Philippine telecommunications companies stand to increase revenues by as much as $650 million from the rollout of fifth-generation (5G) services starting 2025, a study commissioned by global technology firm Cisco revealed.
According to the study conducted by management consultancy firm Kearney, increased revenues will be driven by the expected 15% penetration rate for 5G in the Philippines by 2025.
This comes as 5G connections promise speeds of up to 50 times faster, 10 times more responsive, and much lower power connectivity than 4G.
"The Philippines is already a global leader in social media usage and Filipino consumers are spending billions of dollars on online shopping," said Karrie Ilagan, managing director for the Philippines at Cisco.
"The rollout of 5G services will not only give them experience but also increase the reach of digital connectivity across the country. Together, these trends will play a key role in boosting the Philippines' economic growth in the coming years," she elaborated.
Ilagan said the number of 5G subscriptions is expected to exceed 200 million in Southeast Asia by 2025, primarily led by Singapore."The rollout of 5G services will play a key role in accelerating the adoption and bring substantial benefits to the enterprises," she said
"At the same time, consumers are also eagerly waiting for 5G rollout for enhanced experience with content consumption on their personal devices," she added.
At present, incumbent telecom players in the Philippines are already gearing up to commercially launch 5G services.
Ayala-led Globe Telecom Inc. allocated a capital expenditure program of P63 billion in 2019, mainly to address data traffic growth and supporting LTE rollout.
Pangilinan-led PLDT Inc. allocated P78.4 billion, chunk of which was used to finance its network and information technology (IT) platforms.
Meanwhile, incoming third player Dito Telecommunity Corp. has vowed a minimum speed of 27 megabits per second and capital and operating expenses of P150 billion in its first year of operations.