by the end of 2008. The expected growth represents a year-on-year growth of 31.5% and a household broadband penetration rate of 19.7% across all the countries in the region. Of the 13 Asia-Pacific countries, Philippines is ranked 11th with a household penetration rate of 3.57% in 2007. The number of subscribers in the country is expected to reach close to one million at the end of this year, for a year-on-year growth of about 46%. Frost & Sullivan survey expects the broadband subscriber base in the country to grow at a CAGR (compound annual growth rate) of 19% from 2008 to 2013.
The top five Asia-Pacific countries with the highest household broadband penetration rates in 2007 are South korea (90%), Hong Kong (83.8%), Taiwan (76.8%), Singapore (73.1%) and Australia (63.2%). Japan has a 57.8% penetration rate, while the remaining seven markets have household broadband penetration rates of less than 50%. India and Indonesia registered the lowest penetration rates at 1.4% and 0.57%, respectively.
The surge in demand for broadband in Asia-pacific is driven by the growing popularity of video-on-demand, multi-player online games, video content sharing and social networking sevices such as You Tube and facebook, as well as the aggressive push by operators to offer innovative bundled tripple-and quadruple-play services.
The ecosystem is growing - in developed countries, there are pockets where coverage is not good. operators are geared to provide standard broadband and invest in this emerging industry. This is the good time to invest. A good field to invest in or to any technology funds that use this market. This wireless technology will be a nice market at the ground level for a long term.
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