New GSMA research underscores significant growth in mobile subscriptions and 5G adoption in the Philippines by 2030
26th November 2024, Manila: The Philippines is one of the most advanced digital nations in Asia Pacific and stands to benefit from the economic and societal opportunities mobile technologies can bring, according to research outlined today at the GSMA’s Digital Nation Summit Manila. However, to realise its potential of becoming a full-fledged digital nation, the Philippines must continue expanding its mobile infrastructure across the archipelago and build further consumer trust in digital services.
The GSMA’s “Digital Nations in Asia Pacific” report highlights how the Philippines’ ranks sixth out of 18 countries in the region and leads the way in areas such as data governance. The country is making strides in expanding its digital infrastructure, including the rollout of 5G networks by major operators and the expansion of satellite networks to improve internet connectivity and speeds nationwide. This digital transformation is further supported by the government’s efforts to foster a startup ecosystem, with innovation and entrepreneurship being key priorities.
Further research from the GSMA’s recent “Mobile Economy Asia Pacific 2024″ report, shows that the number of mobile subscribers in the Philippines is forecast to grow to 78% of the population by 2030 (from 73% in 2023). Smartphone adoption is set to rise to 92% of the population by 2030 (from 86% in 2023), as mobile operators expand the reach of mobile internet services in the Philippines and smart devices become more accessible. More than 51% of mobile connections are expected to be over 5G technology by 2030, a huge jump from just three percent of connections in 2023.
However, despite this, the Philippines is in a three-way tie for the world’s ninth largest mobile usage gap, meaning 55 million people, or more than 45% of the population, are currently not using the mobile internet. Handset affordability and mobile ownership is a major challenge, particularly for rural areas and vulnerable groups. Other contributing factors include unequal access to digital literacy and education, and limited awareness of the internet’s benefits or the skills to use it. Additionally, growing concerns around privacy, scams, fraud and online security could undermine digital trust and discourage adoption.
To ensure the country continues to benefit from economic and societal change digital transformation can bring, all parts of the government, mobile and technology industries must work together to safeguard digital trust. Research by the GSMA shows that 29% of consumers surveyed in the Philippines have been a victim of financial crime, such as identity theft and security breaches. Likewise, the Digital Nations report highlights how the Philippines saw the highest growth in deepfake cases (4,500%). Deepfakes involve the use of such hyper-realistic fake videos, images and audio to trick viewers and have the potential to erode trust in digital content. This has significant implications for sectors, including the media, the arts, academia, security and justice.
Speaking at the Digital Nation Summit Manila, Julian Gorman, Head of Asia Pacific at the GSMA said that government, industry players and other stakeholders must focus on five key measures to preserve digital trust. These are:
- a policy environment to drive investments
- a whole-of-government approach to streamlining digital transformation efforts
- a private sector commitment to tackling online risks
- international cooperation to tackle cross-border threats and
- the development of a response mechanism to reassure and support victims of online
To support the acceleration of the country’s progress towards becoming a digital nation, the GSMA is hosting the Digital Nation Summit Manila 2024 this week. The one-day event will bring together government officials, industry leaders, and technology experts to discuss strategies for fostering collaboration and driving the country’s digital transition. The summit will align with Fintech Week in the Philippines, with the GSMA also hosting its own APAC Fintech Forum. This event will focus on the role of financial technology in promoting inclusive digital growth and innovation within the country.
“The Philippines stands at a pivotal moment in its digital journey,” said Julian Gorman, Head of APAC at GSMA. “The significant contributions of the mobile industry to the economy highlight the potential for further growth and innovation. Our goal is to support the Philippines in harnessing the power of mobile and digital technologies to achieve inclusive growth and innovation. The Digital Nation Summit and APAC Fintech Forum aim to foster collaboration and drive actionable strategies that will solidify the Philippines’ position as a leading digital nation in the region.”
During the Digital Nation Summit leaders from the Philippines’ Department of Information and Communications Technology, Globe Telecom, Smart Communications, Meta, the Asian Development Bank and RCBC will discuss how leveraging technology and forming partnerships is essential to protect consumers and maintain trust in digital platforms.
“As the Philippines’ digital transformation accelerates, we see the growing importance of collaboration among stakeholders to address emerging challenges, from online risks to borderless threats. Globe is one with the industry in finding effective and sustainable solutions that industry players across the world face. This is critical in our mission of uplifting lives through technology, ensuring that no Filipino is left behind in the journey towards a digitally empowered future,” said Ernest Cu, Globe President and CEO.
One area of discussion during the summit will be the need for cross industry collaboration to improve online security and safeguarding digital trust. One such collaboration is the GSMA Open Gateway initiative, which leverages the power of mobile networks globally by opening up access to network capabilities through common application programming interfaces (APIs). Globe Telecom and Smart Communications are supporting the initiative in the Philippines, working with financial institutions and online retailers to help mitigate the incidence of illegal account takeovers and unauthorised transactions that result from phishing and malware app scams.
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