Nokia sees room for more cellphone growth in RP

While the Philippine market for cellular phones is nearing the maturity level with 41 percent of the population already owning mobile handsets, industry leader Nokia Philippines expressed confidence that there is still room for growth as more Filipinos start replacing their existing phones with new handsets.

Nokia Philippines country general manager Parikshit Bhasin noted that while 2005 was not the greatest of years in terms of subscriber add-ons with the market slightly growing from 33 million subscribers in 2004 to 35 million last year or a cellular penetration rate rising from 39 percent to 41 percent, the replacement market in the Philippines continues to grow.

He said he expects the growth this year to come mainly from the provincial towns, which has also been the focus in terms of marketing efforts of leading mobile operators Smart Communications and Globe Telecom.

Bhasin revealed that the replacement market growth in the Asia-Pacific region will increase exponentially from 2005 to 2007 "and it is clear that digital convergence and 3G are the key drivers for this growth."

"We are increasingly seeing more technologically advanced features such as cameras, music players and support for mobile e-mail being introduced across affordable mid-tier category. Research shows that Asian consumers, in particular, have a stronger appetite for newer, technologically advanced devices and are more likely to be earlier adopters for such devices," he said.

Bhasin added that on the 3G front, WCDMA is gaining mass attraction in the market with over 45.7 million subscribers globally at the end of 2005. "We are confident that as more 3G-enabled devices are being introduced to the affordable mid-tier segment, the uptake for WCDMA services will increase sharply," he noted.

He emphasized that as a strong market leader driving 3G and the convergence trend, Nokia is well positioned to capture a leading share of this market segment in the Asia Pacific with its expanding portfolio of converged mid-tier products.

"In the Philippines, camera phones have become aspirational (accounting for around 60 percent of phones sold while 3G will become a reality and a differentiation. For this year, we will continue to work closely with the operators to develop 3G, undertake a retail and care expansion, and maintain Nokia’s status as a most preferred brand," Bhasin pointed out.

Smart and Globe have began a massive rollout of their respective 3G (third-generation mobile communications technology) networks. Smart’s 3G service had its soft launch last Feb. 14. Digitel, which was also granted a 3G frequency, is also preparing to start the five-year roll-out of its 3G network. Considered a killer application of 3G is video calling.

Another trend which Bhasin expects the Philippines to catch up to soon is mobile television. Nokia officials said Smart and Globe have both expressed interest in offering mobile TV to their subscribers, but the National Telecommunications Commission (NTC) has yet to come up with regulations on the issuance of license to mobile TV service providers.