PANGILINAN-led PLDT Inc. has earmarked P11 billion over the course of two years to replace its existing copper lines into fiber-optic cables.
PLDT First Vice President Marco Alejandro T. Borlongan said the amount will be spent to modernize the company’s existing network, specifically targeting areas where fixed-line Internet is still using old copper lines.
“We have about 1.3 million broadband subscribers who are still on our copper DSL [Digital Subscriber Line]. The program is to fiberize those subscribers in the next two years,” he said in an interview on Wednesday. “With our network-modernization program, we are bringing the power of fiber to every Filipino home so that our subscribers can better enjoy their digital lifestyle through access to world-class Internet.”
Changing copper lines to fiber-optic cables is necessary, he said, as the latter allows PLDT to deliver 10 times the maximum speeds that it can deliver using the former.
It is also less susceptible to theft.
The company is intensifying its home broadband efforts in the Philippines, as the market is still highly unsaturated.
There are 22.5 million homes in the Philippines and the group, despite enjoying the lion’s share in the whole pie, only has about 1.7 million homes connected via its different plans.
“The market is huge. The potential of the business is still big,” Borlongan said. “We target to grow to 1.9 million home subscribers by year-end, which is about 14 percent from last year.”
The company has been rolling out fiber-to-the-home (FTTH) network nationwide since the start of 2017, partnering with content platforms to further entice customers to subscribe to its plans.
PLDT is expected to expand its FTTH coverage to about 4 million homes pass by the end of 2017. Four years ago, PLDT said it is rolling out in 2013 over 5,000 kilometers of new fiber-optic cable facilities at the cost of about P2.5 billion.
That year the company said its FTTH project will make PLDT’s internet services available to about 2 million homes in different parts of the country.
Borlongan noted the business segment will likely end the year with double-digit growth across verticals.
“Definitely, home will be reporting double digit on revenue, broadband revenues, subscriber base and subscriptions,” he said.
Along with the enterprise business, home is expected to drive growth into the telco group, tempering the eroding revenues from its legacy businesses.