The most disruptive phase of competition triggered by new entrant DITO Telecommunity may have passed, with the Philippine telecom industry showing signs of stabilizing after years of price wars, according to PLDT, the country’s largest phone company by revenue.
DITO’s entry five years ago reshaped the market, slowing industry revenue growth and intensifying competition.
Industry compounded annual revenue growth, which stood at about 5% before DITO’s arrival, fell to 2–3% and flattened in 2024 and 2025 at the height of price competition.
DITO’s aggressive pricing effectively capped rates for mobile calls and data services, forcing incumbents to respond to protect market share. “Anybody who is a new entrant will try to grab market share from two dominant incumbents,” said Butch Jimenez, PLDT chief operating officer, said. “You have no choice but to engage in a price war, and we had to respond.”
Despite the disruption, PLDT said DITO’s entry did not derail its long-term plans. “Looking back at the past five years, I don’t think there was anything significant that we weren’t able to do because DITO came in,” Jimenez said, noting that capital expenditure controls, not competition, were the main constraint. The period also accelerated initiatives such as the rollout of 5G services.
Signs of stabilization
Jimenez said the most intense phase of competition may have passed, citing a recent softening in DITO’s pricing over the past three to four months. “We have seen a softening in the price war. Their prices have started to be more rational in specific areas,” he said.
DITO’s financial pressures, including continued losses, high debt levels, and an incomplete nationwide rollout, may further limit aggressive pricing, “It will be quite difficult for DITO Telecom to get as aggressive shareholder support in the next three years as in the past,” Jimenez said, said, suggesting investors may begin demanding returns after years of funding expansion.
DITO CME, the majority partner of China Telecom Communications in DITO Telecom, has accumulated P51.67 billion in losses from 2021 through the fist nine months of 2025. It reported P304.65 billion in liabilities and a P95.31 billion stockholders’ equity deficit as of end-September.
Still, PLDT emphasized that DITO remains a formidable competitor, even as the industry adopts a more disciplined approach.
Shift in industry dynamics
Beyond price competition, the market itself is evolving, according to Lloyd Manaloto, officer-in-charge of PLDT’s mobile arm Smart Communications. Consumers are shifting away from traditional voice calls toward internet and broadband services, making data a necessity rather than a luxury.
“There are now many more options to communicate. Data is no longer just nice to have — it has become a need,” Manaloto said, noting that DITO’s biggest impact was placing a ceiling on data pricing.
With telecom players increasingly pursuing infrastructure-sharing and cost-efficiency initiatives, price competition is expected to ease.
Jimenez described the trend as “heightened collaboration, not collusion,” aimed at improving financial sustainability.
“There’s more sanity in how we price and put subscription packages together. Unlike before, when PLDT and Globe were cutting each other’s throats, there is now more openness to collaborate,” he said.
A more rational market
With pricing becoming more measured and collaboration increasing, Jimenez said the telecom industry is moving toward a more rational and sustainable competitive environment.
While competition remains, he expressed confidence that the worst of the disruption brought by DITO has likely passed, marking a new phase of stability.
“We are saner now in how we run the business,” Jimenez said.
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