Research group International Data Corporation (IDC) Philippines, in its ICT market forecast released in January, placed total IT spending of companies this year at $1.56 billion, the bulk of which or 66.5 percent will go to hardware, while services and software will account for 23.2 percent and 10.3 percent, respectively.

'The improving economic outlook of the country is also a key factor. The inflow of remittances from overseas Filipino workers, which is expected to reach around $12 billion this year, will continue to drive consumer IT spending, particularly computers and digital gadgets,' said Chua.

The head of the 44-member COMDDAP also cited recent technological advances such as third-generation (3G) cellular phones, Microsoft's new operating system called Windows Vista, growing Wi-Fi (wireless fidelity) zones and WiMAX (wireless interoperability for microwave access) areas, and increased Internet usage, especially VOIP (voice over the Internet protocol).

'All these will drive improvement in IT sales,' said Chua.

There are about 1 million dial-up Internet subscribers in the country last year, while latest combined figures of DSL (digital subscriber line) users, both fixed line and wireless, of major telecommunications firms has reached 240,000.