Philippines Telecoms Industry Report 2024-2031, Featuring ABS-CBN, ALT Global Solutions, Bayantel, Converge ICT, Edgepoint, edotco, Globe Telecom, Lopez, Miescor, Mislatel, Radius Telecom and More - ResearchAndMarkets.com
The "Philippines Telecoms Industry Report - 2024-2031" report has been added to ResearchAndMarkets.com's offering.
The Philippines Telecommunications Industry Report, 2024-2031 includes an overview of the Philippines market dynamics, market sizing, market forecasts, analysis, insights and key trends.
Key Market Insights
- The Philippines's telecommunications industry has been dominated by the PLDT-Globe duopoly over the last two decades. Recent reforms and the launch of a third mobile operator will bring competition and innovation in the sector.
- Telecommunications infrastructure investments have more than tripled with the arrival of DITO Telecommunity and Converge ICT to the scene.
- Mobile subscriptions are forecast to continue to grow in the 2023-30 period and fixed broadband subscribers will also continue to grow strongly and increase its household penetration over the same period.
- Expanded coverage, greater affordability, service improvements, increased data usage and smartphone penetration are the main drivers of growth in the telecoms sector. The country continues to expand its fibre-optic network and 4G coverage, backed by strong investment in capital expenditure. Investment in the telecoms sector grew to its highest in 2021 with new mobile market entrant DITO Telecommunity launching that year.
- The overall telecoms market is forecast to grow strongly through to 2030 despite the SIM registration process in 2023 which led to a loss of mobile subscribers in 2023.
Capex Investments
The Capex to GDP ratio remained relatively stable between 2014 and 2018 but soared in 2019. The ratio is forecast to settle back by 2024 peaking in 2021. Both PLDT and Globe are investing heavily in 4G and 5G with PLDT playing catch-up by investing in its network expansion while Globe refocuses on its fixed broadband business after stagnating in 2021.
Mobile Subscribers and Revenue
- A decline of mobile subscribers was forecast in 2023. It is expected that the number of mobile and broadband subscribers will continue to rise steadily to 2030 from 2024 onwards.
- Mobile network operators are facing competitive pressure with the market shifting to unlimited voice and text and data allowance becoming now the sole offering differentiator.
- The publisher benchmarked mobile data pricing across 8 countries in the Asia Pacific region and found that the Philippines is lagging behind in terms of data download but we expect the country to catch up as 4G coverage is accelerating and smartphone penetration is increasing especially in regional areas.
- According to the benchmark study of mobile data pricing, India has the lowest rate per GB at just a few cents per GB, while Australia and China had the biggest cost reduction per GB mostly due to increased data allowance in plans while Singapore remains expensive. The Philippines' pricing is on par with Thailand's when benchmarked against neighbouring countries.
Broadband Subscribers - FTTH Push and Fixed Wireless
The Philippines fixed broadband was very much a laggard compared to other ASEAN countries which have invested more heavily in Fibre-to-home infrastructure. PLDT's FTTH penetration is much lower than in other countries such as Indonesia, Malaysia or Thailand. After initially focusing on fixed wireless access, Globe shifted its strategy back to FTTH, but remains behind PLDT and Converge ICT. Other efforts from Radius Telecom (part of Meralco) remain small in scope and are so far targeting only wealthy gated community areas of Metro Manila, other large cities or new developments. The biggest growth after PLDT was Converge ICT which is performing very well.
Telecoms Infrastructure/5G/M&A/e-Commerce
The Philippines is a sleeper market for mobile infrastructure, this is largely due to the cosy monopoly enjoyed between Globe Telecom and Smart (PLDT) over the last two decades and also due to the massive red tape required for building a mobile tower. The announcement of the third telco player ignited the market for tower sharing together with the DICT pushing a policy to build over 50,000 new towers shared across the industry, attracting a new category of infrastructure investors that were not participating in the market until now. New tower-build accompanied by fiberisation of the latter will boost the country's telecoms infrastructure and will be most welcome in the market after two decades of under-investments in the Philippines market.
Mobile operators and specialised towercos are rushing to sign deals but we doubt Globe and Smart will share any existing assets in a hurry unless they are forced to by the regulator.
Most towercos are greenfield operations and are each planning to build about 1,000 to 5,000 towers over the next three years. A large number of new entrants with over 20 towercos signed an MoU with DICT to participate in the build of 50,00 new towers.
The Philippines has one of the lowest ratios of mobile towers per capita and the highest number of subscribers per base transceiver stations (BTS) in the Association of South-East Asian Nations (ASEAN) region.
Investment funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure. This report outlines some real market examples of how investors view and value these investments with industry examples and EV/EBITDA comparatives and benchmarks.
Most telecommunications operators are in heavy investments phase both in fixed and mobile segments, spending heavily upgrading their 4G network infrastructure. A wave of towercos consolidation is expected in the Philippines but not before 2024-2025, as margins get squeezed further before a new Capex cycle kicking off with 6G by 2030.
The arrival of 4G moved the Internet off our desktops into our palms and pockets, 5G could transform the network from something we carry around to something taking us around either virtually (augmented reality or virtual reality) or in reality (autonomous vehicles), the 5G outcome and benefits beyond fast connectivity remain largely unknown in terms of business models, investments required and timeline.
The increase in smartphone penetration made possible by the availability of low-cost devices has triggered growth in e-commerce, tapping into the potential of the Philippines's emerging middle class with relatively high disposable income.
Key Topics Covered:
1 Key Statistics
1.1 Philippines Population
1.2 Philippines' Economy
1.3 Philippines' GDP
2 Overall Telecommunications Market, 2017-2031
2.1 Market Overview
2.2 Historical Telecommunications Market Revenue, 2017-2023
2.3 Overall Telecommunications Market Forecast, 2023-2031
2.4 Telecommunications Market Capital Expenditure, 2017-2031
3 Telecommunications Operators Profile
3.1 PLDT Profile
3.2 Globe Telecom Profile
3.3 Dito Telecommunity
3.4 Converge ICT
3.5 Other Players Profile
3.5.1 ABS-CBN
3.5.2 Other Cable Operators
4 Mobile market
4.1 Mobile Subscribers Historical and Forecast, 2017-2031
4.2 Mobile Revenue Historical and Forecast, 2017-2031
4.3 Mobile Number Portability on its Way
4.4 Spectrum Holdings
4.5 Mobile Download Data and Pricing Trends
4.6 Mobile Speed Tests
4.7 Internet of Things (IoT)
5 Broadband Market
5.1 Fixed Broadband Subscribers Historical, 2017-2023
5.2 Fixed Broadband Subscribers Forecast, 2023-2031
6 Satellite Internet Connectivity
6.1 Comparing LEO, MEO, and GEO Satellite Orbits
6.2 Satellite Broadband Providers Operators, 2023
6.3 5G NTN: The Next Generation of Satellite Connectivity
6.4 Satellite Internet Market Analysis, 2023-2031
6.4.1 Market Landscape of Satellite Broadband Subscribers, 2023
6.5 Philippines Satellite Broadband Subscribers Forecast, 2023-2031
7 Fixed Telecommunications Infrastructure Investments
7.1 Fixed Digital Infrastructure
7.1.1 National Broadband Network Plans
7.1.2 Submarine Cables
7.1.3 FTTH - a long way to go
8 Philippines Telecom Towers Infrastructure Landscape
8.1 Philippines Telecom Towers Market Analysis, 2023
8.2 Philippines Telecom Towers Market Forecast
9 Thematics/Opportunities
9.1 Consolidation Opportunities
9.2 Diversification Opportunities
9.3 New Telecoms Operating Model
9.4 6G Developments
10 Telco Transaction Database
Companies Featured
- ABS-CBN
- ALT Global Solutions Inc.
- American Tower
- Bayantel
- Chelsea Logistics and Infrastructure Holdings
- Converge ICT
- DITO Telecommunity
- Edgepoint
- edotco
- Frontier Tower Associates
- Globe Telecom
- Infinivan LCS Holdings
- Lopez Group
- Miescor
- Mislatel
- Now Corp
- Phil Tower
- PLDT
- Radius Telecom
- Royal Cable
- Sky Broadband
- Sky Cable
- Udenna
- Unity Digital Infrastructure
For more information about this report visit https://www.researchandmarkets.com/r/f9i120
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