02 Nov 2020

The rising need for digital infrastructure development in the Philippines amid the Covid-19 pandemic

MANILA, November 02nd, 2020 – As the lockdowns restrict business operations and limit the movement of people, internet connectivity has never been more urgent to enable digital transformation as the country adopts to new landscapes brought about by the pandemic.

“In times of crisis such as this, the telecom industry plays an important role in ensuring business continuity and household sustainability as dependency for a reliable broadband connectivity becomes more critical”, says Angela Jenny Medez, Client Devices Market Analyst at IDC Philippines. “Internet connectivity will serve as one of the main foundations in supporting the overall digital infrastructure development in the Philippines”, she added.

Telecom providers ensured consumers of sufficient network capacity after a surge in mobile data traffic has been observed as more people work at home and learning moves online. Smart Telecom carried out a national LTE rollout by upgrading its’ 2G based stations to 4G across the country increasing their LTE based stations by 10% for the first half of 2020 whereas Globe Telecom appropriated 1.2 billion US dollars to further improve network services by building additional 900 cell sites through partnership with tower companies as part of their expansion plans for the rest of the year.

IDC’s data has shown that more than 55% of Philippine enterprises have opted to extend Work from Home policies through to June 2021. The mindset behind the extension has helped organizations to plan for the future, and therefore, IDC anticipates a surge in demand in not just telecommunications and cloud based services, but also devices and laptops/PCs that will help facilitate employees to function productively from home.

A surge in demand for devices especially in the education segment has been observed as early as Q22020 due to large procurements from the Department of Education and several other LGUs in preparation for distance learning by providing tablets and laptops that includes a complimentary monthly data allocation to public school students and teachers. “It should be emphasized that along with hardware devices, a well-integrated learning system is crucial in producing a more accelerating rate of learning in the online education space”, says Jessica Joyce Caspillan, PCD Associate Market Analyst at IDC Philippines.

With the rising demand of remote working and online learning brought about by uncertainties and prolonged lockdowns, IDC predicts that the device market in the Philippines will continue to show a strong growth in the succeeding quarters.

For more information about IDC's Mobile Phones and Tablets Tracker, please contact Angela Jenny V. Medez at amedez@idc.com. For more information about IDC’s PCs, PC monitors, and projectors Tackers, please contact Jessica Joyce Caspillan at jcaspillan@idc.com. For media queries, please contact Jane Yap at jqyap@idc.com.

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

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