In a capital-intensive industry, access to bigger budgets for faster 5G network expansions and upgrades will be vital for the mobile data market. Innovations in 5G technology will also be a must in the race to provide wider access and higher speeds. If DITO had the adequate budget, it could be the underdog to watch out for but as it stands, DITO has more important problems to address. <\/p>\n\n\n\n
The two mobile giants Globe Teleconm (GLO) and PLDT (TEL) are likely to be more capable of keeping up with expansions and upgrades in its 5G networks, and as such we reiterate our BUY rating on GLO and TEL with Target Prices of P2,689.32 and P1,770.57, respectively.<\/p>\n\n\n\n
Mobile market penetration<\/strong><\/p>\n\n\n\n In their Mobile Economy Asia Report, non-profit think tank Global System for Mobile Communications Association (GSMA) found that the subscriber penetration in the Philippines has reached 73% in 2023 and will likely grow to 78% by 2030. The slow but sure growth could be attributed to expansions in hard-to-reach regions such as mountainous and extremely isolated areas. <\/p>\n\n\n\n The country also achieved 86% smartphone adoption, which is expected to increase to 92% by 2030, giving the telcos substantial room to expand their mobile data business. The full subscriber penetration will inevitably be achieved at some point in the future with the increasing availability of affordable 5G-capable smartphones. Even if the mobile market is fully penetrated, innovations in network technology keeps the competition tight & intense.<\/p>\n\n\n\n 5G, the youngest sibling<\/strong><\/p>\n\n\n\n In 2023, the mobile network technology mix is made up of 4G which takes up 80%, followed by 3G (11%), 5G (6%), and 2G (3%). 5G will likely outpace its older siblings, as the newest and best technology available but 4G will remain dominant in the foreseeable future. <\/p>\n\n\n\n The report forecasted that 5G adoption would increase to 46% in line with the telcos\u2019 5G network expansions and upgrades. Such as the case with GLO, which has achieved 98.45% of 5G outdoor coverage in NCR while key cities in Vis-in have a coverage rate of 94.19%.<\/p>\n\n\n\n