The total fixed communication services revenue in the Philippines is expected to increase at a compound annual growth rate (CAGR) of 2.5% from $3.6 billion in 2024 to $4.1 billion in 2029, mainly driven by the fixed broadband service segment, reveals GlobalData, a leading data and analytics company.

GlobalData’s Philippines Fixed Communication Forecast (Q1 2025) reveals that the fixed voice service revenue growth will decline over the forecast period with circuit switched services gradually becoming obsolete and overall voice ARPS too declining. Fixed broadband services revenue, on the other hand, will increase at a steady CAGR of 4.4% during 2024-2029.

Srikanth Vaidya, Telecom Analyst at GlobalData, says: “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 accounted for a majority 76% share of the total fixed broadband lines in 2024, which will increase to about 88% by 2029, supported by the government and operator investments on fiber network infrastructure and FTTH service expansions. For instance, PLDT in 2024, rolled out FTTH services in key tourist islands of the country including Negros Island, Bantayan Island in Cebu, and Camiguin Island.

“PLDT will lead the fixed voice services segment in terms of subscriptions through 2029. The operator will also top the fixed broadband services market, by subscriptions, supported by its strong position in DSL and FTTH service lines. The operator has earmarked a CAPEX of around PHP70 to 73 billion ($1.22 to $1.27 billion) for 2025, a portion of which it will be used to upgrade and expand its fiber broadband network.

For example, by December-end 2024, PLDT’s fiber network has reached over 18.5 million households in 73% of the country’s municipalities and towns. Moreover, PLDT has secured an additional funding of PHP2 billion ($34.4 million) social loan to extend its fiber coverage in fourth to sixth class municipalities, including Isolated and underserved communities.

Vaidya concludes: “The fixed communication services market in the Philippines is poised for growth, driven by technological advancements, regulatory support, and changing consumer behaviors. As the demand for high-speed and reliable internet continues to rise, providers are likely to focus on expanding their infrastructure and enhancing service offerings to remain competitive in this evolving landscape.”