06 Mar 2020
Posted in Technology
Mobile data services and fixed broadband to drive telecom service revenue growth in Philippines through 2019-2024, says GlobalData
The total telecom and pay-TV services revenue ($US) in the Philippines is set to grow at a compound annual growth rate (CAGR) of 4.09% between 2019 and 2024, mainly supported by the rising adoption of mobile data and fixed broadband, says GlobalData, a leading data and analytics company.
According to GlobalData’s Fixed Communications, Mobile Broadband and Pay-TV Forecast Packs, fixed broadband will be the fastest growing segment in terms of revenue.
Amit Sharma, Project Manager of Telecoms Market Data & Intelligence at GlobalData, says: “Although mobile data will be the second fastest growing segment, it will be the largest revenue-contributing segment to the country’s telecom and pay-TV services market during the forecast period.”
The growth in mobile data revenues is driven by the growing adoption of 4G services and machine to machine (M2M) / Internet of Things (IoT) subscriptions. Moreover, the projected growth in 5G services that result in higher average revenue per user (ARPU) will also contribute to the growth of mobile data revenues.
The number of smartphone subscriptions has also grown as a result of improvement in the bandwidth of mobile broadband. By the end of 2019, there were an estimated 118 million smartphone subscriptions in the Philippines, which are forecast to increase to 144 million by 2024. M2M/IoT subscriptions are expected to grow from 3.5 million to 8.5 million at a CAGR of 19% during the forecast period, primarily driven by the improvement in mobile network connectivity, for example Globe is investing in NB-IoT technology.
The share of fixed broadband in the total telecom revenue will increase from 23% in 2019 to 30% by 2024. The major driver for the growth will be the ongoing investments by the operators such as PLDT and the government in fiber-to-the-x (FTTx) technology.
Sharma concludes: “The mobile and fixed communication subscriptions penetration will continue to rise in the Philippines, driven by the expansion of 4G mobile network coverage by mobile network operators, steady growth in smartphone subscriptions and the ongoing investments in telecom infrastructure.”