“Increased foreign investment in the telecoms and technology sectors will serve the growth of such assets, particularly terrestrial fiber networks where coverage is particularly limited,” think tank Fitch Solutions said in a commentary e-mailed to reporters on Wednesday.
“Downside risks to foreign investment and improvements to fixed networks include the Philippines’ proximity to escalating tensions between China and Taiwan, as well as the appeal of mobile broadband,” it also said. “In June 2021, we covered Alibaba’s entry into the Philippines’ cloud computing market which we see as potentially the beginning of a peak in activity from hyperscalers that are reconsidering the placement of data centers in Asia in the midst of heightened tensions in the South China Sea, China’s National Security Law and concerns over the sustainability of recurrent data center construction in certain markets,” the think tank said.