New policies to strangle telco profits, says PLDT

March 5, 2026 | 12:00am

MANILA, Philippines — Telco giant PLDT Inc. has expressed concerns that new regulations would add to the burdens of the connectivity industry already struggling to grow as a result of a saturated market.

Based on its annual report, PLDT said it is cautious of new and proposed laws that could hurt its market leadership, especially after its profit dropped by three percent to P30.01 billion last year.

For one, PLDT is wary that House Bill 87, or the Roll-Over Internet Data Act, would trim its breakage revenue, or income from prepaid services that were never used.

The measure, approved on third and final reading by the House of Representatives in 2025, will require telcos to roll over unused data of subscribers into their next billing cycle. Simply put, if a consumer buys 10 GB of data for seven days, any leftover from that promo will be added to their next reload.

The bill imposes a penalty of P50,000 per subscriber that was denied the right to rollover. PLDT said the proposal, if enacted into law, would ignite a new round of price war among telcos.

“The mandated rollover of unused data could intensify price-based competition, pressure ARPU (average revenue per user) and require adjustment to network-capacity planning to accommodate more variable usage patterns,” PLDT said.

The measure it is now in the Senate’s hands to legislate a counterpart version.

PLDT is also monitoring how the Konektadong Pinoy Act will be enforced, but it anticipates the industry to become more competitive, as the law opened the doors for new entrants.

The Konektadong Pinoy Act removes the need for data transmission industry participants to secure a legislative franchise to operate in the Philippines. Further, the law mandates a periodic review of spectrum usage, so telcos underutilizing their allocation may be asked to transfer capacity.

PLDT also flagged the growing oversight exercised by regulators on digital payments. The telco owns a 39-percent stake in digital bank Maya, which turned profitable for the first time in 2025.

PLDT believes the connectivity market is already too difficult to grow in, as mobile penetration in the Philippines has reached 125 percent of the population as of 2025, signaling maturity.

Telcos are struggling to increase profit, with Globe Telecom Inc. reporting a four-percent decline in 2025, owing to the economy’s slower expansion and the saturation of the mobile market.