Philippines telecom and pay TV revenue to exhibit 1.1% CAGR

Telecom and pay-TV services revenue in Philippines to increase at 1.1% CAGR over 2023-2028, forecasts GlobalData

The total telecom and pay-TV services revenue in the Philippines is expected to increase marginally at a compound annual growth rate (CAGR) of 1.1%, from $8.2 billion in 2023 to $8.7 billion in 2028, supported by the uptick in revenue from fixed broadband services, according to GlobalData, a leading data and analytics company.

GlobalData’s Philippines Telecom Operators Country Intelligence Report reveals that the mobile voice service revenues will decline during the forecast period, in line with the steady drop in mobile voice service ARPU, with growing consumer shift toward mobile/OTT communication platforms and operators offering unlimited free voice minutes as a part of their bundled plans.

Mobile data service revenues, on the other hand, will continue to grow, albeit marginally at a CAGR of 0.6% over the forecast period, supported by the aggregate growth in mobile internet subscriptions, particularly on 4G/5G networks and continued rise in consumption of data services.

Sarwat Zeeshan, Telecom Analyst at GlobalData, says: “4G services accounted for a majority share of the overall mobile subscriptions in 2023 in the Philippines. While 4G will remain the leading mobile technology generation, by subscriber volume through to 2027, its share in total mobile subscriptions will gradually drop, as 5G service adoption increases.

5G subscriptions are set to increase at a rapid pace over the forecast period given the continued increase in 5G service availability due to the network expansion efforts by operators across the country.

In the fixed communication services segment, fixed voice service revenue will decline over the forecast period, due to continued losses in circuit-switched subscriptions and a drop in fixed voice ARPU over the forecast period. Fixed broadband service revenues, on the other hand, will grow at a CAGR of 5% over the 2023-2028 period, in line with the growth in fiber and fixed-wireless subscriptions, on the back of government and telcos efforts to to expand broadband connectivity.

Zeeshan adds: “The growing adoption of fiber-optic broadband services in the Philippines can be attributed to the increasing availability and demand for high-speed broadband services and the ongoing FTTH coverage expansion efforts by operators. For instance, Converge ICT Solutions extended its fiber footprint to 685,000km as of December 2023. PLDT also expanded its total fiber footprint to 1.1 million kilometers as of September-end 2023.

Pay-TV services revenue in the country will also increase over the forecast period, supported by the strong growth in IPTV subscriptions and steady rise in DTH subscriptions.

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 modernization. PLDT will top the fixed broadband service market through 2028, thanks to its growing FTTH subscriber base and extensive fiber network coverage. As of September-end 2023, its fiber network reached over 17.3 million households in 69% of the country’s municipalities and towns.”