Philippines Telecom - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Philippines Telecom Market size is estimated at USD 5.58 billion in 2024, and is expected to reach USD 6.55 billion by 2029, growing at a CAGR of 3.28% during the forecast period (2024-2029).

Most major telecom companies, such as PLDT, Smart Communications, Globe Telecom, DITO Telecommunity, and NOW Telecom, are based in the Philippines and promote innovation by making significant R&D investments consistently.

Key Highlights

• To overcome the growing demand, the Philippine telecom industry made further strides in expanding its network capacity with fiber and wireless deployments. For instance, in April 2022, the Anti-Red Tape Authority affirmed its decision ordering the National Telecommunications Commission to extend the permit of Now Telecom Company to operate mobile telephone services and mobile and fixed wireless frequencies. Such initiatives will increase the demand for reliable and high-speed internet connectivity services.
• DITO Telecommunity deployed more than 30,000 km of fiber-optic cabling in June 2022 to link the country's three major islands and built over 5,500 mobile towers, connecting more than 600 cities and municipalities.
• In 2020, DICT(Department of Information and Communications Technology) introduced a five-year road map to improve connectivity in urban areas across the Philippines. This five-year road map aims to build cell towers and deploy high-throughout satellites for provinces such as Mindoro, Marinduque, Batanes, Romblon, Siargao, and Camiguin. Such initiatives are rising mobile internet subscriptions and growth in smartphone subscriptions that will bring new customers into the telecom market.
• For instance, Globe Telecom company extended the reach of its free GoWiFi service across 3,700 locations nationwide to meet the demand for reliable internet access in public areas. This project covers government sites, supermarkets, hospitals, airports, and schools across the city halls of Quezon, Mandaluyong, Bacoor, Puerto Galera, Davao, and Antipolo. Such initiatives across Wi-Fi solutions will bring growth opportunities for the telecom market.
• The outbreak of COVID-19 has significantly impacted production and supply chains globally. The telecom sector will likely experience an increase in mobile device production in the coming years. It may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Progress toward the 5G network is expected to impact the market's growth positively.

Philippines Telecom Market Trends

Growing Demand for Fixed Broadband Services

• Fixed broadband penetration will grow over the next five years, driven by the efforts from the operators and the government to expand broadband coverage across the country.
• In the coming years, most investment in the telecom sector will be focused on deploying fiber infrastructure in urban areas. For instance, PDLT is accelerating a network modernization program that migrates from copper to fiber. At the same time, there has been considerable progress in 5G developments.
• During and after COVID-19, most people preferred work-from-home mode, creating more demand for fixed broadband services. These fixed broadband services can provide high-speed internet services. Key players in the market are now focused on expanding their broadband services that support 5G networks. For instance, Sky Cable, a fixed broadband service provider, is planning to expand its fiber internet services across new areas.
• InfiniVAN, a fixed broadband service provider, partnered with SKY Perfect JSAT Corp. to deliver satellite broadband services across rural areas. The first site has been deployed on Batan Island in Batanes province in North Philippines and is currently being used for remote monitoring of wind-power generation facilities and to help resolve the digital divide in the surrounding rural areas.
• Globe Telecom reached 1.4 million fiber-to-the-home (FTTH) connections across the Philippines in 2022. The company's fiber capacity improved by 38.6%. Globe Telecom has partnered with InfiniVAN to construct a USD 150 million fiber cable network to boost mobile and broadband services. The construction of the fiber cable project covers a 2,500 km of Philippine Domestic Submarine Cable Network across remote locations such as Sorsogon, Masbate, Marinduque, Camiguin, Siargao, Boracay, and Zamboanga. Such initiatives are expected to increase the demand for fixed broadband services.

Growing Demad for OTT Services

• Pay-TV penetration in the Philippines is projected to decrease over the next five years due to subscription loss across cable and DTH segments with the growing popularity of OTT (over-the-top) video services in the country.
• DITO Telecommunity Corp. plans to spend around USD 1 billion per annum to build thousands of cell sites across urban and rural areas. Such investments are expected to increase the demand for OTT services.
• Earlier this year, DITO Telecommunity reached the milestone of seven million active mobile subscriptions on its network. The increase in mobile subscriptions will significantly increase the demand for OTT services.
• The Phillippine telecom market is expected to grow significantly over the next five years with the rising adoption of OTT services. Smart Communication recorded 42.6 million active data users last year. For instance, Smart Communications partnered with Firstlight Media to provide its customers with improved OTT video services.
• OTT service providers such as Netflix, iflix, Viu, and Prime Video will further create new growth opportunities for the telecom market. The adoption of video streaming platforms is boosted by increasing demand for both local and international shows and video content.

Philippines Telecom Industry Overview

The Philippines telecom market is highly fragmented in nature owing to the ongoing partnerships and recent advancements in the market. Some major players in the market studied include Smart Communications, Globe Telecom, DITO Telecommunity, and NOW Telecom.

• March 2022: PLDT Inc. teamed up with global satellite operator Telesat to complete the first successful trials of high-speed broadband connectivity using the Canadian-based firm's Phase 1 Low Earth Orbit (LEO) satellite. Such initiatives are expected to help in offering high-speed mobile and internet services across urban and rural areas.
• April 2022: Globe Telecom signed an MoU (memorandum of understanding) with AST SpaceMobile. This partnership aims to provide satellite broadband to standard mobile handsets in the Philippines.

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