Despite an increase in service coverage, the Philippines continues to lag behind its regional counterparts in the adoption of 5G technology. According to Ericsson’s November 2024 Mobility Report, the slow uptake in the country can be attributed to limited data consumption and penetration. While 5G adoption in Southeast Asia and Oceania is projected to reach 680 million subscriptions by 2030, countries like Australia, Malaysia, Singapore, and Thailand have seen rapid growth thanks to broader network coverage, heightened consumer awareness, the affordability of devices, and vigorous promotional campaigns by service providers.
Regional Contrasts
Mature markets like Australia and Singapore have effectively leveraged advanced 5G capabilities to introduce customized connectivity services for businesses. However, Southeast Asia and Oceania face ongoing challenges with spectrum re-farming due to the continued reliance on 2G and 3G networks for voice calls. This reliance results in subscribers falling back from 5G to 4G, which impedes data usage growth and delays spectrum optimization, thereby influencing 5G deployment strategies.
Challenges in the Philippines
In the Philippines, slower 5G adoption is primarily due to the high cost of 5G-compatible devices, insufficient infrastructure, and limited digital literacy, according to Ronald Gustilo, a national campaigner at Digital Pinoys. Gustilo suggests that alignment in infrastructure development, fostering consumer adoption, and implementing supportive regulatory policies could enable the Philippines to catch up with neighboring countries in 5G adoption. He advocates for the expedited rollout of the National Fiber Backbone Project to deliver faster and more reliable internet across the country, which would significantly enhance 5G adoption.
Collaborative Solutions and Benefits
Telecommunications companies are encouraged to collaborate with device manufacturers to make 5G devices more affordable through flexible financing programs. Gustilo highlights the numerous benefits of 5G technology, including faster internet speeds that can boost productivity, improve access to online education, and propel e-commerce growth. Additionally, 5G can drive innovation in telemedicine, smart cities, and the Internet of Things, significantly enhancing the user experience for businesses and consumers alike.
Future Projections
Ericsson projects that by 2030, 5G will handle 80% of global mobile data traffic, up from an expected 34% by the end of 2024. However, the pace of this adoption can vary significantly by region due to factors like global inflation and interest rates, which affect consumer willingness to pay for mobile services. Despite these challenges, large regions such as India, Latin America, Southeast Asia, and Africa are anticipated to substantially transition their subscriber bases to newer mobile technologies in the coming years. By 2030, countries outside mainland China are expected to increase their 5G coverage from 45% in 2024 to about 85%.
Path Forward
Despite expanded service coverage, the Philippines still lags behind its regional neighbors in adopting 5G technology. According to Ericsson’s November 2024 Mobility Report, the country’s slow adoption rate can be attributed to limited data consumption and low penetration levels. While projections for 5G subscriptions in Southeast Asia and Oceania are expected to hit 680 million by 2030, other nations like Australia, Malaysia, Singapore, and Thailand are leading the way with rapid growth. This progress is buoyed by wider network coverage, increased consumer awareness, the affordability of 5G devices, and aggressive promotional campaigns by service providers. The Philippines needs to address these challenges to catch up with its neighbors in embracing the advantages offered by 5G technology, including improved connectivity, faster speeds, and the support of emerging technologies. Enhanced urban infrastructure and investment in technological advocacy could also play crucial roles in boosting 5G adoption in the region.
