Mobile phone users seen hitting 40M; growth eases

The National Telecommunications Commission (NTC) estimates the number of cellular phone subscribers in 2006 to have reached 40 million but also expects slower growth in 2007 as the market becomes increasingly saturated. "The industry has become saturated. Compared to 1999 to 2002, where mobile phone subscribers grew at a double digit per year," said Edgardo Cabarios, head of NTC's common carrier and authorization department. The estimated 40 million cellular phone subscribers is still a marked increased from the 34.8 million recorded in 2005, which represented a 41.3 percent penetration rate. Philippine Long Distance Telephone Co. (PLDT) chairman Manuel Pangilinan also earlier said that the increase in new mobile phone subscribers’ in 2007 is expected to slow down. PLDT owns Smart Communications, which has the largest cellular phone subscriber base. “I think it’s (going to be) slightly to be lower. Our budgeted subscriber number for next year has got to be lower than this year. You know, penetration rate has already gone up. It is higher this year (2006)... that is why our prospective numbers of net additions for 2007 compared to this year will be lower," said Pangilinan. "If the economy will perform better, and if more people can have jobs later, they can have the money to buy phones," he added. Smart reported that its cellular subscribers in Janaury to September 2006 grew by more than 2.5 million to reach 22.9 million. The company's chief rival, Globe Telecom, recorded 14.5 million subscribers. While the increase in mobile phone subscribers is expected to slow down, Cabarios said broadband application and services are seen to rise in coming years. -GMANews.TV