In their efforts to make the country keep pace with countries like the U.S., Japan, and Korea, the majority of Philippine telecommunication companies and service operators in the Philippines have invested in building the backbone infrastructure for the next-generation Internet Protocol (IP) network.

Unfortunately, most of the service providers are not yet fully geared up to roll out new services on top of the new infrastructure, owing to low market demand.

Cisco Philippines? systems engineering head, Oscar Visaya, explains that the IP Next-Generation Network (IP NGN) is a new technology platform that enables the convergence of voice, data, and video services. He went on saying that using the IP-based infrastructure can significantly cut down on operating costs and expand a provider?s ability to deliver new IP-based solutions such as television, video telephony, multi-player gaming, movie-on-demand, and Web integration.

Of the country?s population of 82 million, however, only 4 percent have access to the Internet, and only about 100,000 have broadband subscription, estimated Visaya.

?The demand for converged services technology is growing in the country, although at a slow pace,? he said. ?The insufficient demand is discouraging a lot of telecommunication companies from rolling out IP NGN-based services even if they are already capable of offering the service.?

Meanwhile, investments have already been made in backend systems, such as routers and switches, as well as the full deployment of IP NGN in the country. ?IP NGN is starting to happen, but it will take time,? Visaya said.

Visaya disclosed that two local service providers are eyeing to provide a pay-per-demand service within the year, similar to the offering of U.S.-based broadband firm Vonage America Inc. Through the service, a Filipino with relatives living in the U.S. can acquire a U.S. area code even if he?s in the Philippines, and use it to make calls to relatives and still be charged with ?local? rates.

In a worldwide view, however, IP NGN is gearing for an uptake. According to Cisco Systems? global vice-president for marketing Kelly Ahuja, a report from research firm Gartner shows that yearly global revenues for retail voice calls over the seven-year period from 2001-2007 are projected to be flat at US$350 billion.

On the other hand, global revenues for retail Internet and data services are expected to grow from $150 billion in 2001 to almost $350 million in 2007. The figures represent a compound annual growth rate of 95.6 percent during the given period.

?The capability to churn out more value-added services on top of the standard voice services is the growing standard among telecommunication and service operators worldwide as a means to stay on top of the game,? stressed Ahuja.

He also noted that the increasing competition and need to deliver value-added services is pushing a lot of Asia Pacific companies to invest in core networking infrastructure that will enable them to deliver converged services.

Several companies offering IP NGN services are American?s Sprint and Comcast, Hong Kong Broadband Network Ltd., Japan?s Softbank BB Corporation, Korea?s KT Corporation, and Taiwan?s Chungwa Telecom.