PLDT Extends Fiber Optic to Remote Philippines

PLDT has received a social loan of 2 billion pesos ($34.4 million) from HSBC Bank in the Philippines. The purpose is to expand its fiber optic infrastructure to remote and impoverished areas.

Social loans are a form of financing. And the proceeds are used to achieve positive social outcomes, such as increasing access to affordable basic infrastructure and services.

PLDT stated in a document submitted to the stock exchange on Wednesday that this social loan will support the expansion of its fiber optic network infrastructure. That is, “To cover fourth to sixth tier cities in the country, including geographically isolated and vulnerable areas (GIDAs).”

According to the Philippine Bureau of Statistics, as of June 2024, a total of 729 cities were classified as categories four to six. Currently, PLDT’s fiber optic network covers approximately 59% of these areas.

The Philippine telecom giant would expand its optical fiber services to more communities in the next few years. Also, it will give priority to the areas with the greatest connection demand. What’s more, it would enable new communities to benefit from data and Internet access.

“Our commitment to sustainable development includes a strong focus on digital inclusion. We expand our business in GIDs and low-income cities. That’s because we are helping to promote inclusive growth and development in some of the most remote areas of the country,” said Melissa Vergel de Dios, Chief Sustainability Officer of PLDT, in a statement.

Fiber optic connection is a supplement to wireless

The Philippine government has requested that the telecommunications industry focus on improving the connectivity of GIDAs, primarily through wireless connectivity, as part of its national digitization plan.

According to PLDT, installing fiber optic networks in these areas is a supplement to wireless connectivity. And expanding fiber optic services is crucial for providing education, healthcare, and economic opportunities to millions of Filipinos.

As of mid-2024, this telecommunications giant has connected 767 GIDAs to its fiber infrastructure.

Mimi Concha, Head of Wholesale Banking at HSBC Philippines, stated that the recent agreement reached with PLDT is the first social loan issued to a telecommunications company.

She said in a statement: “The project will help improve the Internet access of Filipinos in underserved areas. So they can actively participate in the digital economy and participate in competition.”

This is the second financing agreement reached between PLDT and HSBC this year. The telecommunications company has received a green loan of 1 billion Philippine pesos ($17.2 million). It can upgrade its network from copper cables to fiber optic. Because fiber optic networks consume less electricity and have a lower carbon footprint.

In May 2024, PLDT also received a green loan of 4 billion Philippine pesos (68.9 million US dollars) from Metrobank. It marks the company’s first green loan from a local financial institution specifically for expanding fiber optic infrastructure nationwide.