Broadband market finally gains momentum
While the telecom sector in the Philippines has witnessed considerable investment and business activity since deregulation, the market has continued to fall short of its full potential. Nevertheless, there certainly has been a lot of activity, with the market often finding a different direction from what was envisaged. Despite competition from new carriers and mobile operators, PLDT has continued to be the Philippines’ dominant fixed-line and mobile provider. And as such has been a large part of the momentum in the country’s telecom market. Nevertheless, PLDT’s role has not gone unchallenged and in recent years Globe Telecom in particular has been pushing hard to overhaul the incumbent.
Over the last five years the Philippines mobile subscriber base has seen a moderate growth rate with a gradual easing of growth due to a maturing market.
A feature of the Philippines mobile market has been the near duopoly with Smart together with Globe Telecom maintaining a tight hold on the industry. Smart, in particular, as a subsidiary of Philippine Long Distance Telephone Co (PLDT) has a dominating presence in the market place. However Globe Telecom has bridged the gap significantly over the past two years.
The mobile networks provide more than 99% coverage of population. The local market has started to focus on value added services as a comparatively cautious rollout of 3G took place followed by the start of 4G/LTE network rollouts.
The two leaders in the mobile market, Smart Communications and Globe Telecom continued to compete vigorously in the marketplace; they were steadily improving their service quality in order to be even more competitive. The introduction of mobile broadband services was starting to provide more opportunities for expanding the sector.
A unique characteristic of the Philippines mobile market has been the large number of services available for Filipino working overseas. This is not surprising given that the national economy relies heavily on their remittances being sent back home. As with other markets throughout Asia, mobile phone ownership in the Philippines has for many years been boosted through the availability of prepaid services
There has also been good progress in the rollout of optical fibre infrastructure, although not on the national scale envisaged. In the meantime, the larger operators are building IP-based Next Generation Networks. Whilst the global financial problems presented some real challenges for the local telecom market, the negative impact seemed to have been put well behind now.
More than 80% of all internet connections were broadband-based services, representing a major shift in the broadband presence in the Philippines in recent years. Broadband subscription penetration as a proportion of the population is still only just over 11%. However after many years of sluggish growth, the broadband market in the Philippines has started to flourish. Broadband users in the Philippines have a number of high-speed internet access options available to them: Digital Subscriber Line (DSL), cable modem, Fixed Wireless Access (FWA), WiMAX and mobile data services. More recently, there has been a major push by market leader PLDT to offer fibre-based services; Globe has been trying to match the PLDT push where it can. Also the more recently launched mobile broadband services were providing a major and much-needed boost to the expansion. This report looks at the various projects and initiatives as the Philippine government continues to encourage the development of broadband in the country.
Whilst the overall rate of growth in broadband services in the Philippines remains strong, big questions hang over the market. Despite declining prices in both fixed and mobile broadband, this type of service is still not affordable for the majority of the population.
PLDT introduced a quad-play service, bundling a mobile package with its voice, data and fibre services.
Globe Telecoms uccessfully integrated its recently-acquired Bayan Telecommunications (Bayantel) subsidiary into its operations.
NTC approved a network sharing deal between Globe Telecom and ABS-CBN Corp.
the deal was part of ABS-CBN Corp’s plan to become the country’s ‘third telecom player;’
BellTel was making a move to become the Philippines’ fourth mobile operator after PLDT, Globe and ABS-CBN Mobile.
continuing growth in mobile broadband usage.
both Smart and Globe were pushing on with development of cloud computing platforms.
the Philippines was moving to legislate on the issue of minimum broadband speeds.
Smart was leading the deployment of 4G LTE mobile services across the country, with its 4G network covering more than 85% of the population.
PLDT’s strong market position has slipped to some extent
Globe has been notably successful in its push to increase market share.
Companies mentioned in this report:
PLDT, Smart Communications, Globe Telecom, Liberty Telecom, Bayantel, Bell Telecom (BellTel), Digitel, Eastern Telecom (ETPI), Innove (Globe), PT&T, ABS-CBN Corp.
1. Key statistics
1.1 Country overview
2. Telecommunications market
2.1 Market Overview and Analysis
3. Regulatory environment
3.1 Regulatory authority
3.1.1 National Telecommunications Commission (NTC)
3.1.2 Commission on Information and Communications Technology (CICT)
3.1.3 Proposed Department of Information and Communications Technology (DICT)
3.2 Telecom sector liberalisation
3.3 Regulatory developments 2012 - 2015
3.3.1 NTC prepares to enforce internet service standards
3.3.2 Operators faced with major compensation bills
3.3.3 Network sharing
3.3.4 Anti-cable tapping law
3.3.5 Foreign ownership rules
3.3.6 Misleading and Deceptive Conduct
3.4.2 Domain names
3.4.3 Minimum internet speeds
3.4.4 Cybercrime legislation
4. Fixed network operators
4.1 Philippine Long Distance Telephone Company (PLDT)
4.2 Globe Telecom
4.2.4 Operational Statistics
4.3 Bell Telecom
4.4 Eastern Telecommunications Philippines Inc (ETPI)
4.6 ABS-CBN aiming to be third telecom player'
5. Telecommunications infrastructure
5.1 Overview of the national telecom network
5.1.1 Internet exchanges
5.2 Fixed-line statistics
5.3 New developments
5.3.1 National Broadband Network (NBN)
5.3.2 Next Generation Networks (NGNs)
5.3.3 Fibre Networks
5.4 International infrastructure
5.4.2 International gateways
5.4.3 Satellite systems
5.4.4 Very Small Aperture Terminal (VSAT) services
5.5 Specific IT developments
5.5.1 Data Centres
5.5.2 Cloud Computing
6. Broadband market
6.1 Introduction and statistical overview
6.1.1 Market Overview and analysis
6.1.2 Broadband statistics
6.1.3 Forecasts broadband subscribers 2015; 2018; 2021
6.2 Fixed Broadband Service Providers
6.2.1 Philippine Long Distance Telephone Company (PLDT)
6.2.2 Globe Telecom
6.2.3 Liberty Telecom / Wi-tribe
6.2.4 Support for internet-based businesses
6.3 Fixed Broadband Technologies
6.3.1 Digital Subscriber Line (DSL) networks
6.3.2 Other fixed broadband services
7. Digital media
7.2.1 Key trends and developments
7.2.2 Statistical information
7.3 Social media
7.4 Communications: VoIP, messaging, conferencing
8. Mobile communications
8.1 Market Overview and Analysis
8.2 Mobile statistics
8.2.1 General statistics
8.2.2 Mobile Operator statistics
8.2.3 Mobile voice
8.2.4 Mobile ARPU
8.2.6 Other Issues
8.3 Mobile infrastructure
8.3.1 Digital networks
8.4 Major mobile operators
8.4.2 Philippine Long Distance Telephone Company (PLDT)
8.4.3 Globe Telecom
8.4.4 NOW Telecom (Next Mobile)
8.5 Mobile content and applications
Table 1 Country statistics 2016
Table 2 Telephone network statistics 2015
Table 3 Broadband statistics 2015
Table 4 Mobile statistics 2015
Table 5 National telecommunications authorities
Table 6 Philippines' GDP real growth rate 2006 - 2016
Table 7 PLDT's capital expenditure 2008 - 2015
Table 8 PLDT fixed-line subscribers 2001; 2005 - 2015
Table 9 Globe Telecom's capital expenditure 2012 - 2015
Table 10 Historical - Globe Telecom fixed-line subscribers 2002 - 2007
Table 11 Globe Telecom fixed-line subscribers 2008 - 2015
Table 12 Historical - Fixed lines in service and penetration 1994 - 2004
Table 13 Fixed lines in service and penetration 2005 - 2015
Table 14 Historical - Fixed lines proportion of urban and residential subscribers 2007 - 2014
Table 15 Historical - Fixed lines installed versus lines in operation 1995 - 2004
Table 16 Historical - Fixed lines installed versus lines in operation 2005 - 2014
Table 17 Broadband subscribers (millions) by major service provider 2011 - 2015
Table 18 Broadband subscribers market share by major service provider 2011 - 2015
Table 19 Broadband subscribers (millions) fixed vs wireless access 2011 - 2015
Table 20 Historical - Internet subscribers 1996 - 2012
Table 21 Percentage of households with computer 2002 - 2015
Table 22 Forecast broadband subscribers and penetration rates 2016; 2018; 2021
Table 23 PLDT's broadband subscribers 2005 - 2015
Table 24 PLDT's fixed broadband subscribers 2008 - 2015
Table 25 Historical - PLDT's DSL subscribers 2001 - 2004
Table 26 Historical - PLDT's DSL subscribers 2005 - 2013
Table 27 PLDT's wireless (mobile) broadband subscribers 2007 - 2015
Table 28 PLDT broadband ARPU by unit/contract type 2013 - 2015
Table 29 Smart's wireless broadband subscribers 2005 - 2015
Table 30 Sun Cellular / Digitel's broadband subscribers 2011 - 2015
Table 31 Globe Telecom broadband subscribers 2007 - 2015
Table 32 Historical - Globe Telecom's DSL subscribers 2009 - 2014
Table 33 Globe Telecom's wireless subscribers 2009 - 2015
Table 34 Globe Telecom fixed broadband subscribers 2014 - 2015
Table 35 Historical - DSL subscribers 2001 - 2015
Table 36 Historical - Cable modem subscribers 2005 - 2015
Table 37 FttH subscribers 2005 - 2015
Table 38 Key broadcasting statistics
Table 39 Historical - Total mobile subscribers and penetration rate 1994 - 2004
Table 40 Total mobile subscribers and penetration rate 2005 2015
Table 41 Mobile services revenue 1993 - 2015
Table 42 Mobile operators and systems
Table 43 Mobile subscribers (millions) - major operators 2015
Table 44 Mobile market share - major operators 2015
Table 45 Historical - Mobile subscribers by operator 2009 - 2012
Table 46 Globe Telecom mobile subscribers - prepaid v. postpaid March 2015
Table 47 PLDT prepaid and postpaid mobile subscribers March 2015
Table 48 Mobile ARPU (PHP/month) by operator/unit 2014 - 2015
Table 49 Forecast mobile subscribers and penetration rates 2016; 2018; 2021
Table 50 PLDT total mobile subscribers 2006 - 2015
Table 51 PLDT prepaid and postpaid mobile subscribers - 2015
Table 52 PLDT mobile subscribers by operator unit/contract type 2015
Table 53 PLDT mobile ARPU by operator/contract type 2015
Table 54 Smart mobile subscribers 2010 - 2015
Table 55 Talk N Text mobile subscribers 2002 - 2015
Table 56 Historical - Globe Telecom mobile subscribers 2001 - 2009
Table 57 Globe Telecom mobile subscribers 2010 - 2015
Table 58 Globe Telecom mobile subscribers - prepaid v. postpaid Dec 2015
Table 59 Globe Telecom mobile ARPU by contract type 2014 - 2015
Chart 1 Total broadband subscribers and annual growth - 2011 - 2015
Chart 2 - Broadband subscribers (millions) by major service provider 2011 - 2015
Chart 3 - Broadband subscribers (millions) fixed vs wireless access 2011 - 2015
Chart 4 - Total mobile subscribers and annual growth 2005 - 2015
Exhibit 1 Major submarine cables with landing points in the Philippines - 2014
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PLDT, Smart Communications, Globe Telecom, Liberty Telecom, Bayantel, Bell Telecom (BellTel), Digitel, Eastern Telecom (ETPI), Innove (Globe), PT&,T, ABS-CBN Corp.
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