According to intelligence and productivity platform GlobalData, revenues from Philippine telecommunications and pay-television services are projected to grow at a compound annual growth rate (CAGR) of 3.8% over the next four years, driven by continued network expansion and growing Internet Protocol Television (IPTV) subscriptions.
In a media release, GlobalData said the country's telecommunications and pay-TV services revenues are expected to grow from $8 billion in 2024 to $9.7 billion in 2029, mainly supported by the mobile data and fixed broadband segments.
“4G service accounted for the majority of total mobile subscriptions in 2024, but 5G service adoption will see huge growth in the coming years and will become the leading mobile technology generation by subscriber base in 2029,” GlobalData telecom analyst Kantipudi Pradipathi said in a report.
Rizal Commercial Banking Corporation Chief Economist Michael L. For Ricafort, competition within the industry will be a key theme of development, in line with expected investments by technology companies in data centers and artificial intelligence (AI).
“New technologies and innovations can be potential game-changers and market disruptors in their respective industries,” he said in a Viber message.
Mobile service revenues are expected to decline during the forecast period due to a decline in mobile voice service average revenue per user (ARPU), according to GlobalData's Philippine Telecom Operators Country Intelligence Report.
The report attributed the decline to the shift toward Internet or application-based communications platforms, as well as operators offering free voice bundles as part of their service packages.
“This growth in 5G adoption will be driven by the ongoing 5G network expansion efforts by operators across the country,” Ms Pradipthi said.
However, mobile data revenues are expected to continue to grow at a CAGR of 7.1% during the forecast period, GlobalData said, due to rising internet subscriptions including 5G services.
For fixed communications services, fixed voice revenues are expected to decline amid a decline in circuit-switched subscriptions, the report said.
In contrast, fixed broadband service revenues are projected to expand due to rising ARPU for fiber-to-the-home (FTTH) services.
To support development, Converge ICT Solutions, Inc. “The growing acceptance of FTTH broadband services in the Philippines can be attributed to the growing demand for high-speed broadband services and the ongoing fiber network coverage expansion efforts by operators,” Ms Pradipathi said, citing the planned expansion of FTTH ports in the Philippines.
Converge ICT's net income rose 8.4% to P8.90 billion in the January to September period from P8.21 billion a year earlier, while revenue for the nine months rose 10.12% to P32.97 billion from P29.94 billion.
Pay-TV services revenues are also projected to grow steadily during the forecast period, supported by strong IPTV adoption and continued expansion of direct-to-home subscriptions.
GlobalData said that Globe Telecom, Inc. and PLDT Inc. is expected to remain the market leader in terms of subscription share during the forecast period supported by their focus on mobile network expansion and modernization initiatives.
“PLDT’s leadership in the fixed broadband segment will be driven by its extensive fiber network coverage and growing FTTH customer base,” Ms Pradipthi said.
For the nine months ending in September, both Globe and PLDT reported declines in attributable net income. Globe's attributable net income fell 14.04% to P17.69 billion from P20.58 billion, while revenue fell to P131.59 billion from P134.74 billion.
PLDT's attributable net income declined 10.69% to P25.07 billion, while revenue increased 1.45% to P163.28 billion from P160.94 billion.
GlobalLynx Securities & Stocks, Inc. The Philippine telecommunications industry is likely to record modest growth by the end of the year, said Toby Alan C. Arce, head of sales trading at Inc., citing data demand and competitive dynamics as key growth drivers. -Ashley Erica O. jose