Manuel V. Pangilinan (MVP) just dropped a big warning about the local telecom industry. The PLDT big boss said that having four major telcos in the Philippines is too much for our small market, suggesting that the companies might need to merge to survive.
Pangilinan explained that the current business setup is hard to keep going. Major providers keep spending big money to build cell towers and improve internet networks every year. However, they do not make enough money back because the market is just too small for everyone.
This warning comes right after local telco companies shared lower earnings for the first nine months of the year. PLDT, Globe Telecom, and Converge ICT all reported drops in their net income. Meanwhile, Dito Telecommunity is still working hard to turn a profit after posting huge losses earlier in the year.
Because of rising prices and a weak peso, many people are tightening their budgets and spending less. Pangilinan noted that companies might raise service fees to cover their costs. However, that move will come with a big risk as cash-strapped users might just switch to cheaper prepaid promos or other budget alternatives.
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In the long run, Pangilinan believes the industry will need to combine companies so only a few major players remain. You might notice changes in your mobile data plans, promos, and internet choices as these giant tech firms figure out their next moves.
