Smart Communications Inc. and Dito Telecommunity Corp., two of the country’s top telecommunications companies, made remarkable strides in the global 5G landscape recently during the 2024 Opensignal 5G Global Awards.
Their achievements in 5G technology not only bolster the country’s position in global telecommunications but also pave the way for enhanced digital solutions, particularly in the fintech sector.
Smart’s achievement as a 5G rising star
Smart Communications, the largest mobile provider in the Philippines, was recognized as one of the 5G Global Rising Stars. The award highlights Smart’s significant improvements in 5G voice and gaming, as the company improved its gaming experience by 11% and enhanced its voice call quality by 3%. These improvements place Smart alongside other top-performing telecoms such as Romania’s Digi Mobil and Mexico’s Telcel.
Smart’s improvements are especially relevant to the fintech industry, where seamless communication is critical for financial transactions, customer service, and fraud prevention. Improved voice services over 5G can enhance customer interactions for banks, e-wallet providers, and other financial institutions, particularly in rural areas where access to high-quality digital infrastructure has historically been limited.
Dito Telecommunity’s rise to global leadership
Meanwhile, Dito Telecommunity, a relatively new player in the Philippine telecom industry, has quickly established itself as a global leader in 5G technology. The company was recognized in the 5G Global Leaders category for its outstanding download speed and network availability, placing it alongside global telecom giants such as Australia’s Vodafone and France’s Orange.
Dito’s average download speed of 302.1 Mbps placed it among the top tier of 5G providers worldwide, while its 5G availability—allowing users to connect 29% of the time—demonstrates the company’s significant investment in expanding its network.
Dito’s rise is particularly impressive given that the company only launched its 5G services a few years ago. Competing against more established players in the Philippine market like Smart and Globe, Dito’s rapid growth showcases its commitment to providing advanced connectivity across the nation.
This increased availability of 5G networks has critical implications for the fintech industry, enabling faster and more reliable digital financial services.
Enhancing the Philippines’ fintech sector
The recognition of Smart and Dito as global 5G leaders brings significant potential for the Philippine fintech sector.
5G technology is a key enabler of financial technology, as it offers faster data transfer speeds, lower latency, and more reliable connections. These advancements are crucial for fintech applications, including mobile banking, digital payments, and blockchain-based transactions.
For fintech startups and established financial institutions alike, the availability of robust 5G networks opens new possibilities.
For example, rural banks and microfinance institutions can leverage 5G to offer real-time digital financial services to underserved areas, reducing the barriers to financial inclusion. Additionally, faster and more reliable 5G networks can enhance the security of online transactions, helping fintech companies detect and prevent fraud more effectively.
The rise of 5G also supports the growing demand for mobile wallets and digital payment platforms. With more Filipinos using mobile devices for financial transactions, the need for high-speed and stable internet connections is crucial. 5G networks can ensure that these services operate smoothly, even during peak times, providing a seamless experience for users.
Moreover, the adoption of 5G technology can spur innovation in fintech solutions such as artificial intelligence (AI) and blockchain. AI-powered financial advisory services, real-time analytics, and personalized customer experiences will benefit from the ultra-low latency of 5G, allowing fintech companies to offer more sophisticated products and services.
Blockchain technology, which relies on secure and fast data processing, will also thrive in a 5G-enabled environment, facilitating faster and more secure transactions for digital assets and cryptocurrencies.
Empowering financial inclusion
The expansion of 5G networks across the Philippines also aligns with the government’s goals of improving financial inclusion. With faster internet speeds, fintech companies can reach more Filipinos, particularly those in remote and underserved areas. The use of mobile wallets, digital lending platforms, and online banking services will become more accessible, helping to bridge the gap between the unbanked and formal financial systems.
For instance, e-payment platforms can operate more efficiently in areas with limited banking infrastructure, allowing individuals to participate in the digital economy even without access to traditional banking services. This can drive economic growth in rural communities and help reduce poverty levels.
Earlier this year, the Bangko Sentral ng Pilipinas (BSP) reported that e-payments have continued to surge in the Philippines, with PESONet and InstaPay transactions reaching P10.9 trillion in 2024.
The global recognition of Dito Telecommunity and Smart Communications at the Opensignal 5G Global Awards underscores the growing influence of Philippine telcos on the world stage. Their advancements in 5G technology not only enhance the country’s telecommunications infrastructure but also provide critical support for the fintech industry.
With faster, more reliable connections, fintech companies can offer more innovative solutions, drive financial inclusion, and support the digital transformation of the Philippine economy.
As the 5G landscape continues to evolve, the fintech sector is poised to benefit significantly from the enhanced connectivity and technological advancements led by companies like Dito and Smart. This transformation will not only empower businesses but also improve the lives of millions of Filipinos by providing them with greater access to digital financial services.