Globe Telecom and PLDT expect competition in the market to get tougher next year with the targeted commercial launch of the third telco player and strengthened status of Converge ICT Solutions Inc. in the broadband space.
This was according to top officials of the dominant carriers, with Globe President and Chief Executive Officer Ernest Cu saying competition in the home broadband would “intensify”.
“Previously, the two telco incumbents were focused on wireless competition but I think we are now focused on the fiber to the home on our sites,” Cu said during a virtual press briefing last November 4.
The dominance in the segment would be based on who can deploy much quicker and deliver to the public, the Globe official said.
“Competition will be intense, we have not seen this in the past. It will be very intense in 2021,” Cu said.
This view was echoed by PLDT chief Manuel V. Pangilinan during the group’s financial briefing last November 5.
“I think Dito will launch … next year. Converge just finished their IPO (initial public offering), so they are probably in a better position to compete next year. Globe will probably be more competitive next year. So we anticipate the competition to be intense,” Pangilinan said, referring to Dito Telecommunity.
But debt watcher Fitch Ratings said competition in the local market may remain “stable” in 2021. The competition will get tight “in the medium-term as new entrants expand coverage.”
Dito Chief Administrative Officer Adel Tamano late in October said the group may commercially launch “a little earlier” than the March 2021 deadline.
Converge ICT, on the other hand, debuted on the Philippine Stock Exchange last October 26. As of September, its network already reached 5.1 million homes.