The country’s two largest telecom companies are likely to raise capital expenditures next year because of regulatory pressure and the looming competition from a new entrant, Fitch Ratings said in a report Monday.
“Strategic execution will be key amid the challenges posed by the pandemic and rising competition,” the credit rating agency said in a statement.
PLDT Inc. and Globe Telecom Inc. are accelerating their network rollout in mobile and fiber broadband in the coming quarters, ahead of Dito Telecommunity’s entry in March 2021.
“The country’s new common-tower policy is also likely to hasten tower builds and access to cell-sites, which were previously held up by the lengthy regulatory approval process for permits,” Fitch said.
“We forecast the incumbents’ capex will increase by 20 percent to 25 percent in 2021. The Philippines has among the highest capex/revenue ratios in Asia-Pacific, at around 40 percent,” it said.