Fixed broadband ARPU will increase from an estimated US$25.16 in 2020 to US$29.96 in 2025.
The fixed communications services market in the Philippines will remain fairly resilient against the COVID-19 crisis in 2020 and its revenue is poised increase at a compounded annual growth rate (CAGR) of 15.9 per cent to reach US$6.0bn in 2025, mainly driven by the strong growth in fixed broadband segment, according to data and analytics company, GlobalData, a leading data and analytics company.
In the Philippines Telecom Operators Country Intelligence Report, GlobalData reveals that while fixed voice revenue in the Philippines will continue to decline, fixed broadband service revenues will increase at a robust CAGR of 19.0 per cent over the 2020-2025 period, driven by the steady growth in broadband subscriptions and rising broadband average revenue per user (ARPU) levels.
Fixed broadband ARPU will increase from an estimated US$25.16 in 2020 to US$29.96 in 2025 due to the rising adoption of higher value fibre optic services. Fixed voice ARPU, on the other hand, is expected to drop from US$5.77 in 2020 to US$3.46 by 2025.
Aasif Iqbal, telecom analyst at GlobalData said, although DSL is the primary technology to deliver fixed broadband services in the Philippines in 2020, fibre broadband lines will expand at the fastest CAGR of 21.4 per cent over the forecast period.
“Growth in fibre broadband lines will be driven by the government’s investments on fibre network infrastructure and FTTH service expansions by operators such as PLDT and Globe Telecom,” he said.
PLDT will lead the fixed voice market through 2025, supported by its strong foothold in VoIP segments while its leadership in the fixed-broadband segment will be essentially due to its leadership position in both DSL and fast growing FTTH segments.
Tags: Globe TelecomPLDT
