PLDT will top the fixed broadband services market, by subscriptions, supported by its strong position in DSL and FTTH service lines in the Philippines.
PLDT has 3.711 million broadband subscribers at end of March 2024. This includes 3.255 million fixed line broadband and 4.560 million fixed wireless broadband customers.
PLDT will lead the fixed voice services segment in the Philippines in terms of subscriptions through 2028, according to GlobalData. PLDT has 3.740 million fixed line voice subscribers.
Revenues generated from fixed line business amounted to Php31.845 billion for the three months ended March 31, 2024, an increase of Php1.798 billion, or 6 percent, from Php30.047 billion in the same period in 2023.
PLDT’s revenue from fixed wireless broadband business was PHP 379 million (down 7 percent) in January-March 2024. PLDT’s revenue from home broadband was PHP 12.695 billion.
PLDT says home broadband data revenues amounted to Php12.695 billion for Jan-March, 2024, an increase of Php121 million, or 1 percent, from Php12.574 billion in Jan-March 2023, mainly driven by the demand for broadband services.
Home broadband revenues of PLDT accounted for 52 percent and 55 percent of fixed line data service revenues for January-March, 2024 and 2023, respectively.
Capex
The operator has earmarked a Capex (capital expenditure) of around PHP75 to 78 billion ($1.28 to 1.33 billion) in 2024, a significant portion of which it will be used to upgrade and expand its fiber broadband network and gain from wider coverage of its FTTH services.
PLDT says investment in property and equipment increased by Php9.588 billion, or 3 percent, mainly due to capital expenditures, for January-March 2024. PLDT has more than 66.4 million customers on its mobile, fixed line and data platforms.
PLDT has conducted discussions with major network vendors to review PLDT’s capital expenditure commitments and outstanding balances. The commitment in respect of major network vendors amounted to about Php33 billion as per Settlement and Mutual Release Agreements (SMRAs) signed in March 2023. Such commitment was reduced to Php10.300 billion as at March 31, 2024. New purchase orders relating to major network vendors issued in 2023 and 2024 amounted to Php20.400 billion.
PLDT says commitments related to non-major capital expenditure vendors amounted to Php21,100 million, of which Php7,900 million represent the commitments for 2022 and prior years as of March 31, 2024.
Broadband market in Philippines
GlobalData said the total fixed communication services revenue in the Philippines is expected to increase at a CAGR of 5.3 percent from $3.7 billion in 2023 to $4.7 billion in 2028, mainly driven by the fixed broadband service segment.
Growth in fixed voice revenue in the Philippines will remain steady over the forecast period. Fixed broadband services revenue in the Philippines will increase at a CAGR of 5.7 percent during 2023-2028.
Srikanth Vaidya, Telecom Analyst at GlobalData, comments: “Growth in fixed broadband service revenue will be driven by the steady increase in broadband subscriptions, especially higher-ARPS yielding fiber broadband subscriptions.”
Fiber lines in the Philippines accounted for a majority 70 percent share of the total fixed broadband lines in 2023, which will increase to about 85 percent by 2028, supported by the government and operator investments on fiber network infrastructure and FTTH service expansions.
Baburajan Kizhakedath
