TELECOMMUNICATION and pay-TV services revenue in the Philippines is expected to increase at 4 percent compound annual growth rate (CAGR) during 2021-2026, according to the forecast of GlobalData, a data and analytics company.
GlobalData said this growth may be attributed to mobile data and fixed broadband segments.
“Pay-TV services revenue in the country is set to grow over the forecast period in line with the steady increase in [direct to home] DTH subscriptions and robust growth in [internet protocol television] IPTV subscriptions,” GlobalData said in a statement on Thursday.
Meanwhile, according to GlobalData, mobile data service revenue is also poised to increase at a “healthy” CAGR of 7.8 percent over the provided forecast period.
This, the data and analytics firm noted, will be driven by the projected rise in mobile internet subscriptions, growth in higher [average revenue per user] ARPU-yielding 5G subscriptions and a steady rise in the consumption of mobile data services.
Based on the data presented by GlobalData, mobile data and messaging will grow by 7.2 percent annually within the 2021-2026 period.
This was followed by fixed broadband which is expected to grow by 5.1 percent yearly; fixed voice with 1.3 percent growth; and Pay-TV with 1.1 percent.
Aasif Iqbal, Telecom Analyst at GlobalData, said, “4G services accounted for 80.4 percent of the total mobile subscriptions in 2021 and will remain the leading mobile technology through 2026.”
For 5G, GlobalData’s analyst also noted that it will, however, increase at a “brisk pace” over the forecast period, supported by 5G network expansion efforts by operators like PLDT and Globe Telecom across the country.
Meanwhile, GlobalData said that in the fixed communication services segment, fixed voice service revenue will increase over the forecast period, driven by the “subscription gains in the [Voice over Internet Protocol] VoIP segment.”
“Fixed broadband service revenue will also increase during the forecast period, driven by a steady rise in [fiber to the home] FTTH subscriptions, and continued growth in [digital subscriber line] DSL, cable internet, and fixed wireless subscriptions,” the data and analytics firm noted.
With this, Iqbal said, “The acceleration in the adoption of fiber-optic broadband services in the Philippines can be primarily attributed to the rising demand for high-speed data services and the expansion of fiber-optic network infrastructure by local government and service coverage by operators.”
For instance, he said, PLDT has added 489,000 new fiber subscriptions and has deployed 1.29 million new fiber ports in the first nine months of 2022.
With Globe Telecom’s “strong focus” on 4G/5G network expansions, the GlobalData analyst said the telco firm will continue to hold the top spot through the forecast period. He also noted that Globe led the mobile services segment in terms of subscriptions in 2021.
Meanwhile, Iqbal said PLDT topped the fixed voice and fixed broadband segments. He said, “in the fixed broadband segment, PLDT will continue to lead through 2026, supported by its strong position in DSL segment and its fast-expanding FTTH user base and keen focus on migrating its copper wire and hybrid fiber broadband service users to full fiber fixed broadband service. Cignal on the other hand led the pay-TV services market, in terms of subscriptions in 2021, thanks to its strong position in the DTH segment.”
On the other hand, GlobalData’s research reveals that the mobile voice service revenue in the country will decline over 2021-2026 in line with the “steady drop” in mobile voice average revenue per user (ARPU).
This, the data and analytics firm said, as mobile network operators (MNOs) extend unlimited voice minutes as part of their bundled plans.