As inflation bites, PLDT mulls cuts in internet rates

MANILA, Philippines — Telco giant PLDT Inc. is studying the possibility of reducing the prices of connectivity services this year, as inflation dries up the wallets of consumers, weakening the demand for broadband packages.

PLDT president and CEO Alfredo Panlilio said the telco provider is developing new products and services that cater to the demands of the broadband market at affordable prices.

PLDT projects fixed line revenue to sustain its upward trajectory in 2023, but may be tempered due to the impact of inflation.

“There is still demand, but maybe it is not as huge as last year. Because of the challenged wallets of consumers, affordability becomes an issue. (The) challenge for the business is there are still a lot of people who need connectivity. Hopefully, we can come up with products that are aligned to (the needs of our customers),” Panlilio said.

PLDT is looking at offering sachet-sized bundles of data connectivity to serve the low-income segments of the economy.

It is also expanding its menu of prepaid and wireless services to give customers additional options.

“We will see some prepaid and some fixed wireless inclusion, but we are trying to be sensitive to what the market can afford,” Panlilio said.

PLDT grew its fixed line revenue by 10 percent to P128.71 billion last year, mitigating the impact of the two percent drop in wireless earnings to P104.27 billion.

The Cabinet-level Development Budget Coordination Committee (DBCC) sees inflation landing in the range of five percent to seven percent on price hikes in food, fuel and transport.

This, in turn, is expected to moderate the appetite for non-essential goods and services, including broadband subscription.

Internet providers have responded to this by introducing retail packets of data services to cater to the low-income segment.

PLDT is trying to maintain its position as the internet service provider with the fastest network in the Philippines.

Ookla recognized the Pangilinan-led telco for the fifth consecutive year after recording the highest speed score of 86.52 in 2022.

According to Ookla, PLDT registered the fastest speeds in multiple areas across the archipelago, besting competitors in localities like Baguio, Cagayan de Oro and Pasig City.

PLDT maintains a subscriber base of 2.9 million for its broadband segment as of 2022 with 6.08 million fiber ports installed in 17,700 barangays nationwide.