Christy Balita
Research expert covering the Philippines
Telecommunications industry in the Philippines - statistics & facts
In a world where connectivity is key, the telecommunications industry turned out to be one of the most essential industries, as it enabled personal and professional communication and was a key tool used by businesses. In the Philippines, improved telecommunications infrastructure facilitated digital transformation, spanning innovations in banking and finance, media and entertainment, and mobility. Thanks to the roll-out of the 5G network and the introduction of a third telecommunications provider, the industry has seen growth in succeeding years, as reflected in the sector’s increasing gross value added contribution to the Philippine economy.
Meanwhile, the 5G network was introduced at the beginning of 2020, and mobile network operators have started offering this technology to their customers. Across the globe, the Philippines ranked next to China and the United States according to the number of cities covered by the 5G network. Although its average download and upload speed remains meager compared to its neighboring countries in the region, the 5G connection is expected to continue improving in the following years.
The state of telecommunications infrastructure
The Philippines’ telecommunications infrastructure is still on its way toward reaching its goal of being a global communications hub. With a focus on the mobile market, the government pushes to improve the roll-out of mobile networks by introducing a common tower policy that will delist the telecommunications sector as a public utility. As of December 2020, the Philippines had nearly 23,000 combined cell towers operated by leading telecom companies. With the implementation of the common tower policy, the majority of these towers were sold to tower companies so they could be shared with other telecom operators to increase tower density. This ultimately leads to fair and equal access to digital services that were previously limited to the telecom provider and will also aid the government's Free Public Internet Access Program. In 2019, the mobile network in the Philippines was dominated by either 3G or 4G connections, while rural areas were limited to either 2G or 3G network access.Meanwhile, the 5G network was introduced at the beginning of 2020, and mobile network operators have started offering this technology to their customers. Across the globe, the Philippines ranked next to China and the United States according to the number of cities covered by the 5G network. Although its average download and upload speed remains meager compared to its neighboring countries in the region, the 5G connection is expected to continue improving in the following years.
Major telecommunications providers
The industry has long been dominated by a duopoly between PLDT and Globe Telecom, which provide fixed-line networks, fixed broadband, and mobile network services. Challenging the duopoly was Dito Telecommunity, which is partly owned by Chinese state-owned China Telecom. Dito started its commercial operation in March 2021 with a focus on mobile services and has announced plans to offer high-speed broadband services in 2022. In terms of mobile internet speed, Smart Communications, a subsidiary of PLDT, took the lead among other mobile network providers according to median download speed in the fourth quarter of 2023. Meanwhile, Converge ICT vested other operators with having the fastest fixed network connection in the same period. Overall, PLDT was the leading internet service provider in the Philippines as of September 2023, based on download speed.
