By Lourdes O. Pilar, Researcher
SHARES OF PLDT, Inc. declined last week after the government disclosed that more foreign telecommunication companies are seeking to enter the Philippine market, raising concerns about stronger competition.
“The stock may have come under pressure following disclosure from the Department of Information and Communications Technology (DICT) that a Japan-based telecom company is looking to enter the Philippines, raising expectations of heightened competition,” Unicapital Securities, Inc. Equity Research Analyst Peter Louise D.C. Garnace said in an e-mailed reply to questions.
The Pangilinan-led telecommunication company was the 11th most actively traded stock last week, with 633,230 shares valued at P728.74 million changing hands from June 1 to 5.
PLDT shares closed at P1,142 each on Friday, down 0.6% from a week earlier. The stock also lagged behind the broader service index, which rose 9.5%, and the benchmark Philippine Stock Exchange index (PSEi), which climbed 2.9%.
Year to date, PLDT shares have fallen 9.4%, underperforming both the service sector’s 29.9% gain and the PSEi’s 1.9% decline.
Last week, the DICT said a Japanese telecommunication company is exploring entry into the Philippine market. The agency added that applications from two US-based satellite providers are in advanced stages.
The agency said the Japanese company is a full telecommunication operator offering both satellite and terrestrial services, although it declined to identify the firm because discussions remain at an early stage.
The entry of more foreign telecommunication companies follows the enactment of the Konektadong Pinoy Act, which opened the data transmission sector to more players by removing the congressional franchise requirement for qualified operators.
The DICT has said seven other foreign companies have expressed interest in entering the Philippine market after the implementing rules of the law were released.
“The competitive landscape has intensified with the continued expansion of the country’s third telecommunication operator, which has been steadily gaining subscribers and investing aggressively in its 5G infrastructure,” Jeff Radley C. See, head trader at Mercantile Securities Corp., said in a Viber message.
He said the growing competition could force both PLDT and Globe Telecom, Inc. to continue increasing network investments to protect market share, potentially affecting margins and returns.
PLDT is also facing broader economic risks, analysts said.
Mr. Garnace said tensions in the Middle East and the risk of elevated inflation could slow consumer spending, including demand for connectivity services.
Philippine inflation eased to 6.8% in May from 7.2% in April, according to the Philippine Statistics Authority, although it remained significantly higher than 1.3% a year earlier.
Despite the pressure on its shares, analysts said PLDT continues to benefit from its large subscriber base and network coverage.
The company is also banking on wider 5G adoption to support revenue growth at wireless unit Smart Communications, Inc.
“As of the first quarter of 2026, 5G adoption continues to gain momentum, with 5G device users rising 34% year on year to 12.2 million, accounting for 20% of Smart’s subscriber base,” Mr. Garnace said.
PLDT reported first-quarter consolidated revenue of P54.91 billion, up 2.8% from a year earlier, while attributable net income slipped 1.7% to P8.87 billion.
Mr. Garnace said PLDT’s shares might recover this week after trading at oversold levels. He placed immediate support at P1,120 and resistance at P1,180 per share.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.
