The entry of third player Dito Telecommunity Corp. combined with the regulatory changes have resulted in more network investments and an overall improvement in fourth generation (4G) coverage and speed across all operators in the country, according to Ookla’s latest report.
Ookla’s analysis based on data from its Speedtest Intelligence showed the country’s Long-Term Evolution (LTE) performance improved from 11.15 megabits per second (Mbps) in the first quarter of 2021 when DITO commercially launched, to 15.53 Mbps in the first quarter of 2022 or almost one year of DITO’s operations.
Smart Communications Inc. came first in terms of median LTE download speed in the first quarter at 18.51 Mbps, followed by DITO with 15.77 Mbps and Globe, 12.59 Mbps.
However, DITO’s median 4G speeds have decreased over a space of a year which is quite common as a network gets more congested, said Ookla
Since DITO is a 4G-only operator, Ookla said it is not surprising that DITO also had the best 4G availability in the first quarter at 91.2 percent, ahead of Globe with 84.9 percent and Smart’s 83 percent that provide access to all network technologies — 2G, 3G, 4G and 5G.
Additionally, DITO, despite facing challenges raising funding, plans to invest P50 billion ($915 million) in 2022 in its network rollout to adhere to its license obligations that specify its population coverage and network speeds, Ookla said.
Other operators also continue to commit capital expenditures (capex) for network investment, Ookla added. Globe Telecom Inc. earmarked P89 billion for capex while PLDT allocated P85 billion for this year.
Newcomer DITO held a 1 percent market share as of the first quarter of the year. Ookla said this is lower than it would expect from a new market entrant.
In comparison, Globe had 54 percent market share by subscriber number which stood at 87.4 million, while Smart had 45 percent share with 70.3 million subscribers.
“As a result, the newcomer’s strategy wasn’t to start a price war with the incumbent operators. Rather, the goal is to win consumers’ mindshare by delivering faster speeds, differentiated customer experience and simpler products,” Ookla said.
In addition, 5G mobile networks are making significant advances in the Philippines, Ookla said.
Ookla data showed that Smart recorded a median download speed of 200.43 Mbps and 19.67 Mbps upload speed in the first quarter of 2022. These were way ahead of Globe which registered median download speed of 121.29 Mbps and upload speed of 9.93 Mbps.
Availability of 5G nationwide, Ookla said, nearly doubled in just one year, from 9.4 percent coverage in the first quarter of 2021 to 18.1 percent in the first quarter of 2022.
“Part of this is related to the easing of right-of-way (ROW) rules,” said Ookla.
New ROW rules, enforced by the Department of Public Works and HIghways in March 2021, lifted the ban on construction of critical infrastructure, particularly cell sites, along national roads.
In terms of coverage, Smart reached 25.5 percent 5G coverage in the first quarter of 2022, while Globe reached 15.3 percent coverage. Ookla attributed this to “spectrum deployment strategies” of each company.
Smart had 1.6 million connected 5G devices to its network in the first quarter, or more than triple its level — 376,000 — in the first quarter of 2021. Globe, by end of March 2022, had more than 2 million devices connected to 5G.
Ookla said plans of both telcos to further invest in 5G bodes well for the spread of the technology which delivers faster connection to the internet.
