Philippines' Telecom Transformation: Breaking PLDT's Monopoly

Sep 19, 2026

90 min

Sep 19, 2026 23:30

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

## The Telecom Landscape in the 1990s

In the early 1990s, obtaining a telephone line in the Philippines was a lengthy process, often taking up to 15 years in Metro Manila. The Philippine Long Distance Telephone Company (PLDT) held a near-monopoly, controlling about 94% of the country's telephone lines. This dominance created significant barriers for new telecom companies trying to enter the market, as they struggled to connect their networks to PLDT's.

## Executive Order No. 59

In 1993, President Fidel V. Ramos issued Executive Order No. 59, which mandated the compulsory interconnection of all authorized public telecommunications carriers. This order aimed to create a universally accessible and integrated nationwide network, allowing new entrants to compete effectively by ensuring their networks could connect with PLDT's.

## Impact of the Reforms

The introduction of EO 59 was pivotal in transforming the telecom industry. It allowed new players like Globe Telecom and Smart Communications to enter the market, leading to increased competition and improved services. The reforms not only broke PLDT's monopoly but also laid the groundwork for the growth of mobile telecommunications in the country.

## Economic and Technological Growth

The deregulation of the telecom industry had far-reaching economic impacts. It facilitated the expansion of the telecommunications market, which grew from ₱20 billion in 1993 to ₱230 billion in 2008. This growth supported the development of the business process outsourcing (BPO) industry, contributing significantly to the country's digital economy.

## Lessons Learned

The case of the Philippines illustrates that competition in essential services like telecommunications requires more than just opening the market to new players. It also necessitates regulatory measures to ensure that newcomers can connect to existing networks on fair terms. This approach helped transform the Philippines into a major player in Asia's mobile and digital communications landscape.

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