Wireless broadband driving demand for laptops

Telcos capitalize on growth of netbooks

MANILA, Philippines – Demand for laptops is expected to increase as the cost of wireless Internet access likewise continues to go down.

The emergence of netbooks – small, mobile laptops made primarily for Internet surfing – have created a subset in the market for cheap laptops that go for as low as P17,000.

International Data Corporation (IDC) forecast 26 million units of netbooks would be sold worldwide in 2009. Regular laptop models, meanwhile, have gone to as P25,000 for some brands.

But other than price tag, sales of laptop computers are also pegged on the lower cost of getting access to wireless Internet. The lower the price of Internet access, the more it entices people to buy laptops.

Earlier this year, telecom giant PLDT said its wireless broadband service, SmartBro, saw increased sales to over half a million, due in part to the entry of low-cost netbooks.

Rival Globe Telecom, meanwhile, also cites increased notebook sales to drive demand for its Globe Tattoo wireless Internet prepaid kid.

Both companies are marketing their respective prepaid wireless Internet products towards students, a primary target market for low-cost laptops.

Mari Litonjua, Globe’s broadband and landline group marketing manager, said there is still a huge underserved market for both computers and wireless broadband services in the Philippines.

He said the demand is slowly picking up as prices go down and availability of both device and connectivity are being established.

Litonjua also noted that sales of computers and wireless broadband are also on the rise with students depending on the Internet for their studies.

Currently, Globe sells wireless Internet kits at P1,895 for a prepaid plan. However, the company started offering postpaid kits ranging from P499 to P1,499.

The company also started turning their prepaid kits into fashion items, adding stickers apparently to accentuate users’ preferences.

Litonjua explained that having a netbook and a wireless connectivity is slowly going beyond necessity and into lifestyle. As the importance of such devices are established, putting in designs to the device make them more appealing. –Alexander Villafania, INQUIRER.net