The fixed communication services market in the Philippines is projected to grow at a compound annual growth rate (CAGR) of 2.5 percent, rising from $3.6 billion in 2024 to $4.1 billion by 2029, according to GlobalData. This growth will be largely fueled by the expanding fixed broadband segment, particularly fiber-to-the-home (FTTH) services, amid a steady decline in fixed voice revenues.
Credit Freepik
Fixed broadband revenues are forecast to grow at a healthy CAGR of 4.4 percent over the forecast period, supported by a consistent rise in broadband subscriptions and increased uptake of higher-ARPS fiber services.
In 2024, fiber lines accounted for 76 percent of total fixed broadband connections — a figure expected to climb to 88 percent by 2029. This growth is underpinned by both government-led digital initiatives and operator investments in fiber infrastructure across the country.
Leading operator PLDT continues to drive fiber broadband expansion, having rolled out FTTH services in key regions such as Negros Island, Bantayan Island in Cebu, and Camiguin Island during 2024.
By the end of that year, PLDT’s fiber network covered over 18.5 million households across 73 percent of the country’s municipalities. To extend fiber services to underserved areas, PLDT also secured a PHP2 billion ($34.4 million) social loan focused on improving connectivity in lower-income and remote communities.
PLDT has earmarked PHP70 to 73 billion ($1.22 to $1.27 billion) in capital expenditure for 2025, with a significant share directed toward enhancing and expanding its fiber broadband infrastructure. The company is set to maintain its leadership in both fixed voice and fixed broadband markets through its broad DSL and fiber service portfolios.
In contrast, fixed voice service revenues are expected to continue their downward trend, as circuit-switched technologies become obsolete and voice ARPS declines. This erosion highlights the shift in consumer behavior towards data-centric services and more advanced communication platforms.
Main operators
In the Philippines, the major fixed broadband operators — PLDT, Globe Telecom, and Converge ICT Solutions — are pursuing distinct investment strategies to expand and strengthen their fiber networks amid rising data demand.
PLDT, through PLDT Home, continues to lead the market and is investing in fiber network modernization and expansion. In early 2024, it secured a ₱1 billion green loan specifically to support its broadband infrastructure, including fixed fiber, mobile data, and carrier-grade Wi-Fi networks. This move highlights its focus on sustainability and long-term service quality improvements.
Globe Telecom is streamlining its capital spending while maintaining a strong emphasis on fiber broadband. In 2024, Globe reduced its capital expenditure to ₱56.2 billion, down from ₱70.6 billion in 2023. Despite the reduction, around 90 percent of the investment remains focused on data services, including broadband. The company aims to keep capex below US $1 billion in 2025 to achieve positive free cash flow, while continuing to transition customers from legacy DSL and wireless services to full fiber connectivity.
Converge ICT Solutions is taking a more aggressive expansion route. The company increased its investment in 2024 to between ₱17 billion and ₱19 billion, nearly double the previous year, targeting nationwide fiber expansion, subsea cable development, and new data centers.
For 2025, Converge plans to raise its capex further to between ₱20 billion and ₱25 billion. Of this, ₱12 billion will go toward fiber rollout, ₱7 billion to complete two subsea cable projects, and ₱5 billion for building two data centers. The company aims to expand its fiber port capacity from the current 8.96 million to 11 million by 2027, with a target of reaching 4 million subscribers.
The Philippine fixed communications market is on a path of transformation, with fiber broadband adoption driving revenue growth and reshaping the competitive landscape. As demand for high-speed, reliable internet access continues to accelerate, operators that invest in next-gen infrastructure and localized service delivery will be best positioned to meet evolving consumer expectations and tap into long-term market opportunities.
Baburajan Kizhakedath