By John Mark V. Tuazon
Computerworld Philippines
June 17, 2010

SINGAPORE – The Philippines continues to lag in deployments of next-generation broadband technologies such as fiber-optic broadband which enable services such as IPTV, an executive from a global consortium of telecommunications industry players revealed Wednesday.

While the rest of the world continues to enjoy high broadband speeds and television shows delivered through IP network infrastructures, the Philippines paces at a dismal rate, with only approximately two million broadband subscribers reported in 2009, mostly on DSL lines.

In a recent report by the Broadband Forum presented during CommunicAsia 2010, Robin Mersh, chief operating officer of the consortium, revealed that global broadband lines now amount to 484 million lines, bringing a 3.12% growth in the first quarter of 2010. This represents a 12.41% increase of broadband lines in a 12-month cycle.

Asia brought an outstanding 53% of the total broadband lines added in the quarter, with China accounting for 45% of lines added globally in the first quarter of 2010. This represents a “remarkable growth” for the region, according to Mersh, where China looks out to be a powerhouse among its neighboring countries.

The USA, meanwhile, seconds China’s over 112 million subscribers, with approximately 87 million subscribers in the Western country. Japan, Germany, France, and the United Kingdom follow, as well as South Korea, Italy, Brazil, and Russia, respectively.

The Philippines, according to a 2008 report by Strategy Analytics, remains at the bottom heap of the pack at 53rd place, with only 5% broadband penetration in the country.

IPTV Prospects
Of the total broadband lines worldwide, 64% remain to be deployed through DSL, 20% through cable, and only 13% through Fiber. While Fiber is not a main requirement for the rollout of IPTV, Mersh said “it makes IPTV inevitable.”

The prospects of IPTV happening in the Philippines any time soon may be a bit dicey, especially since the two major broadband players—PLDT and Globe Telecom—have started field testing of fiber-to-the-home service offerings only last year.

“In countries where IPTV numbers are pretty good—such as in France—they have a lot of fiber deployments, and their service providers are very creative,” Mersh explained.

Those countries that do not see marked growth, according to Mersh, have commercial arrangements (of service providers), demographics, and regulation regimes to blame. “It has nothing to do with the [current] capabilities of their networks,” he emphasized.

Currently, IPTV penetration worldwide sits at a stable 7.7% of total broadband lines, a significant rate, according to Mersh, given the established positions of cable, DTT, and satellite alternatives in most markets.

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