This report provides a comprehensive overview of trends and developments in the Philippines telecommunications market. The report analyses the Telecoms Infrastructure, mobile, fixed broadband, and Digital Economy sectors. Subjects include:
Market and industry analyses, trends and developments;
- Regional market comparisons
- Telecoms Maturity Index
- Industry and regulatory issues;
- Major players, revenues, subscribers, ARPU;
- Mobile voice and data markets;
- Broadband (FTTH, DSL);Mobile, broadband and mobile broadband forecasts to 2023
Telecommunications investment in the Philippines will continue to see increasing emphasis on supporting high speed broadband access. The bulk of the fixed services are in urban areas. In contrast, the fixed line market in the Philippines remains underdeveloped and fixed line penetration continues to show stagnant growth. A major reason for this is due to the dominance of the mobile segment and the rapid expansion of the mobile broadband segment.
Despite competition from new carriers and mobile operators, PLDT has continued to be the Philippines’ dominant fixed-line provider. However, in recent years, Globe Telecom in particular has been pushing hard to overhaul the incumbent and now is the leading mobile provider in term of overall subscribers.
In 2018 the Department of Information and Communications Technology (DICT) published its guidelines to accommodate the entry of a third major telecoms operator in the local market.
In recent few years, the major operators have also been forced to cope with the pressures of slowing growth in traditional areas. In particular, there has been good progress in the rollout of optical fibre infrastructure. PDLT announced plans to accelerate a network modernisation plan that will see it switching to fibre over the following two years.
Fixed broadband penetration in the Philippines remains relatively low mainly due to a limited number of fixed lines and the dominance of the mobile platform, which has in turn driven the mobile broadband market.
Despite declining prices in both fixed and mobile broadband, this type of service is still not affordable for the majority of the population. Operators have been pushing hard with competitive low entry-level packages, but the market continues to struggle.
However, the market has grown very strongly over the past five years from a small base. Over the next five years to 2023 strong growth is expected to continue from this very small base as both major fixed broadband operators, PLDT and Globe Telecom continue with their rollouts.
There has been a major push by market leader PLDT to offer fibre-based services; Globe has been trying to match the PLDT push where it can. PDLT is also deploying hybrid technology, such as G.fast, under a wider three-year program.
PDLT’s ongoing nationwide fibre-optic rollout program, has already set up a number of so-called ‘PLDT Smart City’ areas. In 2018 a consortium of Filipino-Chinese developers were scheduled to begin work on an extensive smart city project that will give rise to a mixed-use development off the coast of Manila.
A feature of the Philippines mobile market has been the near duopoly with Smart together with Globe Telecom maintaining a tight hold on the industry. The two leading providers continue to battle to win subscribers and introduce new services, and both lost subscribers during 2017 as the market went through consolidation.
Mobile ARPU levels have been on a downward trend for a long time in the Philippines as competition in the mobile industry has intensified. The operators continue to engage in aggressive price competition in an effort to grab market share.
The Philippines has seen a very rapid increase in mobile broadband penetration over the past five years driven by a rising level of wireless broadband users. Strong growth is predicted over the next five years to 2023, however at a slower and declining rate as the market further matures.
The Philippines is already preparing for the move from 4G to 5G. PLDT Inc. has set up what it is calling a ‘5G technolab’ into the research and development of the next generation platform and Globe Telecom announced its intention to launch 5G services in the Philippines by the middle of 2019.
- Telecommunications investment will continue to support high speed broadband access.
- The fixed line market in the Philippines remains underdeveloped.
- Globe Telecom is now challenging PLDT in both the fixed and wireless markets.
- Fixed broadband penetration remains relatively low but is growing strongly from a small base.
- DICT has published its draft terms of reference for the selection of a New Major Player (NMP).
- An extensive smart city project off the coast of Manila is scheduled to begin.
- The Philippines has seen a rapid recent increase in mobile broadband penetration.
- Mobile subscriber growth is expected to be relatively low over the next five years to 2023.
- The Philippines is already preparing for the move from 4G to 5GKey companies mentioned in this report:
- PLDT, Smart Communications, Globe Telecom, Liberty Telecom, Bayantel, Bell Telecom (BellTel), Digitel, Eastern Telecom (ETPI), Innove (Globe), PT&T, ABS-CBN Corp, Broadband Philippines, Vega Telecom, Extelcom.
1. Key statistics
1.1 Country overview
2. Telecommunications market
2.1 Market Overview and Analysis
2.2 Regional Asian Market Comparison
3. Regulatory environment
3.1 Regulatory authority
3.1.1 National Telecommunications Commission (NTC)
3.1.2 Commission on Information and Communications Technology (CICT)
3.1.3 Department of Information and Communications Technology (DICT)
3.2 Telecom sector liberalisation
3.3 Regulatory Reform
3.6 Anti-cable tapping law
3.7 Foreign ownership rules
3.8 Misleading and Deceptive Conduct
3.10 Cybercrime legislation
4. Fixed network operators
4.1 Philippine Long Distance Telephone Company (PLDT)
4.2 Globe Telecom
4.3 Bell Telecom
4.4 Eastern Telecommunications Philippines Inc (ETPI)
4.8 ABS-CBN aiming to be ‘third telecom player’
5. Telecommunications infrastructure
5.1 Overview of the national telecom network
5.1.1 Internet exchanges
5.2 Fixed-line statistics
5.3 National Broadband Network (NBN)
5.4 National Broadband Plan
5.5 Next Generation Networks (NGNs)
5.6 International infrastructure
5.6.3 International gateways
5.6.4 Satellite systems
5.6.5 Very Small Aperture Terminal (VSAT) services
5.7 Data Centres
5.8 Smart Cities
6. Broadband market
6.1 Introduction and statistical overview
6.1.1 Market Overview and analysis
6.1.2 Broadband Statistics and Forecasts
6.2 Fixed Broadband Service Providers
6.2.1 Philippine Long Distance Telephone Company (PLDT)
6.2.2 Globe Telecom
6.2.3 Entry of Third Telco Operator
6.2.4 Liberty Telecom / Wi-tribe
6.3 Fixed Broadband Technologies
6.3.1 Digital Subscriber Line (DSL) networks and Cable Modem
6.3.2 Fibre to the Home (FttH)
6.3.3 National Broadband Network
6.3.4 Other fixed broadband services
7. Digital media
8. Mobile communications
8.1 Market Overview and Analysis
8.2 Mobile statistics
8.2.1 Mobile Statistics and Forecasts
8.2.2 Mobile voice
8.2.3 Mobile ARPU
8.2.4 Mobile broadband statistics and Forecasts
8.3 Regulatory Issues
8.3.1 SIM registration
8.3.2 SMS-related issues
8.3.3 Mobile Spectrum
8.4 Mobile infrastructure
8.4.1 3G and 4G
8.5 Major mobile operators
8.5.1 Mobile Operator statistics
8.5.2 Smart Communications
8.5.3 Globe Telecom
8.5.4 NOW Telecom (Next Mobile)
8.6 Mobile content and applications
List of Tables
Table 1 - Top Level Country Statistics and Telco Authorities - 2018 (e)
Table 2- Percentage of Population Covered by Type of Mobile Network
Table 3 - Philippines’ GDP real growth rate - 2006 - 2018
Table 4 - Key Metrics - Compound Annual Growth Rate (CAGR) - 2018 - 2023
Table 5 - PLDT’s capital expenditure - 2008 - 2018
Table 6 - PLDT fixed-line subscribers - 2001; 2005 - 2018
Table 7 - Historic - Globe Telecom fixed-line subscribers - 2002 - 2007
Table 8 - Globe Telecom fixed-line voice revenues (millions peso) - 2008 - 2017
Table 9- Fixed Line Subscriptions and Penetration - 2007 - 2018
Table 10 - Historic - Fixed lines in service and penetration - 1994 - 2006
Table 11 - Historic - Fixed lines - proportion of urban and residential subscribers - 2007 - 2014
Table 12 - Historic - Total international internet bandwidth - 2003 - 2016
Table 13 - Fixed Broadband Subscribers and Penetration (with Forecast) - 2007 - 2023
Table 14 - Internet Users and Penetration - 2007 - 2018
Table 15 - PLDT’s total broadband subscribers - 2005 - 2018
Table 16 - PLDT’s fixed line broadband subscribers - 2008 - 2018
Table 17 - Historic - PLDT’s DSL subscribers - 2005 - 2013
Table 18 - Historic - PLDT - broadband ARPU (PHP/month) by unit/contract type - 2013 - 2015
Table 19 - PLDT - broadband ARPU (PHP/month) by category- 2016 - 2018
Table 20 - Globe Telecom home broadband subscribers - 2007 - 2018
Table 21 - Historic - DSL subscribers - 2001 - 2016
Table 22 - Historic - Cable modem subscribers - 2005 - 2015
Table 23 - Historic - FttH subscribers - 2005 - 2016
Table 24 - Mobile Subscribers and Penetration (with Forecast) - 2007 - 2023
Table 25 - Historic - Total mobile subscribers and penetration rate - 1994 - 2004
Table 26 - Historic - Mobile services revenue - 1993 - 2016
Table 27- Mobile Broadband Subscribers and Penetration (with Forecast) - 2013 - 2023
Table 28 - Historic - Mobile operators and systems
Table 29 - Mobile subscribers (millions) by major operator - 2013 - 2018
Table 30 - Mobile subscriber market share by major operators - 2013 - 2018
Table 31 - Historic - Mobile subscribers by operator - 2009 - 2012
Table 32 - Smart (PLDT) - total mobile subscribers - 2006 - 2018
Table 33 - PLDT - mobile subscribers (millions) by category - 2017 - 2018
Table 34 - PLDT - mobile ARPU by operator/contract type - 2017 - 2018
Table 35 - Globe Telecom mobile subscribers by prepaid, postpaid- 2010 - 2018
Table 36 - Historic - Globe Telecom mobile subscribers - 2001 - 2009
Table 37 - Globe Telecom - mobile ARPU (PHP/month) by contract type - 2015 - 2018
List of Charts
Chart 1 - Mobile, Mobile Broadband & Fixed Broadband Penetration - 2018; 2023
Chart 2 - Asian Telecoms Maturity Index by Market Category
Chart 3 - Asian Telecoms Maturity Index vs GDP per Capita
Chart 4 - Telecoms Maturity Index - South East Asia
Chart 5 - Fixed Line Subscriptions and Penetration - 2007 - 2018
Chart 6 - Fixed Broadband Subscribers and Penetration (with Forecast) - 2008 - 2023
Chart 7 - Mobile Subscribers and Penetration (with Forecast) - 2008 - 2023
Chart 8 - Mobile Broadband Subscribers and Penetration (with Forecast) - 2013 - 2023
List of Exhibits
Exhibit 1 - Key Market Characteristics by Market Segment
Exhibit 2 - South East Asia - Key Characteristics of Telecoms Markets by Country
Exhibit 3 - Major submarine cables with landing points in the Philippines