Telecommunications duopoly challenger DITO Telecommunity Corp. is allocating P27 billion for its capital expenditure program next year to bankroll network buildup and commitments to the government.

DITO chief administrative officer Atty. Adel Tamano said the 2023 CAPEX would be way below the P50 billion that the company spent this year.

"For next year, I think (CAPEX) is still about P27 billion. This year, we (spent) P50 billion," Tamano told reporters, adding that next year's budget is still within the spending range committed to the government as the third telco.

With only three years in operations, Tamano said the company is still not yet profitable given the "Capex-intensive" nature of the telco business.

"If you take a look at the financials of DITO CME, bakit palaging lugi? What people have to understand is nakapa-capex intensive talaga ng telco. Isipin mo by the end of the fifth year, dapat umabot na ng $5 billion or P275 billion," Tamano said.

"That's something that the media should understand. If they are looking for us to be profitable in just three years of operations, it's not possible because of the number of investments," he added.

The China-backed DITO guns to have at least 25 million subscribers next year — more than double its current base of 14 million subscribers amid an aggressive network coverage expansion.

DITO surpassed its full-year 2021 target of 12 million as early as August.

DITO chief technology officer Rodolfo Santiago said the company wants to fulfill its commitments without overspending.

"We wanted to underspend but still achieve the commitment we've given the government. In the commitment period, efficiency is not penalized, and we want to achieve our commitment while spending less," Santiago said.