MVP: 4 players in PHL telco ‘untenable’

Owners of telecom companies in the Philippines have finally realized the bare truth—that the Philippine market is not big enough for four players.

Thus,  PLDT Inc. chairman Manuel V. Pangilinan has called for consolidation in the Philippine telecommunications industry, warning that a four-player market is no longer sustainable amid sluggish revenue growth and heavy capital requirements.

With industry expansion stuck at around 1 percent to 3 percent, telecom operators are struggling to generate adequate returns while funding continuous network upgrades.

“This is untenable for each of us. We have to consolidate, or one of us, two of us have to give up at some point,” Pangilinan told reporters during PLDT’s financial briefing on Thursday.

Operators face constrained consumer and business spending even as competitive pressures force them to keep pouring money into infrastructure without matching gains in profitability, he added.

PLDT’s latest results underscore those headwinds. Net income attributable to equity holders fell 8 percent in the first nine months of 2026 to P21.67 billion from P23.65 billion a year earlier, as higher expenses and depreciation offset modest top-line growth.

Consolidated revenues rose 2 percent to P166.21 billion from P163.19 billion, supported by sustained demand for data and broadband services.

Service revenues climbed 2 percent to P161.25 billion, while net service revenues—after deducting interconnection costs—edged up 1 percent to P146.9 billion. Data and broadband accounted for 86 percent of net service revenues at P126.5 billion.

Total expenses, however, increased 3 percent to P127.5 billion from P123.62 billion due to higher depreciation and amortization, device costs, asset impairment, and interconnection charges.

Consolidated core income slipped 4 percent to P24.43 billion from P25.58 billion, partly cushioned by a stronger contribution from digital financial platform Maya and gains from asset sales.

In the third quarter, consolidated revenues inched up 0.9 percent to P54.20 billion from P53.69 billion, lifted by a 51.2 percent surge in non-service revenues to P1.68 billion.

Gross service revenues were nearly flat at P52.52 billion compared with P52.58 billion a year earlier, though net service revenues edged up 0.7 percent to P49.13 billion as interconnect expenses fell 11.1 percent to P3.39 billion.

Management has been directed to keep fourth-quarter performance at least on par with the third quarter, Pangilinan said, adding that PLDT hopes to carry that momentum into 2027.

Still, the group expects a tougher operating environment next year and plans to exercise tighter discipline in capital spending to balance network investments against returns.