Forecast: 2.7% CAGR for Philippines telco, pay-TV revs
October 26, 2023
The total telecom and pay-TV services revenue in the Philippines is expected to increase at a compound annual growth rate (CAGR) of 2.7 per cent, from $42.3 billion in 2022 to $44.9 billion in 2027, primarily driven by mobile data and fixed broadband segments, forecasts data and analytics company GlobalData.
GlobalData’s Philippines Telecom Operators Country Intelligence Report reveals that the mobile voice services revenue will decline during the forecast period, in line with the steady decline in mobile voice service ARPU, with operators offering unlimited free voice minutes as a part of their bundled plans.
Mobile data services revenue, on the other hand, will continue to increase at a CAGR of 3.8 per cent over the forecast period, driven by the continued rise in smartphone adoption, growing mobile internet subscriptions, and increasing consumption of mobile data services, on the back of increasing adoption of relatively high ARPU-yielding 5G services.
Sarwat Zeeshan, Telecom Analyst at GlobalData, says: “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 across the country.”
In the fixed communication services segment, fixed voice services revenue will increase over the forecast period supported by the subscription gains in the VoIP segment. Fixed broadband services revenue, on the other hand, will grow at a CAGR of 5.1 per cent over 2022-2027 period, in line with the steady rise in FTTH subscriptions, and continued growth in cable internet and fixed wireless subscriptions.
Zeeshan adds, “The growth in the adoption of fibre-optic broadband services in the Philippines can be attributed to the growing availability and demand for high-speed broadband services and the ongoing FTTH coverage expansion efforts by operators. For instance, Converge ICT Solutions extended its fibre footprint to 60,000km until September 2022, covering 53 per cent of households and aims to reach 55 per cent households of the country by the end of 2023.”
Pay-TV services revenue will decline over the forecast period in line with the steady drop in cable TV subscriptions and falling aggregate pay-TV ARPU as a result of growing consumer preference for OTT video service platforms.
Zeeshan concludes: “Globe Telecom and PLDT will remain the market leaders, by subscription share, in the mobile services segment through the forecast period given their strong focus on mobile network upgradation and modernisation. Dito Telecommunity, which commenced its operations in 2021, has been adding new subscribers to its network through a range of promotional mobile service plans. PLDT will top the fixed broadband service market through 2027, thanks to its strong position in FTTH services segment with focus on migrating its copper wire and hybrid-fibre broadband service users to full fibre-optic services.”