MVP says Philippine telco market cannot sustain four players
PLDT Inc., Globe Telecom Inc., Converge ICT Solutions Inc. and Dito Telecommunity Corp. may have to consider consolidation as PLDT chairman and chief executive officer Manuel V. Pangilinan warned that four competing telecommunications operators may struggle to generate sufficient returns from the Philippine market.
Pangilinan said the industry should begin discussing consolidation, suggesting that one or two players may eventually have to give up their businesses as companies continue spending heavily on network infrastructure without guaranteed returns.
“At some point, there’ll be fewer than the four of us in the long run,” Pangilinan said.
He described the existing business model as unsustainable, given the number of providers serving Filipino consumers and the capital required to maintain and expand their networks.
“I think the current business model we’re seeing – four telcos serving a very small market – is untenable for each of us. We have to consolidate, [and] one or two of us must give up at some point,” he said.
His remarks come as major telecommunications companies reported weaker earnings for the first nine months of 2026.
PLDT’s telco core income declined 6% to P25.02 billion, while Globe recorded a 7% drop in net income to P16.5 billion despite a 6% increase in service revenues to P129 billion. Converge posted a 9% decline in net income to P8.1 billion, even as revenues grew 3.9% to P34.2 billion.
Dito's parent company, Dito CME Holdings Inc., has yet to release its third-quarter results. Dito reported a net loss of P11.29 billion in the first half of 2026, nearly three times its loss a year earlier.
Pangilinan also expressed a cautious outlook for 2027, citing political uncertainty, inflation and a weaker peso, which have weighed on consumer spending. While operators could raise prices to protect margins, doing so risks pushing cost-conscious customers toward cheaper alternatives.
PLDT is allocating capital expenditure in the mid-P50-billion range this year, while Converge has set a P17-billion to P20-billion budget for 2026.