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5G rollout expected to boost PH telco revenues by US$650 M

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By EMMIE V. ABADILLA

The roll-out of Fifth Generation (5G) services could boost annual revenues of Philippines telecom operators by US$650 million starting 2025, according to a new Cisco-commissioned study.

5G is 50 times faster, 10 times more responsive with much lower power connectivity than 4G, according to the study, which the global technology firm commissioned from management consulting firm Kearney.

The combination of these three distinctive features — high throughput, ultra-low latency, and enhanced connectivity, will enable local telcos to provide super-fast Internet services for streaming high-definition videos, cloud gaming as well as interactive augmented and virtual reality (AR/VR)-powered content.

Furthermore, it will fast-track advanced use cases of 5G, including smart cities, Industry 4.0, large-scale Internet of Things (IoT) deployments, and more, allowing telcos to earn more from consumers as well as enterprise clients.

The study, “5G in ASEAN: Reigniting Growth in Enterprise and Consumer Markets,” states that high-value customers and high-value devices will adopt 5G, with subscriptions increasing as devices become more affordable.

Major countries in the region will have 25 to 40 percent 5G penetration by 2025, with Philippines expected to have nearly 15 percent penetration. The total number of 5G subscriptions in ASEAN is forecast to exceed 200 million in 2025.

“The expected rollout of 5G services comes at a perfect time for telecom operators,” noted Cisco President ASEAN Naveen Menon. “The use of cellular data is growing rapidly as users consume increasing amount of services and content on their personal devices. At the same time, enterprises are looking to leverage the Fourth Industrial Revolution (4IR), underpinned by Artificial Intelligence, IoT, 3D Printing, Advanced Robotics and Wearables, to boost growth.”

“The successful adoption of these technologies is largely dependent on the underlying connectivity,” he underscored. “This provides a huge opportunity for telecom operators to increase their presence in the enterprise market and sustain their long-term growth.”

“Digital transformation has been a big theme in the Philippines. Businesses across the country, are looking to leverage advancements in 4IR technologies to enter a new phase of expansion,” acknowledged Cisco Managing Director for Philippines Karrie Ilagan.

Hence, “The rollout of 5G services will play a key role in accelerating the adoption and bring substantial benefits to the enterprises. At the same time, consumers are also eagerly waiting for 5G rollout for enhanced experience with content consumption on their personal devices.”

“The Philippines is already a global leader in social media usage and Filipino consumers are spending billions of dollars on online shopping,” she pointed out. “The roll-out of 5G services will not only give them better experience but also increase the reach of digital connectivity across the country.
Together, these trends will play a key role in boosting Philippines’ economic growth in the coming years.”

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