Fixed communication service revenue in Philippines to grow at a CAGR of 5.2%

The total fixed communication services revenue in the Philippines is expected to increase at a compound annual growth rate (CAGR) of 5.2% from $3.8 billion in 2023 to $4.9 billion in 2028, mainly driven by the strong growth in fixed broadband segment, according to GlobalData, a leading data and analytics company.

GlobalData’s latest Philippines Fixed Communications Forecast (Q2 2023) reveals that the fixed voice revenue growth will remain stagnant and register a mere 0.8% CAGR over the forecast period 2023-2028. This is due to a steady decline in circuit switched subscriptions and drop in fixed voice average revenue per subscriber (ARPS) as a result of growing consumer preference for mobile/internet-based communications and free voice minutes bundled as a part of operators’ fixed bundled plans.

Srikanth Vaidya, Telecom Analyst at GlobalData, comments: “Fixed broadband services revenue, on the other hand, will increase at a healthy CAGR of 6.4% during 2023-2028, driven by the steady growth in broadband subscriptions, especially higher-ARPS yielding fiber broadband subscriptions.”

Fiber lines accounted for a majority of 61% share in the total fixed broadband lines in 2023, which will increase to about 71% by 2028, supported by the government and operator investments on fiber network infrastructure and FTTH service expansions. Global Data