MVP Proposes Telcos Mergers, Says 4 Players In Philippines ‘Too Many’

PLDT chief Manuel V. Pangilinan has floated an idea that may raise the eyebrows of rivals – that the Philippine telco industry needs to consolidate and some have to eventually go.

Pangilinan said on Thursday, Nov. 12, the industry may have to consider consolidating now, suggesting that two players have to give up their businesses in the long term.

He flagged the lower profits sustained by PLDT, Globe Telecom Inc. and Converge ICT Solutions Inc. in the nine months to September, saying this shows the industry is struggling.

Dito Telecommunity Corp.’s parent Dito CME Holdings Inc. is yet to release its financial report for the third quarter. However, Dito is nowhere close to becoming profitable, having tripled its net loss to P11.29 billion in the first half.

As such, Pangilinan said this may be the time for the industry to come together and discuss what is to gain from consolidation.

He warned that operating as four separate providers would require spending on network infrastructure yearly without assurance of adequate returns.

“At some point, there would be fewer than the four of us in the long run,” Pangilinan said.

PLDT is spending in the mid-P50-billion range in capex this year, while Globe committed under $1 billion, almost the same as PLDT’s budget.

Converge, for its part, plotted P17 billion to P20 billion for capex in 2026, but has spent just P9.9 billion to date due to delays in some projects.

“I think the current business model we’re seeing – four telcos serving a very small market – is untenable for each of us. We have to consolidate, [and] one or two of us must give up at some point,” Pangilinan said.

Right now, Pangilinan has a pessimistic view for the industry in 2027.

Apart from economic risks, the tycoon said business is dragged by political uncertainties, as senators deliberate on the impeachment of Vice President Sara Duterte.

Demand for telco services has been hurt by rising prices and a weak peso, shrinking the wallets of Filipinos and making them cut on some spending.

Telcos have the option to hike prices to stem losses, but they risk giving up sensitive consumers who prefer the cheapest alternative