Fixed comms service revenue forcast to grow at 5.2% CAGR over 2023-28 in Philippines
Via GlobalData
Aug 7, 2023
The total fixed communication services revenue in the Philippines is expected to increase at a compound annual growth rate (CAGR) of 5.2% from $3.8 billion in 2023 to $4.9 billion in 2028, mainly driven by the strong growth in fixed broadband segment, according to GlobalData, a leading data and analytics company.
GlobalData’s latest Philippines Fixed Communications Forecast (Q2 2023) reveals that the fixed voice revenue growth will remain stagnant and register a mere 0.8% CAGR over the forecast period 2023-2028. This is due to a steady decline in circuit switched subscriptions and drop in fixed voice average revenue per subscriber (ARPS) as a result of growing consumer preference for mobile/internet-based communications and free voice minutes bundled as a part of operators’ fixed bundled plans.
Srikanth Vaidya, Telecom Analyst at GlobalData, comments: “Fixed broadband services revenue, on the other hand, will increase at a healthy CAGR of 6.4% during 2023-2028, driven by the steady growth in broadband subscriptions, especially higher-ARPS yielding fiber broadband subscriptions.”
Fiber lines accounted for a majority of 61% share in the total fixed broadband lines in 2023, which will increase to about 71% by 2028, supported by the government and operator investments on fiber network infrastructure and FTTH service expansions.
Vaidya concludes: “PLDT will lead the fixed voice services segment in terms of subscriptions through 2028. The operator will also top the fixed broadband services market, by subscriptions, supported by its strong position in DSL and FTTH service lines.