The Philippines is gearing up for significant growth in its telecom and pay-TV services industry, with revenue expected to surge from $42.3 billion in 2022 to $44.9 billion in 2027.
GlobalData said driving forces behind this growth in the Philippines telecom market will be mobile data and fixed broadband segments.
While mobile voice services revenue is predicted to decline over the forecast period, mobile data services revenue is set to rise at a Compound Annual Growth Rate (CAGR) of 3.8 percent. The decline in mobile voice service revenue is attributed to the steady decrease in Average Revenue Per User (ARPU) for voice services, as operators increasingly offer unlimited free voice minutes as part of their bundled plans.
4G services accounted for a majority share of the overall mobile subscriptions in 2022 in the Philippines. While 4G will remain the leading mobile technology generation by subscriber volume through to 2026, its share in the total mobile subscriptions will gradually drop, as 5G subscriptions increase at a rapid pace over the forecast period due to the steady increase in 5G service availability and 5G network expansion efforts by operators.
In the fixed communication services segment, the report predicts that fixed voice services revenue will increase, driven by subscription gains in the VoIP segment. Fixed broadband services revenue is expected to grow at a CAGR of 5.1 percent from 2022 to 2027. This growth is attributed to the rise in Fiber-to-the-Home (FTTH) subscriptions and continued expansion in cable internet and fixed wireless subscriptions.
One of the key factors fueling the adoption of fiber-optic broadband services in the Philippines is the growing demand for high-speed broadband and the ongoing FTTH coverage expansion efforts by operators. For example, Converge ICT Solutions extended its fiber footprint to 60,000 kilometers by September 2022, covering 53 percent of households and aiming to reach 55 percent of households by the end of 2023.
However, pay-TV services revenue is expected to decline over the forecast period due to the drop in cable TV subscriptions and falling aggregate pay-TV Average Revenue Per User (ARPU) as consumers increasingly prefer Over-The-Top (OTT) video service platforms.
In terms of market leadership, Globe Telecom and PLDT are expected to remain dominant in the mobile services segment. Their strong focus on mobile network upgrades and modernization ensures they retain a significant share of the market. Additionally, Dito Telecommunity, which began operations in 2021, is gaining subscribers through promotional mobile service plans.
PLDT is set to maintain its leadership in the fixed broadband service market through 2027, thanks to its strong position in the FTTH services segment and its focus on transitioning copper wire and hybrid-fiber broadband service users to full fiber-optic services. With this positive outlook for the Philippines’ telecom and pay-TV services sector, the future appears promising for both businesses and consumers, the report said.