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Telcos must offer more
value-added services
THE performance of domestic cellular service providers is still
advancing but at a slower pace that may point to a future of even
more decline. What to do?
“As price points
continue to decline, service providers can no longer be dependent
on incomes generated from subscriptions alone but also have to
focus on offering value-for-money services. As such, they will
have to ensure that they strive to offer high-quality services,
including value-added services [VAS] at affordable prices,”
according to Karen V. Rondon, senior analyst of IDC Philippines.
IDC is the premier global
provider of market intelligence, advisory services and events
for the information technology, telecommunications and consumer
technology markets. It is a subsidiary of IDG, the world’s
leading technology media, research and events company.
Based on IDC’s
latest research, “Philippines Telecommunications Services
2006-2010 Forecast”, although the mobile services market
continued to expand last year, its growth had been slower in terms
of revenue as compared to the previous year. “The Philippines
telecom market made a remarkable performance in 2005 with mobile
services market as the most dominant segment, taking 66-percent
share of the market pie. Such a market share, however, slightly
declined from last year’s 67 percent.”
As the industry continues
to be even more competitive, IDC urges carriers to strengthen
partnerships for content and VAS positioning, and be more flexible
in responding to the changing business dynamics of their customers.
On the fixed-line services
market, the IDC said its recovery continued in 2005. It registered
a “tremendous improvement,” considering the market
suffered a blow in 2003 because of the glut in fixed lines brought
about by the slow take-up of subscribers.
The report also shows
that year 2005 provided a milestone for data services when these
finally surpassed voice services in terms of total market revenue
contribution. L. Lectura
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