National Broadband Plan and 5G Adoption to Drive Philippines Telecom and Pay-TV Market Through 2024, Says GlobalData
National broadband plan with a focus on accelerating investment through flexible regulatory framework, encouraging public and private investments, extending broadband connectivity to public areas and improving digital literacy along with projected growth in 5G adoption will drive the telecom and pay-TV market in the Philippines between 2019 and 2024, according to GlobalData, a leading data and analytics company.
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GlobalData’s ‘Philippines Country Intelligence Report’ reveals that mobile data revenue will remain the largest contributor to telecom revenue during the forecast period.
Revenues from mobile data segment will increase at a compound annual growth rate (CAGR) of 7.1% to reach US$3.5bn by 2024, driven by increasing mobile Internet subscriptions, fast growing machine to machine (M2M) connections and growing adoption of 4G and 5G services.
Deepa Dhingra, Telecom Analyst at GlobalData, says: “The launch of fixed wireless access (FWA) 5G home broadband service in June 2019 by Globe marked the arrival of 5G in the country. The other major operator PLDT is also preparing to launch 5G services in 2020. 5G mobile subscriptions will constitute 12.6% of the total mobile subscriptions by 2024.”
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Fixed broadband revenue will expand at the fastest CAGR of 15.5% during 2019-2024. The government’s effort to extend 10Mbps broadband connection to all households by 2020 and investments from incumbent operators like PLDT will be the key drivers for fixed broadband revenue growth over the forecast period.
In pay-TV market, GlobalData expects steady growth in DTH and IPTV subscriptions to drive revenues at a 3.0% CAGR during the forecast period.
Dhingra concludes: “The landscape in mobile market in the Philippines is expected to change significantly over the coming years with the projected entry of two new mobile operators, Mislatel and Now Telecom, who received their mobile licenses in November 2018 and September 2019, respectively.”
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