Fixed wireless access seen telco growth area
‘We are seeing stronger traction and better reception for our services, and that’s translating to faster conversions. Because of this momentum, we believe we can be a bit more ambitious.’
‘We are seeing stronger traction and better reception for our services, and that’s translating to faster conversions. Because of this momentum, we believe we can be a bit more ambitious.’
DITO Telecommunity Corp. has targeted one-million fixed wireless access (FWA) subscribers by next year as part of efforts to boost its 5G services nationwide.
Parent, DITO CME Holdings Corp., successfully raised P2.05 billion through a recent follow-on offering (FOO).
The fully subscribed FOO attracted strong demand from institutional investors while continuing to garner robust support from retail investors.
“Our initial target is one-million in the short term, which we define as around one to one and a half years. Right now, we’re seeing that we have the capacity — in fact, we have abundant capacity,” DITO CEO Eric Alberto said during a recent media briefing.
FWA is a type of internet connectivity that delivers high-speed broadband to homes or businesses using wireless signals instead of cables.
This year alone, DITO has allocated around P10 billion to P15 billion to expand FWA services through its standalone 5G network, which is now about 86 to 87 percent complete, to reach areas where fiber rollout is not feasible.
DITO currently has 250,000 WiFi subscribers, which is expected to rise to 300,000 by the end of the year.
“We are seeing stronger traction and better reception for our services, and that’s translating to faster conversions. Because of this momentum, we believe we can be a bit more ambitious,” Alberto said.
DITO committed to expand
He added that capital expenditures for the year would depend on market demand as the company continues to scale up. DITO is also targeting a 30 percent market share in the medium term.
“In a three-horse race, that should be a rightful market share… There is room for everybody because the consumers are also using more data,” he said.
DITO Tel is projected to post positive full-year EBITDA by the end of 2025 and turn profitable by 2028. To date, the company has 14.87 million mobile subscribers.
With this financial boost, DITO Tel is projected to achieve around 45 percent revenue growth year-on-year this year, despite the industry’s intense competition.
“We would like to thank the investing public for their steadfast support, which enabled the success of the FOO,” DITO CME chairperson Dennis Uy said
The FOO follows the entry of a new investor last year, which, together with this fresh capital, strengthens DITO’s financial position. The company remains on track to achieve profitability by 2027.
According to DITO CME President and COO Donald Patrick L. Lim, DITO Tel has built a 4G-5 G network from the ground up.
“Nearly 14 million Filipinos are now DITO users and enjoy fast and reliable telecom services,” he said.
