Philippine ICT market to enjoy robust 2008

PHILIPPINES--The new year will bring more growth across various ICT segements in the country, including the areas of government projects, consumer consumption and wireless deployments, predicts IDC.

In its report released today, the research house said "expansion, optimization and consumer dynamism" will characterize the local ICT market in 2008.

The country's mass-market base would serve as a stimulus for an increase in consumer consumption, particularly in the mobile device space, said Jubert Daniel Alberto, research manager at IDC Philippines.

IDC enumerated 10 factors that would likely shape the industry this year, with ICT spending topping the list. Overall IT spending will exceed the US$2 billion-mark in 2008, reaching US$2.03 billion, said the research firm.

The active involvement of the government in ICT would play a major role in improving the local economy. "The presence of solid economic fundamentals and strong government commitment towards ICT development and manpower training will enable Philippines to become a significant player in the global information society," IDC said.

Third, IDC said an increase in ICT developments in regions outside of Metro Manila would encourage vendors to invest in more sales and marketing efforts to capture new market opportunities. It cited Calabarzon, Central Luzon, Central and Western Visayas, Northern Mindanao and Davao Region as the regions where ICT activities would significantly increase this year.

IDC said it also expects the concept of "green IT" to make inroads in the country, making business operations more productive, efficient, and environmentally friendly.

The expected explosion of the notebook market in 2008 would also help the ICT grow, the research firm said.

"Improvements in the wireless infrastructure have led to the growing availability of wireless technology in areas such as schools, malls, coffee shops and restaurants. These developments have benefited end users immensely," IDC said.

Other trends projected to contribute to the development of the Philippine ICT market include the increasing security software adoption among SMEs (small and midsize enterprises), the strong growth in the number of multimedia devices and the influx of consumer services, particularly multimedia offerings in the forms of digital and audio content.

IDC said it also anticipates the interest level in 3G to increase in 2008, although adoption will be faster in the devices space than in the services segment.

And lastly, the research firm said continuous broadband demand in the country will narrow the gap between wired and wireless technologies.

Melvin G. Calimag is a freelance IT writer based in the Philippines.