The Philippines’ telecommunications and pay-TV service sectors are set to experience a surge in revenue, increasing from USD 8 billion in 2024 to an estimated USD 9.7 billion by 2029, representing a compound annual growth rate (CAGR) of 3.8%. The expected growth can be attributed to the expanding mobile data and fixed broadband service sectors.
Despite the overall projected growth in the telecom industry, mobile voice services are anticipated to experience a decline in revenue. This is a result of a consistent drop in the average revenue per user (ARPU) levels of mobile voice services. Consumers are increasingly turning towards internet or application-based communication platforms, and operators are providing complimentary voice minutes in their service plans.
The mobile data service sector, however, is expected to witness substantial growth, with an anticipated CAGR of 7.1% over the forecast period. This growth is driven by an increase in mobile internet subscriptions, especially the upswing in 5G subscriptions, which will significantly enhance mobile data ARPU levels.
The adoption of 5G services is expected to escalate rapidly in the coming years, with 5G projected to become the dominant mobile technology generation by subscriber base in 2029. This growth surge in 5G adoption can be credited to the ongoing 5G network expansion initiatives by operators across the country.
In the fixed communication services sector, revenue from fixed voice services is likely to reduce due to a decrease in circuit-switched subscriptions and a decline in fixed voice ARPU levels. However, the fixed broadband service revenue is projected to grow at a CAGR of 4.7% from 2024 to 2029. This growth can be linked to the rising adoption of higher ARPU fiber-to-the-home (FTTH) broadband services.
The increased adoption of FTTH broadband services in the Philippines is a response to the growing demand for high-speed broadband services and the ongoing expansion of fiber network coverage by operators.
The revenue from pay-TV services in the country is also predicted to increase over the forecast period, backed by robust growth in IPTV subscriptions and a steady rise in DTH subscriptions.
In the mobile services sector, Globe Telecom and PLDT are expected to retain their market leader positions by subscription share throughout the forecast period. This is due to their concentrated efforts on mobile network expansion and modernization. PLDT will continue leading in the fixed broadband sector, largely driven by its extensive fiber network coverage and increasing FTTH subscriber base.
What is contributing to the growth in the Philippine telecommunications industry?
The growth in the industry is primarily due to the expanding mobile data and fixed broadband service sectors.
Why is the mobile voice services revenue expected to decline?
The projected decline is a result of a consistent drop in mobile voice service ARPU levels as consumers increasingly prefer internet or application-based communication platforms.
Which telecom operators are expected to remain market leaders in the Philippines?
In the mobile services sector, Globe Telecom and PLDT are expected to maintain their market leader positions due to their focused efforts on mobile network expansion and modernization.
