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

In the early 1990s, obtaining a telephone landline in Metro Manila could take as long as 15 years, according to former Philippines Supreme Court Justice Antonio Carpio. The situation was even worse in the provinces, where many Filipinos struggled to even acquire a telephone line. This predicament stemmed from a structural issue within the telecommunications industry – PLDT, the dominant player, held a staggering 94% share of telephone lines by 1991.

Smaller operators relied heavily on PLDT for interconnection, particularly for calls outside their networks, giving the dominant company significant control over new entrants.

The Philippine Electronics and Telecommunications Federation (PETEF) was the industry group that, at the time, resembled a "tail wagging the dog." PLDT's influence was so immense that smaller operators found it challenging to offer nationwide services if their subscribers couldn't call people using PLDT.

In 1998, Hong Kong-based conglomerate First Pacific Company Ltd. acquired a 17.5% controlling stake in PLDT, ushering in a new era under Manuel "MVP" Pangilinan as president and CEO. Alongside Pangilinan, Antonio Carpio, a prominent Filipino lawyer and former associate justice of the Supreme Court, played a pivotal role in the administration's demonopolisation drive.

Carpio, who had faced difficulties opening his own law firm due to the lack of a telephone line, helped draft Executive Order No. 59, which became a central instrument of the telecom reforms. This order made compulsory interconnection between authorized public telecom carriers, leading to a universally accessible and fully integrated nationwide telecommunications network and encouraging greater private investment.