“This is untenable’: MVP sees telecom consolidation as slowing growth squeezes profits

Insider Spotlight

• PLDT chair Manuel V. Pangilinan sees telecom consolidation as inevitable, warning that the Philippine market may no longer sustain four major operators.
• Sluggish revenue growth and mounting pressure on profits are squeezing telecom companies despite billions of pesos in network investments.
• Pangilinan expects fewer than four major operators in the long run, suggesting some players may eventually have to exit or combine operations.

Slowing revenue growth and mounting pressure on profits could force consolidation in the Philippine telecom industry, with PLDT chair and CEO Manuel V. Pangilinan warning that the market may no longer be able to sustain four major operators.

“We have four telcos serving a very small market,” Pangilinan told reporters during the company’s quarterly briefing on Thursday. 

“This is untenable for each of us, right? We have to consolidate. Or one of us, two of us, we have to give up at some point.”

Fewer players ahead

“So, at some point, there’ll be fewer than four of us in the long run,” Pangilinan said.

Asked how many operators would ideally serve the Philippine market, he quipped: “Start with one.”

Manuel V. Pangilinan 

PLDT chair, CEO 

Growth under pressure

The warning comes as PLD (which operates Smart Communications), Globe Telecom, DITO Telecommunity and Converge ICT compete in an industry growing at a single-digit pace despite billions of pesos in continuing network investments.

“We have to find a solution because you can’t be spending on projects without adequate returns,” Pangilinan said.

In the first nine months of 2026, major telecom operators reported modest revenue growth, with profitability under pressure.

• PLDT’s gross service revenues rose 2 percent to P161.2 billion, while operating earnings grew just 1 percent.
• Globe Telecom’s service revenues climbed 6 percent to P129 billion, but net income fell 7 percent to P16.5 billion.
• Converge ICT’s revenues increased 3.9 percent to P34.2 billion, while net income declined 9 percent to P8.1 billion.

DITO has yet to release its latest financial results. 

More competition ahead

The Konektadong Pinoy Act could add to these pressures by easing entry barriers for new internet service providers and opening the market to more competition.

No major new nationwide operator has emerged under the law so far, although Elon Musk’s Starlink already offers satellite internet services in the Philippines.

Major telecom operators have opposed the Konektadong Pinoy Act in its current form, warning that new entrants could ride on their costly network investments without shouldering the same financial burden.

 —Edited by Miguel R. Camus