Philippines Telecom Towers Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 26.26 Thousand units |
| Market Volume (2029) | 28.95 Thousand units |
| CAGR (2024 - 2029) | 1.97 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Philippines Telecom Towers Market Analysis
The Philippines Telecom Towers Market size in terms of installed base is expected to grow from 26.26 Thousand units in 2024 to 28.95 Thousand units by 2029, at a CAGR of 1.97% during the forecast period (2024-2029).
- The Philippines boasts a rapidly expanding mobile penetration rate. The growing affordability and accessibility of smartphones, combined with a rising demand for mobile connectivity, necessitate an increase in telecom towers. This expansion aims to ensure adequate coverage and capacity for the nation's burgeoning mobile subscriber base. While 99% of the 114-million-strong population owns a smartphone, only 70% engage with the internet via these devices. As reported by the Department of Information and Communications Technology (DICT), the country's primary ICT planning and implementing agency, internet penetration stands at 72.7%.
- Moreover, being an archipelago with thousands of islands, the Philippines faces unique challenges in network coverage. Ensuring reliable mobile connectivity across its diverse regions demands extensive infrastructure. Here, telecom towers are pivotal, not just for broadening network coverage but also for bridging the connectivity divide in remote and rural locales.
- Furthermore, driven by surges in social media engagement, e-commerce expansion, and a broader digital shift, the Philippines showcases a robust appetite for internet services. Telecom towers are vital in this landscape, facilitating broadband connectivity, bolstering data-heavy services, and enhancing internet access—especially in regions lacking wired infrastructure. StatCounter highlights the dominance of Facebook in the Philippine social media arena, capturing a notable 88% share in 2023. This trend underscores the platform's growing user base and its expanding reach for social advertising.
- In addition, as video streaming, online gaming, and digital content consumption gain traction, the Philippines witnesses a marked uptick in data consumption. Telecom towers are indispensable to meet this escalating demand, bolstering network capacity and ensuring swift, reliable data transmission.
- Amidst robust economic growth and a sweeping digital transformation across industries, the Philippines underscores the escalating need for dependable communication networks. This demand fuels the necessity for telecom towers, ensuring enhanced connectivity for both businesses and individuals. The Philippine Statistics Authority noted that the Philippines wrapped up 2023 as Southeast Asia's fastest-growing economy, achieving a commendable 5.6% growth rate—slightly below the government's 6.0 to 7.0% target. If projections hold, the nation is poised for another significant growth spurt in 2024, showcasing its resilience against global economic headwinds.
- However, telecom towers require an uninterrupted power supply to ensure 24x7 network availability, fulfilled mainly by electricity, batteries, and diesel generators. The environmental impacts of telecom towers have always been a significant concern. Radiation from mobile towers has been an important issue, and it is recognized as an unseen and subtle pollutant affecting life forms in multiple ways. Moreover, using non-renewable sources to run power systems, such as diesel, significantly pollutes the environment.
Philippines Telecom Towers Market Trends
5G Deployment to Address the Increasing Market Demand
- With the growing mobile internet users and IoT connections, the demand for improved and advanced telecom infrastructure is also increasing in the country. The evolution of cellular network technology has allowed users to experience faster data speeds and lower latency and has prompted rapidly increasing use of services and data-heavy applications.
- Moreover, the significant rise in the volume of data being carried by cellular networks has been primarily driven by consumer demand for video and business and consumer moves to cloud services. This factor is expected to drive the need for a more resilient and stable network, such as the 5G connection that offers fast and high-capacity networks.
- Compared to 4G LTE, 5G may bring lower latency, higher bandwidths, and increased connectivity to mobile broadband. 5G connections may make more data travel faster over broader coverage areas. 5G bandwidths are projected to be ten times higher than 4G LTE, contributing to faster data transmission, images, and videos. Hence, the growth in the deployment of 5G globally is further expected to accelerate the demand for telecom towers during the forecast period.
- For instance, the International Finance Corporation (IFC) invested USD 70 million in Communication and Renewable Energy Infrastructure (CREI) Phils Inc. This funding was estimated to facilitate the construction of over 600 towers by 2023. Analysts suggest this move could revive the local mobile communication sector. With costs and infrastructure being jointly utilized by other telecom providers, the World Bank Group's private sector arm emphasized that this investment package is designed to bridge the digital divide via a shared mobile infrastructure.
- Moreover, the Department of the Interior and Local Government (DILG) stated that in September 2023, a total of 8,311 permits and clearances to build cellular towers of telecommunications companies were permitted by 668 local government units (LGUs) across the country. In the statement, the secretary of DILG stated that as of September 2023, another 2,404 permits were still being processed in 229 cities and towns. Such expansions are expected to drive the demand for the market studied over the forecast period.
- Furthermore, in November 2023, PhilTower and Huawei solidified their strategic partnership during the 10th Annual TowerXchange Meetup Asia in Malaysia, signing a memorandum of understanding (MoU) to improve Digital, Smart, and Green Tower initiatives. The partnership aims to uplift innovative tower and intelligent energy solutions, strengthening both companies’ industry-leading capabilities.
- Such developments, increased data traffic, growing connected devices, and rollout of 5G services across the world are anticipated to significantly boost the demand for telecom towers to cater to the growing data needs in the future.
The Rooftop Segment to Witness Growth
- Mobile network operators (MNOs) will need to make significant infrastructure investments for 5G to expand, and rooftop infrastructure will be essential to these investments. Building facades and rooftops are ideal real estate for MNOs wishing to densify their networks and expand their capacity or coverage. Antennas on the 5G network can deliver 5G signals straight to customers through a more significant line of sight on rooftops in an urban setting. In this approach, 5G reception can be reliably obtained by people and devices on the ground and close to the boundaries of surrounding buildings.
- As mobile network operators upsurge 5G capabilities, rooftops will play a key role. The growth of 5G will require massive infrastructural investment by mobile network operators (MNOs), and rooftop infrastructure is expected to play a pivotal role in this investment. For instance, in August 2023, a Telenor Group survey on mobile device usage in the Philippines revealed that 38% of respondents relied on a 5G connection. Conversely, 10% reported not using a 5G network at all.
- Moreover, according to Viavi Solutions, as of April 2023, 105 cities in the Philippines boasted 5G network coverage, marking an increase from the previous year. To enhance network services for their clients and harness the full potential of this technology, all three major telecommunication providers have been rolling out 5G networks across the nation.
- However, with space constraints and rising land costs, rooftop towers have found higher attractiveness amongst telecom tower players and mobile network operators. The initial implementation of telecom towers is the backbone component that enables the rolling out of these technologies but also incurs high costs. Therefore, the market players are adopting different strategies for cost-effective deployments of telecom towers.
Philippines Telecom Towers Industry Overview
The Philippine telecom towers market is moderately consolidated and consists of a few players, such as Philippine Long Distance Telephone Company (PLDT), Globe Telecom Inc., Digital Telecommunications Phils. Inc., Converge Information and Communications Technology Solutions Inc., Ericsson Telecommunications Inc., Radius Telecoms Inc., and N-Wave Technologies Philippines Inc. These players in the Philippine telecom towers market are expanding their customer base through strategic collaborations and acquisitions of telecom tower startups. This has led to a moderately high market concentration, with a few dominant players benefiting from significant market share and profitability.
- Feburary 2024: NOW Telecom Company Inc. and Rakuten Symphony signed a memorandum of understanding (MoU) to establish a collaborative framework for the deployment of a 5G Open RAN pilot deployment in the Philippines. The MoU was signed on day 1 of the Mobile World Congress (MWC) at the Fira Gran Via in Barcelona, Spain, held from February 26 until February 29, 2024. The MWC is the largest and most influential connectivity event in the world hosted by the GSM Association and draws more than 100,000 visitors from over 190 countries. Under the terms of the agreement, Rakuten Symphony and NOW will collaborate with the aim of developing disaggregated networks and open interfaces in the Philippines.
- Janurary 2024: KDDI Philippines confirmed its role in deploying telecom infrastructure for the country's inaugural subway transport network. The subsidiary of Japan's KDDI announced its involvement in January 2024. The subway will link Valenzuela in the north to Parañaque in the southern part of metropolitan Manila. KDDI's telecom infrastructure will support the 30 km network, which encompasses fifteen stations from East Valenzuela to NAIA (Ninoy Aquino International Airport) Terminal 3, along with the depot and operations control center.
Philippines Telecom Towers Market Leaders
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Philippine Long Distance Telephone Company (PLDT
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Globe Telecom, Inc.
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Digital Telecommunications Phils., Inc.
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Converge Information and Communications Technology Solutions, Inc.
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Ericsson Telecommunications, Inc
*Disclaimer: Major Players sorted in no particular order
Philippines Telecom Towers Market News
- June 2024: Nokia partnered with Globe Telecom to roll out its Broadband Network Gateway (BNG) solution across pivotal regions in the Philippines. These regions encompass North Luzon, South Luzon, the National Capital Region, Visayas, and Mindanao. This initiative aims to modernize Globe Telecom's infrastructure, ensuring an enhanced broadband experience for its clientele. Upon implementation, Nokia's BNG solution will bolster Globe Telecom's residential wireline services, catering to both postpaid and prepaid broadband users. Central to Nokia's offering is the 7750 Service Router (SR), designated as the BNG platform. This platform is engineered to manage subscriber services, oversee bandwidth allocation, and enforce per-subscriber policy controls.
- March 2024: PRIVATE equity firm KKR & Co announced that it was set to invest USD 400 million in expanding telecom tower operations in the Philippines. According to the US Department of Commerce, this announcement was part of a broader USD 1 billion investment unveiled during a significant trade mission. Furthermore, KKR aims to develop and acquire approximately 2,000 telecom towers, bolstering digital connectivity throughout the Philippines. This move was highlighted by the Commerce Department after a two-day trade and investment mission, which was spearheaded by US Commerce Secretary Gina Raimondo.
Philippines Telecom Towers Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Connecting/Improving Connectivity to Rural Areas
5.1.2 5G deployments are a major catalyst for growth in the cell-tower leasing environment
5.1.3 Improving and Catering to Increasing Data Needs
5.2 Market Restraints
5.2.1 Environmental Concerns about Power Supply Systems to Towers
5.2.2 Tower sharing between Telecom Companies
6. TECHNOLOGY SNAPSHOT
6.1 Technology Snapshot
7. MARKET SEGMENTATION
7.1 Ownership
7.1.1 Operator-owned
7.1.2 Private-owned
7.1.3 MNO Captive Sites
7.2 Installation
7.2.1 Rooftop
7.2.2 Ground-based
7.3 Fuel Type
7.3.1 Renewable
7.3.2 Non-renewable
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Philippine Long Distance Telephone Company (PLDT)
8.1.2 Globe Telecom Inc.
8.1.3 Digital Telecommunications Phils. Inc.
8.1.4 Converge Information and Communications Technology Solutions Inc.
8.1.5 Ericsson Telecommunications Inc.
8.1.6 Radius Telecoms Inc.
8.1.7 N-Wave Technologies Philippines Inc.
8.1.8 Transcend Towers Infrastructure Inc.
8.1.9 Phil-Tower Consortium Inc.
8.1.10 Sky Cable Corporation
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. FUTURE MARKET OUTLOOK
Philippines Telecom Towers Industry Segmentation
Telecommunication towers come in various structures, such as monopoles, tripoles, lattice towers, guyed towers, self-supporting towers, poles, masts, and similar configurations. These towers house one or more telecommunication antennas, facilitating radio communication. They can be situated on the ground or atop a building, often including storage for equipment and electronic components. While these towers do not need constant staffing, they do require periodic maintenance. Driven by the rollout of 5G infrastructure, the expansion of telecom towers is poised to persist during the forecast period.
The Philippine telecom towers market is segmented by ownership (operator-owned, private-owned, and MNO captive), installation (rooftop and ground-based), and fuel type (renewable and non-renewable). The market sizes and forecasts are provided in terms of value in USD in for all the above segments.
| Ownership | |
| Operator-owned | |
| Private-owned | |
| MNO Captive Sites |
| Installation | |
| Rooftop | |
| Ground-based |
| Fuel Type | |
| Renewable | |
| Non-renewable |
Philippines Telecom Towers Market Research Faqs
How big is the Philippines Telecom Towers Market?
The Philippines Telecom Towers Market size is expected to reach 26.26 thousand units in 2024 and grow at a CAGR of 1.97% to reach 28.95 thousand units by 2029.
What is the current Philippines Telecom Towers Market size?
In 2024, the Philippines Telecom Towers Market size is expected to reach 26.26 thousand units.
Who are the key players in Philippines Telecom Towers Market?
Philippine Long Distance Telephone Company (PLDT, Globe Telecom, Inc., Digital Telecommunications Phils., Inc., Converge Information and Communications Technology Solutions, Inc. and Ericsson Telecommunications, Inc are the major companies operating in the Philippines Telecom Towers Market.
What years does this Philippines Telecom Towers Market cover, and what was the market size in 2023?
In 2023, the Philippines Telecom Towers Market size was estimated at 25.74 thousand units. The report covers the Philippines Telecom Towers Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Philippines Telecom Towers Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Philippines Telecom Towers Industry Report
Statistics for the 2024 Philippines Telecom Towers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Philippines Telecom Towers analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
