PLDT Inc. (PHI): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear map of the forces shaping PLDT Inc. (PHI), and honestly, the PESTLE framework is the best tool for cutting through the noise. We need to focus on what drives their valuation and risk profile right now, especially with 2025 data points: PLDT's core business is strong, but future growth hinges on their ability to manage regulatory shifts and massive capital expenditure (Capex); if they hit their projected 2025 revenue of around 225 billion PHP, that's a solid, single-digit growth story, but the 80 billion PHP Capex is the real variable that determines their competitive edge against rivals like DITO Telecommunity.

The regulatory landscape is the single biggest near-term risk for PLDT Inc. (PHI). The National Telecommunications Commission (NTC) oversight remains high, especially concerning spectrum allocation and license renewals, which are existential for a telco. The continued market pressure from the third major player, DITO Telecommunity, is defintely government-backed competition, forcing PLDT to accelerate its own network expansion just to defend market share. You need to watch the political conversation around potential changes in foreign ownership limits on public utilities; a shift here could invite significant new capital, or new rivals, into the Philippine market.

The government's push for digital transformation is a tailwind, but it comes with the expectation of industry cooperation and lower prices. This is a classic double-edged sword: more demand, but less pricing power. The NTC holds the keys to their spectrum future. Your action here is simple: factor in a 5% regulatory risk discount on future cash flows until the DITO situation stabilizes.

The economic outlook in the Philippines is a clear positive for PLDT Inc. (PHI). Philippine GDP growth is projected near 6.5% for the 2025 fiscal year, which translates directly into stronger consumer spending on data and connectivity services. This strong demand is the engine, but the fuel is expensive. PLDT has a massive capital expenditure (Capex) budgeted at approximately 80 billion PHP for 2025 network expansion, mostly for 5G and Fiber-to-the-Home (FTTH). Here's the quick math: that 80 billion PHP is nearly 35% of their projected 225 billion PHP revenue, a huge commitment.

Also, inflation and energy costs are increasing operational expenses (OpEx), which will pressure margins despite the revenue growth. Growth is great, but Capex eats the margin. You need to track their OpEx growth against the national inflation rate; if OpEx outpaces inflation by more than two percentage points, their cost-control measures are failing.

Sociological factors present a massive, stable opportunity for PLDT Inc. (PHI). The high mobile penetration rate, coupled with a young, defintely tech-savvy population, accelerates the adoption of high-margin digital services and faster 5G technology. The Philippines is a mobile-first, data-hungry nation. The lasting shift to work-from-home and e-learning models has permanently boosted fixed broadband demand, making home fiber a utility, not a luxury. This is why their FTTH expansion is so critical.

Consumers are increasingly preferring bundled services-mobile, home fiber, and content-which helps reduce churn (customer turnover) and increases the Average Revenue Per User (ARPU). What this estimate hides is that if onboarding takes 14+ days for a new fiber line, churn risk rises significantly. Focus on their bundled service ARPU growth; if it's rising faster than their subscriber count, they are successfully monetizing the demographic trend.

PLDT Inc. (PHI) is in a technology arms race. Their aggressive rollout of 5G network coverage across major islands and the continued Fiber-to-the-Home (FTTH) infrastructure expansion are not growth strategies; they are defense strategies to build a competitive moat. Fiber and 5G are the only game in town. Their investment in new international submarine cable systems is also crucial, as it secures the capacity needed to handle the massive data traffic growth, insulating them from bottlenecks and high transit costs.

Still, a new threat is emerging: competition from low-earth orbit (LEO) satellite internet, like Starlink. While LEO primarily targets remote areas, it could eventually pressure the high-end fixed broadband market. Your action is to assess their 5G coverage map against DITO Telecommunity's; a significant gap in urban centers signals a major competitive vulnerability.

Legal compliance is becoming more complex and costly for PLDT Inc. (PHI). Strict adherence to the Philippine Data Privacy Act (DPA) of 2012 is non-negotiable, requiring significant investment in data protection systems and personnel. Data privacy is not optional, it's a cost center. Ongoing legal scrutiny over spectrum allocation and license renewals adds a layer of uncertainty to their long-term operational planning, tying up executive time and legal resources.

Anti-trust regulations monitor market dominance in key segments, which limits their ability to make large, transformative acquisitions or engage in aggressive pricing wars. Plus, new cybersecurity laws require enhanced network protection measures, adding to the 80 billion PHP Capex burden. You need to review any publicly available DPA compliance audit reports; a major breach or fine would immediately impact investor confidence.

For a company with vast physical infrastructure like PLDT Inc. (PHI), environmental factors translate directly into operational risk and cost. The focus on reducing the carbon footprint from power-intensive network operations is a necessity, not just a marketing effort. Climate change risk is a physical and financial reality, with severe typhoons and flooding posing a constant threat to physical infrastructure. A typhoon can wipe out a quarter's Capex. This requires more resilient, and more expensive, construction.

E-waste management protocols for the disposal of older copper and network gear are also increasing compliance costs. The increased adoption of renewable energy sources for cell site power is a clear opportunity to mitigate rising energy costs and improve their Environmental, Social, and Governance (ESG) score. Track their percentage of renewable energy use; a 15% year-over-year increase would signal effective cost and risk management.

PLDT Inc. (PHI) - PESTLE Analysis: Political factors

The political landscape for PLDT Inc. in 2025 is defined by a dual dynamic: aggressive government-led digital transformation, which creates opportunities, and persistent, high-touch regulatory oversight, which manages the resulting market competition. This environment requires PLDT to be defintely more agile in compliance and collaboration.

National Telecommunications Commission (NTC) regulatory oversight remains high

The National Telecommunications Commission (NTC) maintains a high degree of regulatory scrutiny over PLDT, often acting as the primary enforcer for national policy. This oversight extends beyond traditional service quality to include digital security and consumer protection. For example, in August 2025, the NTC issued a direct order, which PLDT complied with, to block access to 10 unregistered cryptocurrency exchanges flagged by the Securities and Exchange Commission (SEC). This shows the NTC's role in policing the broader digital ecosystem, not just telco infrastructure.

Also, in September 2025, the NTC signed a Memorandum of Agreement with the Philippine Competition Commission (PCC) to strengthen competition in the data transmission industry under the Konektadong Pinoy Act. This collaboration signals a coordinated effort to ensure an open-access policy, which will keep pressure on PLDT to share infrastructure and maintain competitive pricing. The NTC's consumer-facing role is still active, evidenced by public requests for reports on poor connectivity service from PLDT as late as November 2025.

Government push for digital transformation requires industry cooperation

The current administration's focus on national digitalization is a major political driver, requiring deep cooperation from PLDT. The government has committed substantial resources, setting aside over P72 billion for broadband, cloud, and other transformation projects. PLDT is actively working with the Anti-Red Tape Authority (ARTA) to streamline regulatory bottlenecks, which helps fast-track the rollout of its extensive network, especially in underserved areas.

The company is also a key participant in initiatives like the Private Sector Advisory Council (PSAC), championing reforms such as the institutionalization of a zero lease rate policy for telco infrastructure in government facilities. This partnership is a double-edged sword: it speeds up network deployment but also aligns PLDT's strategy closely with government mandates. The launch of PLDT Enterprise's anti-fraud API suite, SmartSafe, in late 2025, which the Department of Information and Communications Technology (DICT) has encouraged other telcos to adopt, is a concrete example of this public-private security collaboration.

Continued market pressure from the third major player, DITO Telecommunity

The political decision to introduce DITO Telecommunity as the third major player continues to create intense market pressure, directly impacting PLDT's mobile business. Analysts in late 2025 noted that PLDT's mobile segment is being negatively affected by declining Average Revenue Per Users (ARPUs) due to 'heightened competition brought on by DITO.'

DITO has set an aggressive revenue target of at least P20 billion for the 2025 fiscal year and publicly aims to achieve a 30% market share, transforming the duopoly into a three-horse race. Here's the quick math on the current competitive split based on late 2024 subscriber data reported by PLDT in March 2025:

DITO's aggressive network build-out, having achieved 86.3% nationwide population coverage in its final technical audit, means the competitive threat is fully national. PLDT's response has been strategic, cutting its 2025 capital expenditures (capex) to P63 billion (down from an initial P73 billion) to prioritize cost efficiency over aggressive, large-scale expansion now that its 5G/4G coverage is near-full population coverage.

Potential for changes in foreign ownership limits on public utilities

The political risk here has shifted from a potential threat to a new, liberalized reality. The passage of Republic Act No. 11659, or the Public Service Act (PSA) Amendatory Law, effective April 1, 2023, fundamentally changed the game.

The key takeaway is that telecommunications was removed from the constitutional definition of a 'public utility.'

• Telecommunications is now classified as a 'public service.'
• The foreign ownership limit for telecommunications was lifted from the previous 40% cap.
• The sector is now open to 100% foreign ownership.

This political action drastically increases the risk of new foreign-backed entrants, while also creating an opportunity for PLDT to attract a wider pool of global capital and strategic investors for its own expansion or asset sales. What this estimate hides is the national security clause: the President retains the power to prohibit or suspend any proposed foreign investment in a public service classified as 'critical infrastructure' (which includes telecommunications) if it poses a risk to national security.

PLDT Inc. (PHI) - PESTLE Analysis: Economic factors

Philippine GDP Growth and Economic Momentum

You need to understand the macro-economic tide PLDT Inc. is swimming in. The Philippine economy is showing resilience, but the growth outlook for 2025 is a bit more nuanced than the government's top-end target. The Development Budget Coordination Committee (DBCC) is targeting a GDP growth range of 5.5% to 6.5% for the fiscal year 2025, which is a strong signal for business confidence.

However, as a realist, you should note that most major financial bodies are projecting a more moderate pace. For instance, the ASEAN+3 Macroeconomic Research Office (AMRO) projects a 2025 GDP growth of 5.2%, while the IMF estimates 5.5%. This still means a growing market for PLDT, but perhaps not the full-throttle expansion the government is hoping for. The country is also expected to cross the threshold into upper middle-income country (UMIC) status, a defintely positive long-term indicator for consumer wealth.

Capital Expenditure (Capex) for Network Expansion

The company's approach to capital expenditure (Capex) is a clear indicator of its financial discipline. While the initial expectation might have been for a Capex near the ₱80 billion mark, PLDT Inc. has actually lowered its full-year 2025 Capex guidance to ₱63 billion. This is a significant reduction from the ₱78.2 billion spent in 2024.

Here's the quick math: reducing Capex while maintaining network quality is key to driving positive free cash flow (FCF) by 2026. The lowered budget isn't a sign of retreat; it's due to more favorable pricing and successfully negotiated terms with vendors, plus a strategic shift toward more efficient rollout. This money is still focused on high-growth areas:

• Expanding fiber ports and home fiber reach.
• Continuing the 5G network rollout.
• Investing in artificial intelligence (AI) tools and AI-ready data centers.

It's a smart move to optimize spending without sacrificing the infrastructure build. That's how you get lean.

Inflation and Energy Costs Increase Operational Expenses (OpEx)

The flip side of the economic coin is the persistent pressure on operational expenses (OpEx). While overall inflation has eased, reported at 1.7% in October 2025, the cost of energy remains a structural challenge in the Philippines. The country has some of the highest electricity costs in Southeast Asia, with prices around USD0.18 per kWh. For a massive network operator like PLDT, energy is a huge input cost.

This cost pressure has a tangible impact. PLDT Inc. reported a slight decline in its bottom line during the first half of 2025, specifically citing cost pressures during the period. The company is forced to absorb some of these high utility costs to maintain competitive service pricing, which directly squeezes profit margins. The heavy reliance on digital infrastructure means that high energy costs will remain a drag on OpEx, even with efficiency gains from new technology.

Strong Consumer Spending on Data and Connectivity Services Continues

The most compelling tailwind for PLDT Inc. is the robust consumer demand for digital services. The Philippine digital economy is projected to expand by a substantial 15% to 20% in 2025, driven by e-commerce, fintech, and digital infrastructure. This isn't just a fleeting trend; it's a structural shift.

Data and connectivity services are now the core revenue engine. In 2024, these services accounted for 83% of PLDT's consolidated service revenues, and that momentum is carrying into 2025. The sheer scale of the market is immense: the Philippines has 86.98 million internet users and a mobile penetration rate near 99.3%, translating to 117.4 million mobile connections. This massive, digitally-engaged user base ensures sustained demand for better speeds and more capacity, which is exactly where PLDT's fiber and 5G investments pay off.

PLDT Inc. (PHI) - PESTLE Analysis: Social factors

The social landscape in the Philippines is a powerful tailwind for PLDT Inc., driven by a massive, young, and defintely tech-savvy population that is rapidly migrating to high-bandwidth digital services. This societal shift directly translates into robust demand for both mobile 5G and fixed fiber broadband, making the consumer segment a core growth engine for the company.

High mobile penetration drives demand for faster 5G services

The Philippines maintains one of the world's highest mobile penetration rates, creating a massive addressable market for next-generation services. As of early 2025, the country had approximately 142 million cellular mobile connections, which is equivalent to 122% of the total population. This high saturation means the focus is squarely on upgrading users to faster technology.

PLDT's mobile unit, Smart Communications, is capitalizing on this upgrade cycle. In the first half of 2025 (1H 2025), 5G traffic surged by a significant 84% year-on-year, showing how quickly users are adopting the new standard. The number of 5G devices on the network also jumped by 46% quarter-on-quarter, fueled by more affordable handsets and compelling data packages.

This social migration is reflected directly in the financials:

• PLDT's Individual Wireless segment generated revenues of ₱42.3 billion in 1H 2025.
• Mobile data traffic grew by 5% year-on-year in 1H 2025.
• The active mobile data user base stood at 41.6 million at the end of June 2025.

Young, defintely tech-savvy population accelerates digital service adoption

The Philippines has a median age of just 25, making it one of the world's youngest populations and highly receptive to new digital services. This demographic reality underpins the country's status as the 'social media capital' of the world, with 97.5 million internet users and a penetration rate of 83.8% as of January 2025.

This tech-savviness means a strong and consistent demand for data, which is now the primary revenue stream. Here's the quick math: Data and broadband services accounted for 85% of PLDT's Consolidated Service Revenues in 1H 2025, totaling ₱82.2 billion. This high percentage, coupled with the youth-driven adoption of digital finance platforms like Maya (which contributed to PLDT's core income), confirms that the social structure is fundamentally aligned with PLDT's digital strategy.

Increased work-from-home and e-learning models boost fixed broadband demand

The persistent shift toward hybrid work and e-learning models has permanently elevated the need for high-speed, reliable fixed broadband in Filipino households. This is no longer a temporary trend; it is a structural change in how people live and work.

PLDT Home's fiber business has been the direct beneficiary. Fiber-only revenues reached ₱29.5 billion in 1H 2025, reflecting a solid 7% year-on-year growth. This growth is driven by the demand for premium connectivity, with over 80% of new customers in Q2 2025 opting for higher-value broadband plans, typically priced at ₱1,299 and above. The total fiber subscriber count reached 3.53 million as of end-June 2025, with 169,000 net additions in the first half of the year.

Growing preference for bundled services (mobile, home fiber, content)

The market is increasingly looking for convenience and value, favoring single-provider solutions that combine connectivity and content. This preference for bundled services is a key strategy for PLDT Home to maintain its industry-leading position and high Average Revenue Per User (ARPU).

PLDT's bundled offerings, such as Fiber Unli All and Fiber Plus Netflix, are explicitly designed to capture this market preference. The company has enhanced these packages to include unlimited mobile calls to up to five Smart/TNT numbers, alongside unlimited fiber and content via Cignal. This strategy of combining the fixed and wireless assets of the PLDT Group is working. PLDT Home maintained the industry's highest ARPU at ₱1,485 in H1 2025, a clear indicator that customers are willing to pay a premium for integrated, value-rich services. The high adoption of bundled services helps reduce churn, which was at the industry's lowest rate of 1.93% for PLDT Home in H1 2025.

PLDT Inc. (PHI) - PESTLE Analysis: Technological factors

Aggressive rollout of 5G network coverage across major islands

You can defintely see that PLDT is treating 5G as the next battleground for mobile services, but the spending is getting smarter. The company's wireless unit, Smart Communications, has pushed its combined 4G and 5G networks to cover about 97% of the Philippine population, a massive footprint that anchors their mobile data business.

The 5G expansion is specifically part of the 2025 capital expenditure (CapEx) plan, which is set at a range of $\text{P68 billion}$ to $\text{P73 billion}$ this year. The focus is now shifting from broad coverage in urban centers like Metro Manila to building new cell sites in Geographically Isolated and Disadvantaged Areas (GIDAs). This GIDA strategy is crucial because it expands the addressable market and aligns with government digitalization goals, plus it increases the resilience of their network overall.

The demand is clearly there: mobile data revenue is a key growth driver, and average monthly data usage per subscriber was already at $\text{11.6 GB}$ as of the first nine months of 2024. That's a lot of streaming and social media. The real opportunity is pushing more affordable 5G-enabled devices to increase the $\text{17.3 million}$ mobile 5G user base recorded in 2025.

Fiber-to-the-Home (FTTH) infrastructure expansion to reach new markets

The fixed broadband business, PLDT Home, is a powerhouse, and fiber is nearly all of it now. In the first half of 2025 (H1 2025), fiber-only revenues rose 7% year-on-year to $\text{P29.5 billion}$, accounting for 97% of Home revenues. This transition away from older copper technologies is virtually complete.

The scale of the network is immense and still growing. As of H1 2025, the fiber footprint spans around 1.2 million cable kilometers, with the network having passed 19.01 million homes. This reach covers 74% of the country's towns and 91% of all provinces. They added 169,000 new fiber subscribers in H1 2025, bringing the total to $\text{3.53 million}$ connections. That's a three-fold increase in net additions compared to the previous year.

Here's the quick math on profitability: the average revenue per user (ARPU) for PLDT Home is the industry's highest at $\text{P1,485}$ in H1 2025, driven by over 80% of new customers opting for higher-value plans priced at $\text{P1,299}$ and above. High ARPU and a low churn rate of 1.93% show their service quality is resonating.

Investment in new international submarine cable systems for capacity

Global connectivity is a major strategic push, positioning the Philippines as a key data center hub in the Asia-Pacific region. PLDT is spending a portion of its 2025 CapEx on this, ensuring they can handle the explosion in international data traffic from hyperscalers (cloud providers like Amazon Web Services and Google Cloud Platform).

The Asia Direct Cable (ADC) system is a huge win, slated to be operational in the first quarter of 2025. This cable alone is set to boost PLDT's total international capacity to 100 Terabits per second (Tbps). Separately, the 12,000-kilometer Apricot cable system, a $\text{US\$80 million}$ investment, saw its cable-laying phase from Baler to Davao completed in March 2025, though full completion is expected by 2027. The Apricot system is capable of handling more than 211 terabits per second, which is future-proofing the network. The goal is to breach the $\text{Petabit-level}$ (1,000 Tbps) in international capacity in the next five years.

Competition from low-earth orbit (LEO) satellite internet, like Starlink

The rise of LEO satellite internet like Starlink is a technological risk, but PLDT has turned it into a strategic opportunity. Instead of fighting it head-on, PLDT Enterprise became the first and only telecom unit in the Philippines authorized to resell Starlink services as of August 2025. This is a smart move.

What this partnership does is leverage Starlink's strength-reaching remote areas where laying fiber is too expensive-to complement PLDT's existing fiber and wireless offerings. It's for enterprise clients in logistics, agriculture, and disaster response who need resilient connectivity in underserved areas.

To be fair, Starlink is not yet a threat to PLDT's core fixed broadband market. In mid-2024 internet quality tests, PLDT outperformed Starlink in key metrics:

• PLDT's average fixed broadband download speed was $\text{61.2 Mbps}$, while Starlink's was $\text{26.8 Mbps}$.
• PLDT's reliability score was $\text{435}$, significantly higher than Starlink's $\text{200}$ (on a 100-1,000 scale).

PLDT remains the largest in the broadband market, holding a $\text{45}$% market share. Starlink is a niche, high-cost solution for remote locations, not a mass-market competitor to the fiber business yet. The partnership is a way to neutralize the threat and expand the enterprise offering.

PLDT Inc. (PHI) - PESTLE Analysis: Legal factors

Strict compliance with the Philippine Data Privacy Act (DPA) of 2012

You know that data is the new oil, but in the Philippines, it's also a legal minefield. PLDT Inc. operates under the strict confines of the Philippine Data Privacy Act (DPA) of 2012, or Republic Act No. 10173, which carries penalties including mandatory imprisonment and significant fines for violations. A breach affecting over 100 individuals is considered 'large scale' and faces maximum penalties. This isn't a small-scale compliance issue; it's a massive operational risk.

To manage this risk at scale, especially with Smart Communications serving over 59 million mobile users and PLDT Home reaching approximately 3 million fixed-line customers, the company must invest heavily in its privacy infrastructure. In November 2025, PLDT and Smart took a concrete step by deploying a unified consent platform from the US-based software firm OneTrust. This Universal Consent and Preference Management (UCPM) system is designed to give customers granular control over their data, which is defintely a necessary move to both build trust and streamline compliance with DPA standards.

Ongoing legal scrutiny over spectrum allocation and license renewals

The National Telecommunications Commission (NTC) is actively managing the country's scarce radio frequency spectrum, and this is a major legal factor for PLDT. The NTC's actions in 2025 show they are serious about enforcing license obligations and spectrum efficiency. For instance, in April 2025, the NTC denied a competitor's appeal to extend its mobile operating license after the company failed to meet its rollout targets, having only deployed 6 out of the promised 2,306 base stations and having unpaid spectrum fees totaling over PHP 3.57 billion (roughly $62 million). This precedent signals zero tolerance for underutilized spectrum.

Furthermore, the NTC issued Memorandum Circular No. 003-09-2025 in August 2025, which mandates all public telecommunications entities (PTEs) to complete the full nationwide switch-off of their 3G mobile network services by December 31, 2026. This is a clear regulatory push to refarm the 3G spectrum for more efficient 4G, 5G, and 6G technologies, forcing PLDT to manage a significant, costly network migration project.

Anti-trust regulations monitor market dominance in key segments

The regulatory environment is shifting to dismantle the historical 'near-duopoly' in the Philippine data services market. The most significant development in 2025 is the 'Konektadong Pinoy' (Open Access in Data Transmission) Act, which lapsed into law in August 2025. This legislation is a direct anti-trust measure aimed at boosting competition by streamlining licensing for new entrants and mandating infrastructure sharing.

PLDT Inc. has expressed strong reservations about the new law, even hinting at a possible challenge to its constitutionality in the Supreme Court. The core concern is the lack of 'symmetrical obligations,' where new players can use PLDT's infrastructure without the same build-out requirements, which PLDT argues could lead to 'ruinous competition.' The Philippine Competition Commission (PCC) remains the primary anti-trust watchdog, though its most high-profile case against PLDT-the 2016 acquisition of San Miguel Corporation's telco assets for nearly P70 billion-remains legally constrained by a Court of Appeals injunction. The immediate risk is the impending release of the Konektadong Pinoy Act's Implementing Rules and Regulations (IRR), which are expected in the first week of October 2025.

Here's a quick look at the regulatory landscape's impact:

New cybersecurity laws require enhanced network protection measures

Cybersecurity is no longer just an IT issue; it's a matter of national security and legal compliance. The new Konektadong Pinoy Act, while pro-competition, has been criticized by incumbents like PLDT for potentially creating cybersecurity risks, as it allows new data transmission entrants up to two years to secure international cybersecurity certification. This places a higher burden on established players to maintain the overall integrity of the network ecosystem.

PLDT is responding by proactively engaging in public-private partnerships. In October 2024, PLDT, its wireless unit Smart Communications, and the government's Cybercrime Investigation and Coordinating Center (CICC) launched the PROTECTA Pilipinas (Protect Technology-Telecom Alliance). This alliance is focused on enhancing the resilience of critical telecom infrastructure, covering both cyber threats and physical threats like cable theft. The company has a history of significant spending in this area, having allocated P2 billion for cyberthreat operations in 2021, and the ongoing PROTECTA Pilipinas initiative ensures this high-level investment will continue into 2025 and beyond.

The key legal and operational focus areas for cybersecurity compliance are:

• Network Integrity: Maintaining security standards against new entrants who have a two-year grace period for certification.
• Physical Infrastructure Protection: Pushing for legal frameworks to explicitly protect telecom assets from vandalism and theft, a major operational issue.
• Regulatory Alignment: Advocating for the harmonization of the Data Privacy Act with other laws, like the Anti-Child Pornography Act, where data monitoring for law enforcement conflicts with privacy provisions.

PLDT Inc. (PHI) - PESTLE Analysis: Environmental factors

Focus on reducing carbon footprint from power-intensive network operations.

You know that running a massive telecommunications network, especially with the constant push for 5G and fiber-to-the-home, is incredibly power-intensive. PLDT Inc. is tackling this head-on with a clear decarbonization roadmap. The big goal here is a 40% reduction in Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 2030, benchmarked against 2019 levels. That's a serious commitment, one that requires a complete overhaul of their operational energy mix.

The near-term action is twofold: technology upgrades and energy efficiency. They are aggressively swapping out older, power-hungry copper lines for energy-efficient fiber optic cable, which needs less cooling. Plus, Smart Communications Inc., their wireless unit, is deploying Artificial Intelligence (AI)-enabled green radio solutions across its cell sites nationwide to optimize energy use in real-time. It's a smart move-using AI to manage a network is defintely a way to cut waste.

Increased adoption of renewable energy sources for cell site power.

The most concrete action supporting the carbon reduction target is the shift to renewable energy (RE). This isn't just a pilot program anymore; it's a strategic sourcing mandate. PLDT is leveraging the Competitive Retail Electricity Market (CREM) and the Retail Aggregation Program (RAP) to buy clean power in bulk.

Here's the quick math on their 2025 progress: 17 high-consumption facilities, including the main offices in Makati City, are now sourcing RE with a combined monthly electricity demand exceeding 15,000 kilowatts (kW). Also, PLDT and Smart Communications Inc. have registered 153 additional sites-that's 144 cell sites and nine other facilities-under the RAP, representing a combined demand of over 2,500 kW per month. They are also aiming to expand this RAP coverage to more sites in the Visayas and Mindanao regions by the end of 2025. Shifting to clean power is a smart way to manage volatile energy costs, too.

E-waste management protocols for disposal of older copper and network gear.

The Philippines is the third-highest generator of e-waste in Southeast Asia, with an estimated 540 million kilograms of e-waste, so PLDT's role in managing its own and consumer waste is critical. As the company continues its copper-to-fiber migration, the volume of obsolete network gear and copper wire needing responsible disposal is huge. This is where their 'Be Kind. Recycle.' program comes in.

The company is focusing on making collection easy and accessible for consumers, which helps divert hazardous materials from landfills. By the end of 2024, they had activated almost 180 e-waste collection sites and community partners nationwide. In 2025, they significantly ramped up public access through major partnerships:

• Deployment of e-waste collection drop boxes in all existing 85 SM malls nationwide.
• Activation of collection points in at least 13 schools, with plans to deploy in 11 campuses of the National University across Luzon and Visayas.
• All collected e-waste is turned over to accredited Treatment, Storage, and Disposal (TSD) facilities for proper handling and material recovery.

Climate change risk to physical infrastructure from severe typhoons and flooding.

The Philippines' geographic location makes climate change a massive operational and financial risk. PLDT has formally identified climate change as one of its top enterprise risks. With the Philippines frequently battered by typhoons-including a cluster of six consecutive ones in a 30-day span in late 2024, half of which were super typhoons-the threat to physical infrastructure is immediate and substantial. More severe storms, coupled with projected sea-level rise, increase the risk of storm surges and deep flooding that can disrupt connectivity and damage network assets.

To mitigate this, the company is continuously investing in climate resilience and business continuity planning, ensuring network services remain reliable even during extreme weather events. This includes hardening their infrastructure, which is validated by the global certifications they received in 2025 for network resilience. The shift to fiber is also a resilience play, as fiber cables are generally less susceptible to weather damage than copper. The goal is simple: keep the network running when communities need it most.