Philippines Telecom Transformation: Breaking PLDT's Monopoly

Sep 17, 2026

75 min

Sep 17, 2026 22:30

Philippines: From 15-year phone waits to a telecom 'revolution': How the back of PLDT’s monopoly was broken

## The Long Wait for Phones

In the early 1990s, obtaining a telephone line in the Philippines could take up to 15 years, especially in Metro Manila. This was largely due to the monopoly held by the Philippine Long Distance Telephone Company (PLDT), which controlled about 94% of the country's telephone lines.

## Breaking the Monopoly

The turning point came with Executive Order No. 59, issued by President Fidel V. Ramos in 1993. This order mandated the compulsory interconnection of all authorized public telecom carriers, effectively breaking PLDT's stranglehold on the market.

## The Role of Antonio Carpio

Antonio Carpio, then a legal adviser to President Ramos, played a crucial role in drafting the executive order. His personal struggles with obtaining a phone line highlighted the need for reform.

## New Players Enter the Market

The reforms opened the door for new telecom companies like Globe Telecom and Smart Communications. These companies launched mobile services, transforming the telecommunications landscape in the Philippines.

## Economic Impact

The deregulation led to a significant expansion of the telecommunications industry, with revenues growing from ₱20 billion in 1993 to ₱230 billion in 2008. This growth also supported the rise of the business process outsourcing (BPO) industry in the country.

## Lessons Learned

The case of PLDT demonstrates that competition can be fostered not just by allowing new entrants, but by ensuring they can connect to existing networks. This approach helped transform the Philippines into a major player in mobile and digital communications in Asia.

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