Philippines Telecom Revolution: Breaking PLDT's Monopoly

Sep 19, 2026

76 min

Sep 19, 2026 22:30

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

## Long Waits for Phone Lines

In the early 1990s, obtaining a telephone line in the Philippines was a lengthy process, often taking up to 15 years in Metro Manila. In rural areas, many residents had little hope of ever getting connected. 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.

## Executive Order No. 59

The turning point came with Executive Order No. 59, issued by President Fidel V. Ramos on February 24, 1993. This order mandated the compulsory interconnection of all public telecom carriers, effectively breaking PLDT's stranglehold and paving the way for a more competitive telecommunications market.

## Opening the Market

The order allowed new telecom companies to enter the market without needing to build an entirely separate network. This change enabled companies like Globe Telecom and Smart Communications to offer services, leading to a rapid transformation in how Filipinos communicated.

## Economic Impact

The reforms not only improved access to telecommunications but also contributed to the growth of the business process outsourcing (BPO) industry in the Philippines. Telecom revenues surged from ₱20 billion in 1993 to ₱230 billion in 2008, illustrating the significant economic impact of these changes.

## Lessons Learned

The Philippine telecom revolution demonstrates the importance of regulatory measures in fostering competition. By ensuring that new entrants could connect to existing networks, the government helped transform the country into a major player in Asia's mobile and digital communications markets.

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