Market Trends of Philippines Telecom Industry
This section covers the major market trends shaping the Philippines Telecom Market according to our research experts:
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.
Understand The Key Trends Shaping This Market
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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.
