A. Historical Background and Development PLDT was incorporated in the Philippines under the old Corporation Law of the Philippines (Act 1459, as amended) on November 28, 1928 as Philippine Long Distance Telephone Company, following the merger of four telephone companies under common U.S. ownership. In July 2016, PLDT changed its name to PLDT Inc. Pursuant to Section 11 of the Revised Corporation Code, which states that corporations shall have perpetual existence unless the corporation elects to retain the specific corporate term indicated in its Articles of Incorporation, PLDT has a perpetual corporate term. PLDT’s original franchise was granted in 1928 and was last amended in 1991, extending its term until 2028 and broadening its franchise to permit it to provide virtually every type of telecommunications service. PLDT’s franchise covers the business of providing basic and enhanced telecommunications services in and between the provinces, cities and municipalities in the Philippines and between the Philippines and other countries and territories including mobile, wired or wireless telecommunications systems, fiber optics, multi-channel transmission distribution systems, VAS (including, but not limited to, the transmission of voice, data, audio and video), information services bureau and all other telecommunications systems technologies available. Our subsidiaries, including Smart, SBI and DMPI, also maintain their own franchises with a different range of services and periods of legal effectiveness for their licenses. Our principal executive offices are located at the Ramon Cojuangco Building, Makati Avenue, Makati City, Philippines and our telephone number is +(632) 8250-0254. Investors should submit any inquiries to the address and telephone number of our principal executive offices. Our website address is www.pldt.com. The information contained on, or accessible through, our website is not incorporated by reference into this Annual Report. The SEC maintains an internet site at https://www.sec.gov that contains reports, proxy and information 21 Table of Contents statements, and other information that we file with or furnish electronically to the SEC. For service of process in the United States, PLDT has designated Puglisi & Associates, located at 850 Library Avenue, Suite 204, Newark, Delaware 19711, as its authorized representative. Capital Expenditures and Divestitures See Item 5. “Operating and Financial Review and Prospects – Capital Expenditure Plans” for capital expenditures planned for 2026 and Item 5. “Operating and Financial Review and Prospects – Liquidity and Capital Resources” for information concerning our principal capital expenditures and financing for the years ended December 31, 2023, 2024 and 2025. Between February 17, 2023 and December 21, 2023, PCEV entered into four new subscription agreements with Voyager Finserve Corporation (VFC) and Paymaya Finserve Corporation (PFC, and together with VFC, the Bank HoldCos) to subscribe to a total of 19.6 million Common B shares each at a subscription price of Php0.10 per share, representing 60% voting rights and 1.48% economic interest in the Bank Holdcos. On December 13, 2023, PCEV, along with other existing shareholders KKR, Tencent, SIG, First Pacific Ventures Ltd. and Jumel Holdings, entered into a new subscription agreement with MIH to subscribe to US$80 million Class C2 convertible preferred shares of MIH. On the first closing, PCEV paid a consideration of US$28 million or Php1,563 million for 12.3 million MIH class C2 convertible preferred shares, thereby increasing PCEV’s ownership in MIH from 36.63% as at December 31, 2022 to 36.97% as at December 31, 2023. On various dates in 2022 and 2023, Smart and DMPI signed Sale and Purchase Agreements with Edotco Towers, Inc., Edgepoint Towers, Inc., Unity Digital Infrastructure and Frontier Tower Associates Philippines, Inc., or the TowerCos, in connection with the sale of 7,569 telecom towers and related passive telecommunication infrastructure for Php98 billion. As of December 31, 2025, we have completed the sale of a total of 6,815 telecom towers, or 90% of the towers portfolio under sale, for a total consideration of Php88,387 million. For additional details on the sale and leaseback of the telecom towers, see Note 9 – Property and Equipment and Note 10 – Leases to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. On January 5, 2024, PGIH entered into a Share Purchase Agreement for the sale of 227 common shares of Multisys Technologies Corporation (Multisys), representing a 4.99% equity interest, for a total consideration of Php270 million. The sale transaction was completed and fully paid on January 12, 2024. As a result, PGIH retained ownership of 2,080 common shares representing a 45.73% equity interest in Multisys. On March 24, 2024, PLDT invested Php754.5 million in Kayana to serve as a digital entity designed to harness the data assets of the MVP Group of Companies (MVP Group) and provide a platform for a Group-wide digitalization initiative, and further invested an additional Php85.5 million on September 27, 2024, resulting in a total equity interest of 60%. On September 30, 2024, Kayana entered into share subscription agreements with its shareholders, wherein PLDT subscribed to additional common shares valued at Php46.5 million and the remaining shareholders subscribed to additional shares valued at Php523.5 million. As a result, PLDT’s equity ownership in Kayana was reduced to 45%, leading PLDT to account for its remaining interest as an investment in associate. On September 1, 2025, Kayana entered into another share subscription agreement with its shareholders, wherein PLDT subscribed to additional common shares equivalent to Php594 million. PLDT’s equity ownership in Kayana remains at 45%. On April 5, 2024, PCEV paid the subsequent consideration of US$15.3 million or Php857 million for 6.7 million MIH Class C2 convertible preferred shares and received warrants for 2.7 million MIH Class C2 convertible preferred shares valued at Php152 million, resulting in an increase of PCEV’s ownership in MIH from 36.97% to 37.66%. On April 30, 2024, PLDT Inc. acquired 2,491,516 common shares of Radius, representing a 34.9% equity interest, for a total consideration of Php2,116 million. On April 2, 2025, PGIH entered into a Share Purchase Agreement for the purchase of 228 common shares of Multisys, representing a 5.01% interest, for a total consideration of Php257.5 million. The transaction was completed on April 5, 2025. Following this acquisition, PGIH owns 2,308 common shares representing a 50.74% equity interest in Multisys. B. Business Overview OVERVIEW We are one of the leading telecommunications and digital services providers in the Philippines, serving the fixed line, wireless and broadband markets. Through our three principal business segments, Wireless, Fixed Line and Others, we offer a wide range of telecommunications and digital services across our extensive fiber optic backbone and wireless and fixed line networks. As at December 31, 2025, we served 67.8 million users through the provision of mobile, fixed line and data services. 22 Table of Contents Our common shares are listed and traded on the PSE and our ADSs are listed and traded on the NYSE in the United States. Our three business units are as follows: Wireless. Our Wireless business segment focuses on driving the growth of our data services while managing our legacy business of voice and short messaging services (SMS). We generate data revenues across all segments of our wireless business, whether through the access of mobile internet via smartphones, mobile broadband using pocket WiFi or home WiFi using fixed wireless broadband devices. We provide the following mobile telecommunications services through our wireless business: (i) mobile services, (ii) fixed wireless broadband services, and (iii) other services. Fixed Line. We are the leading provider of fixed line telecommunications services throughout the Philippines, servicing retail, corporate and small and medium-sized enterprises (SME) clients. Our Fixed Line business segment offers data, voice, and miscellaneous services. We also offer secure data center, multi-cloud, cyber security, data and AI solutions through ePLDT Inc. and Vitro Inc. (Vitro), our ICT subsidiaries. Others. Our other business consists primarily of our interests in digital platforms and other technologies, including our interests in MIH and Kayana. We had a market capitalization of approximately Php272,230 million, or US$4,631 million, as at December 31, 2025. We had total revenues of Php218,388 million, or U$$3,715 million, and net income attributable to equity holders of PLDT of Php28,662 million, or US$488 million, for the year ended December 31, 2025. STRENGTHS AND STRATEGIES Strengths We believe our business is characterized by the following competitive strengths: •Exposure to Large and Attractive Markets. Our mobile data and home broadband services are well positioned to serve markets with continuing growth potential. As data adoption continues to grow in a market largely comprised of a young, digitally savvy population, combined with widespread smartphone ownership, the increasing utility of data for everyday activities, and with around 73% of our mobile subscribers being active data users as at December 31, 2025, we believe that demand for mobile data will continue to grow meaningfully. Meanwhile, we believe there is still room to grow in the home broadband market. After the opening of the economy and increased mobility after the pandemic lockdowns, PLDT continues to significantly serve the market demand for connectivity and home broadband services which allow our customers to work, study, conduct business and enjoy entertainment. •Superior Integrated Networks. With our extensive fixed and integrated telecommunications networks in the Philippines, we are able to offer a wide array of communications services. As part of our capital expenditure program, we continue to invest in expanding the reach and capability of our transmission and FTTH network and increasing our international bandwidth capacity. We also continue to invest in capacity and coverage of our mobile network to serve the unabated growth in mobile data traffic and provide our customers with faster, more reliable services and a superior data experience. To supplement our current LTE network and to prepare our network for the future, we continue to rollout 5G base stations. Our network architecture and investments also increase the resiliency and robustness of the network to enable minimum disruption to network services. PLDT’s domestic and international fiber optic networks connect to VITRO’s network of data centers which enables the seamless transfer and secured hosting of massive data flowing in and out of the country. •Recognized Brands. PLDT has a strong and diverse portfolio of brands, including PLDT Home, Smart, TNT, and PLDT Enterprise, among others, which are widely recognized brand names in the Philippines. •Diversified Revenue Sources. We have a diverse portfolio of business lines across our wireless and fixed line business segments, serving a wide spectrum of customer segments, including individuals, households and enterprises. Revenue sources of our wireless business include mobile (mobile data, voice, SMS, and inbound roaming and other mobile services), wireless home broadband, and other services. The revenues from data services, particularly mobile data services, have increased steadily over the past several years and account for 89% of the wireless consumer segment revenues as at December 31, 2025. Our fixed line business derives service revenues from consumer data/broadband, with 98% of service revenues in 2025 attributable to fiber, voice (local exchange, international and domestic services) and miscellaneous services. The fixed line business revenues also include contribution from our enterprise business, which mainly comprises corporate data and ICT services such as data center, cloud and cybersecurity solutions which are considered as an emerging growth driver because of the country’s rapid digital adoption. •Innovative Products and Services. We launched consumer products that answer the need for Connectivity, Entertainment, and e-Games such as the Smart App, our customer management app, Smart Live Stream, our video player app which houses the PBA and FIBA. To allow subscribers easy access to healthcare products and services, Smart has partnered with mWell for convenient access to online doctor consultations and other services via the mWell app, the Philippines’ first fully integrated health app. Smart also partnered with Metro Pacific Tollways Corporation to introduce a simpler and easier way of reloading the Easytrip RFID using the country’s first toll top-up via mobile load service. To 23 Table of Contents support businesses in their journey towards digitalization and cloud, PLDT Enterprise offers a fully-managed Software-Defined Wide Area Networking (SD-WAN) solution which enables customers to securely connect their multiple offices and branches and Smart Internet of Things (IoT) and obtain full control, transparency, visibility, and self-management of their Smart IoT SIMs. We also create and launch platforms, services and solutions in the area of digital financial services through our associated companies MIH, Maya Philippines, Inc. and Maya Bank, which was awarded the sixth and last digital banking license in 2021. •Strong and Experienced Management Team and Key Strategic Relationships. Our senior management combines decades of deep expertise in the telecommunications industry with diverse backgrounds in various industries, including banking, utilities, infrastructure and venture capital. We continue to refresh our talent pool with new hires who have either regional experience or digital expertise, among others. In addition, we have important strategic relationships with our institutional investors, namely, First Pacific, NTT DOCOMO and NTT Communications. We believe the technological support, international experience, and management expertise made available to us through these strategic relationships will enable us to enhance our market leadership and provide/cross-sell a wider range of products and services. Strategies The key elements of our business strategy are: •Focus on the customer and improving customer experience. One of the key pillars of PLDT’s strategy is a greater focus on customer-centricity through the delivery of an improved customer experience. The critical enabler of this is a network that serves our customers’ data and communication needs. In addition to investments in our network, we have also invested in platforms that support after-sales customer support, including call center capability, and data analytics. Our capabilities in the latter also allow us to better understand our customers and design products and plans that are tailored to their specific preferences. •Build on Our Strong Positions in the Fixed Line and Wireless Businesses. We continue to leverage on our strong brand equity in the market to help grow and expand our fixed and wireless businesses. In addition, having an expanded on-ground distribution network of retailers, complemented by our store presence nationwide, allows us to reach existing and potential customers. With the growing adoption of e-commerce, we are expanding our distribution network to include digital channels. We will continue to leverage our unique position of being an integrated network operator to further extract operational efficiencies and economies of scale. •Capitalize on Our Strength as a Fully Integrated Telecommunications Service Provider. We are committed to investing in our integrated fixed and wireless networks in the Philippines as we believe this is key to our ability to continue providing a differentiated experience and value proposition to our customers. We will primarily focus on improving our network capacity, coverage and reliability, areas in which we are market leaders, based on third party surveys. We intend to further enhance our leading position through strategic and synergetic investments in the network and IT platforms. We offer a broad range of telecommunications and ICT services. We plan to capitalize on this position to maximize revenue opportunities by cross-selling our products and services, and by developing convergent products that feature the combined benefits of voice and data, broadband, wireless, data center, cloud, managed services, and other products and services, such as our content portfolio which includes videos, streaming services, entertainment, music, shopping channels, and games. In line with the KP Act and its IRR, we will comply with applicable open access and Reference Access Offer requirements as may be prescribed by regulators, while continuing to focus our commercial strategy on differentiated, VAS delivered through service quality, innovation, and customer experience. •Maintain a Strong Financial Position. We are focused on growing profitability by complementing revenue growth with more effective cost management and operating efficiencies. As at December 31, 2025, we have a well spread out debt maturity profile, with 78% of debt maturing after 2028. We are focused on sequentially reducing our capital expenditure investments and capital intensity as we aim to maintain positive free cash flow and a leverage ratio of 2.0x net debt to EBITDA. We also have in place a dividend payout policy of 60% of core telecommunications income and regularly assess the return of capital to investors vis-à-vis the need to invest to grow the business. 24 Table of Contents •Identifying new areas for growth. As the digital space continues to evolve, PLDT continues to identify trends and evaluate business opportunities as possible sources of new growth, whether in the existing telco space or in adjacent businesses such as fintech, data centers, and AI, among others. •Commitment to sustainability. PLDT recognizes that in order to ensure long-term profitability, it must do business responsibly. As such, PLDT is committed to embedding sustainability in the business, and aims to be a leading ESG telecommunications operator in the region. Its ESG ratings have progressively improved, including its inclusion in the S&P Global Sustainability Yearbook for the second consecutive year. It recognizes its responsibility to identify risks and opportunities in the environmental, social and governance space, including the impact of climate change to the business, and implements the appropriate strategies in response. Part of PLDT's sustainability roadmap is a decarbonization roadmap that aims to reduce Scope 1 and 2 greenhouse gas emissions by 40% by 2030 against a 2019 baseline. It has also included sustainability targets in the organizational scorecard, including that of the CEO. OUR BUSINESSES Our business activities are categorized into three business units: Wireless, Fixed Line and Others. We monitor the operating results of each business unit separately for purposes of making decisions about resource allocation and performance assessment. See Note 4 – Operating Segment Information to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Wireless Our wireless business focuses on driving growth in our data services while managing our legacy business of voice and SMS. We generate data revenues across all segments of our wireless business, whether through the access of mobile internet using smartphones, mobile broadband using pocket WiFi or home WiFi using fixed wireless broadband devices. We provide (1) mobile services, (2) fixed wireless broadband services, and (3) other services, through our wireless business, with mobile services contributing 98% of our 2025 wireless service revenues, and fixed wireless broadband and other services contributing the remaining 2% of our 2025 wireless service revenues. Mobile data usage has surged in the past several years and now accounts for 83% of our mobile service revenues. Wireless revenues, gross of intersegment transactions, contributed 47% of our consolidated revenues for the year ended December 31, 2025 as compared to 49% in 2024 and 2023. Our mobile services, which accounted for 98% of our wireless service revenues for the year ended December 31, 2025, are provided through Smart and DMPI with 59,891,520 total subscribers as at December 31, 2025 as compared to 58,989,807 total subscribers as at December 31, 2024, and 57,827,126 total subscribers as at December 31, 2023. Based on corporate public disclosures, our estimated mobile subscriber market share stood at 42%, 45% and 47% as at December 31, 2025, 2024 and 2023, respectively. As at December 31, 2025, approximately 96% of our mobile subscribers were prepaid service subscribers. The predominance of prepaid service reflects one of the distinguishing characteristics of the Philippine mobile market, allowing us to reduce billing and administrative costs, as well as to control credit risk. Our mobile internet revenues, which primarily consist of our mobile data service revenues, increased to Php76,344 million in 2025 from Php75,061 million in 2024 and from Php71,268 million in 2023, primarily due to the increase in video streaming, gaming and social media data usage by our subscribers driven by the enhanced product offerings, marketing promotions and content partnerships. Migration initiatives also resulted in higher numbers of LTE and 5G device and data users. Our mobile internet revenues contributed 96%, 95% and 94% of our mobile data service revenues in 2025, 2024 and 2023, respectively. Mobile data traffic on Smart’s network increased from 4,898 petabytes in 2023 to 5,359 petabytes in 2024 and 5,550 petabytes in 2025, 13% higher compared to 2023. The following table summarizes key measures of our wireless business as at and for the years ended December 31, 2025, 2024 and 2023: December 31, 2025 2024 2023 Systemwide mobile subscriber base 59,891,520 58,989,807 57,827,126 Prepaid 57,534,812 56,731,489 55,667,880 Postpaid 2,356,708 2,258,318 2,159,246 Fixed Wireless Broadband subscriber base 457,290 446,082 439,815 Growth rate of mobile subscribers Prepaid 1 % 2 % (13 %) Postpaid 4 % 5 % 7 % Growth rate of Fixed Wireless Broadband subscribers 3 % 1 % (41 %) 25 Table of Contents (1) Mobile Services We offer prepaid and postpaid mobile communications services all over the country under the brand names Smart and TNT, each of which focuses on the needs of specific market segments. With a continuous and in-depth consumer understanding program, each of our brands commits to providing relevant products that will cater to the communications, entertainment and services requirements of its respective target market segments. Smart launched new products and network capabilities in 2025. Smart upgraded its core network and provisioned the 4G base for Voice over LTE (VoLTE) and enabled Video over LTE (ViLTE). Prepaid Smart Prepaid data, call and text cards are sold in denominations of Php100, Php300 and Php500, while TNT Prepaid cards are sold in denominations of Php50, Php100 and Php300. Our eLoad’s over-the-air reloads, which range from Php10 to Php1,000, are available through the Smart app, Smart and PLDT online stores, e-wallet providers such as Maya, e-commerce platforms such as Lazada and Shopee and via Smart eLoad retailers nationwide. The stored value of a prepaid card and eLoads remain valid for 365 days regardless of the denomination, pursuant to the MC No. 05-12-2017 issued by the NTC and the DICT. Smart also provides open-access data offers with its Giga Power, Magic Data, All Data and Power All services. These data packages provide access to any app or website and are priced from Php50 to Php499. In view of the SIM Registration Act, we recognize a prepaid mobile subscriber as active upon registration of the SIM card. Beginning in the fourth quarter of 2023, we consider a prepaid mobile subscriber as churned if the subscriber does not reload within 180 days after the full usage or expiry of the last reload and does not latch to the network within 180 days. In the fourth quarter of 2025, Smart launched hyper-personalized offers via Customer Value Management and social media channels to upsell users. In 2025, Smart also launched the multi-eSIM which converts any smartphone into an eSIM-capable device and Smart Travel eSIM which enables Smart subscribers to use their eSIMs while abroad. The Smart Prepaid brands also heavily promoted 5G with the 5G Max launch. Postpaid “Smart Infinity” is our premium mobile postpaid brand, priced from Php3,500 to Php8,000. With “Smart Infinity”, customers can enjoy local non-stop surf and uninterrupted local mobile services with the “Smart Infinity Limitless Plan”. This plan comes with a premium mobile device bundled with exclusive lifestyle perks and privileges accessible through a dedicated concierge. Smart Postpaid offers Signature plans with data priority. Smart Signature subscribers receive real-time billing and usage alerts on Smart app and have access to exclusive rewards, events and latest smartphones. Smart also offers enhance postpaid Signature Plans+ priced from Php999 to Php2,499. It provides higher data allocations with Unlimited 5G promo for 12 months and unlimited texts and calls to all networks including landline in the form of small, medium, large and extra-large plans. In 2025, Smart Postpaid added Plan 799 to its portfolio of postpaid plans and launched the Junior Plan which caters to the youth market as their first postpaid plan. In the same year, Smart Postpaid also introduced call forking for Samsung devices. Plans ranging from Php499 to Php599 were also introduced with unlimited texts and calls to all networks including landline. These fixed monthly plans alleviate concerns of unwanted charges. Smart Enterprise Postpaid is a mobile plan comprised of data, voice, and short message services, with a built-in data bill-cap feature that automatically protects the subscriber from unwanted excess charges, with plans priced up to Php2,500. Postpaid plans may be availed with or without a device bundle at a fixed monthly subscription, defined by a standard contract period. Other Mobile Services For international roaming, we offer various data roaming packages such as GigaRoam with up to 100GB for 10 days on popular travel destinations like Japan, South Korea, Thailand, Saudi Arabia, USA and many more. Data roaming plans range from Php150 to Php9,999, and are open to both prepaid and postpaid subscribers. Our SmartBro Home WiFi 4G devices start at Php599 with free unlimited WiFi valid for 30 days and connectivity of up to five devices, while Smart Bro Home WiFi 5G is offered at Php7,995 with 20GB open access data valid for seven days and connectivity of up to 10 devices. 26 Table of Contents (2) Fixed Wireless Broadband Services Prepaid Home WiFi (PHW) PHW is a wireless internet service introduced to address the growing demand for affordable home broadband in the Philippines. It is a plug-and-play device powered by Smart’s network that can simultaneously connect multiple WiFi-capable devices. In mid-2025, PHW launched Big Data which offers large data allocations for sharing with the family at home. In 2025, Smart launched its first postpaid plans for Fixed Wireless. Wireless revenues are driven and influenced by the following key metrics: (i)Growing data users and usages Our active data users reached 43.2 million as at December 31, 2025, while mobile data traffic as at December 31, 2025 increased by 4% from December 31, 2024 to 5,550 petabytes. Data traffic on Smart's 5G network grew in 2025, increasing by 88% as compared to 2024. This growth was driven by aggressive 5G network roll-outs and 5G product offerings. As part of its program to sustain the growing data usages of subscribers and maintain network quality, Smart continues to roll-out new sites in various locations throughout the Philippines. (ii)Strategic brand building campaigns and product innovations Our strategic brand-building campaigns and product innovations include aggressive 5G handset usage offers, and applications. To further stimulate and maximize the customer experience on 5G network, Smart offers various plans bundled with 5G capable handsets. Smart also offers device financing for prepaid devices including Apple devices for Smart Prepaid and TNT. Brand building and customer engagement hit new strides with Smart App, Smart’s mobile app which enables Smart subscribers to manage their accounts and enjoy exclusive offers and special promotions. Other features and integrations also further enhance customers’ digital lifestyle. Fixed Line We believe we are the leading provider of fixed line telecommunications services throughout the Philippines, servicing retail, corporate and small and medium-sized (SME) clients. Our fixed line business group offers (1) data services; (2) voice services; and (3) miscellaneous services. We had 3,689,997 fixed line voice subscribers as at December 31, 2025, a decrease of 21,374, or 1%, from 3,711,371 fixed line subscribers as at December 31, 2024, while our fixed line broadband subscribers increased by 362,142, or 11%, to 3,793,927 as at December 31, 2025 from 3,431,785 as at December 31, 2024. Revenues, gross of intersegment transactions, from our fixed line business were 60%, 58% and 57% of our consolidated revenues for the years ended December 31, 2025, 2024 and 2023, respectively. Domestic voice revenues have been declining largely due to a drop in call volumes as a result of the availability of alternative calling options and over-the-top (OTT) services, as well as subscribers’ shift to mobile services. An increase in our data service revenues in recent years has mitigated such decline to a certain extent. Recognizing the growth potential of data services, we have put considerable emphasis on the development of new data-capable and IP-based networks. Our fixed line network reaches all major cities and municipalities in the Philippines, with a concentration in the greater Metro Manila area. Our network offers extensive connections to our customers with the FTTH and fiber to the building (FTTB) installations. Our nationwide fiber backbone DFON extends to underground inland and submarine cables. It is a fully resilient network spanning the whole archipelago. Our international network is comprised of various regional and transoceanic submarine cable systems in which we have economic interests. We offer postpaid and prepaid fixed line services. Our prepaid fixed line services are intended to be an affordable alternative telephone service for consumers under difficult economic conditions. 27 Table of Contents The following table summarizes key measures of our fixed line services as at and for the years ended December 31, 2025, 2024 and 2023: December 31, 2025 2024 2023 Systemwide fixed line voice subscriber base 3,689,997 3,711,371 3,766,105 Growth rate of fixed line subscribers (1 %) (1 %) (2 %) Number of LEC employees 9,264 9,543 10,035 Number of LEC subscribers per employee 398 389 375 Systemwide broadband subscriber base 3,794,136 3,432,149 3,269,726 Fixed Line broadband 3,793,927 3,431,785 3,268,996 Fixed Wireless Broadband 209 364 730 Growth rate of broadband subscribers 11 % 5 % 1 % Fixed Line broadband 11 % 5 % 1 % Fixed Wireless Broadband (43 %) (50 %) (67 %) (1) Data Services Our data services include broadband, leased lines, Ethernet-based and IP-based services. These services are used for broadband internet and domestic and international private data networking communications. We also offer secure data center, multi-cloud, cyber security, data and AI solutions. Recognizing the growth potential of data services and their importance to our business strategy, we have placed considerable emphasis on these service segments. Our data services segments registered the highest percentage growth in revenues among our fixed line services from 2023 to 2025. (a)Home Broadband Services PLDT Home serves 3.76 million fiber subscribers nationwide as at December 31, 2025. PLDT’s FTTH fixed line network has an extensive transmission and distribution network infrastructure, providing broadband availability to 19.4 million homes passed in 74% of the country’s towns and 91% of total provinces as at December 31, 2025. The number of homes passed refers to the approximate potential number of residences that could avail of broadband connectivity services provided through PLDT facilities. PLDT’s robust FTTH infrastructure enables customers to enjoy symmetrical internet speeds of up to 10 Gbps, supporting bandwidth-intensive digital activities at home with various broadband solutions. In 2025, PLDT Home expanded into a new growth segment with the launch of Fiber Prepaid, addressing strong demand for flexible, prepaid connectivity solutions. PLDT Home also strengthened its postpaid offerings with the introduction of the Fiber Netflix plan, combining unlimited fiber internet, calls and entertainment in a single subscription. Further enhancing its broadband portfolio, PLDT Home integrated premium entertainment content, including Netflix, HBO Max and Cignal, into its high-speed plans. These value-added bundles continue to support PLDT Home's ARPU. PLDT Home also elevated customer experience with the Speed Add-On, allowing subscribers to boost their existing plans to up to 1 Gbps for an additional Php500 per month. In parallel, all PLDT Home fiber plan speeds were boosted to deliver up to twice the previous speeds, providing customers with enhanced value and enriched digital experiences. To further expand Filipinos’ access to reliable connectivity, PLDT Home rolled out its biggest Fiber Fest program in 2025, offering same-day fiber installations and exclusive digital experiences across Luzon, Visayas and Mindanao. Aligned with the PLDT Group’s long-standing commitment to advancing the United Nations Sustainable Development Goals (UN SDG), particularly UN SDG No. 9: Industry, Innovation, and Infrastructure, PLDT Home continues to accelerate fiber rollout in underserved communities. In 2025, the company expanded its fiber network to previously unfiberized barangays in provinces such as Abra, Aklan, Northern Samar and Southern Leyte, helping to bring reliable connectivity to more Filipino households. (i)PLDT Home Life In 2025, PLDT Home Life transformed PLDT Home to offer a more complete “household experience.” Built around three everyday needs, entertainment, security and smart home living, all powered by reliable connectivity, PLDT Home Life allowed customers to layer upgrades onto their Fiber plans. For example, the reliability of data connection was strengthened with PLDT Home Always On, which keeps households connected even when fiber service is disrupted. Entertainment expanded through IPTV and OTT add-ons, giving access to blockbuster films, award-winning series, premium HD/4K streaming quality, and faster access to titles following theatrical release windows, AAA gaming titles through IGV Game Pass, and Fiber plans bundled with top-tier content streaming partners, Netflix and HBO Max. Home security was strengthened through the Eufy portfolio, while smart living initiatives, such as the Smart Home Starter Kit, accelerating connected home adoption. 28 Table of Contents These upgrades enhanced performance and continuity, expanded content choices, and enabled a safer, smarter, and more modern home. More importantly, this direction laid the foundation for VAS to evolve beyond standalone bolt-ons into a curated ecosystem, one that is easier to discover, understand and adopt, supported by a unified customer journey and consolidated billing. Collectively, these initiatives reinforced PLDT Home’s promise of enriching everyday moments at home, with the VAS portfolio as a key driver of customer value, differentiation, and long-term loyalty. (ii)Home Rewards PLDT Home Rewards remained a key driver of customer value in 2025, providing a simple and benefits-led way for subscribers to earn and redeem Crystals for treats, promotions and discounts from partner brands. Members earn Crystals by paying their PLDT Home bills on time and in full, as well as through plan upgrades and add-ons. Under the program’s clear earn structure, every Php50 paid is equivalent to one Crystal, an approach that helps sustain engagement, encourage consistent on-time payments across the subscriber base and reward loyal customers. Customers can redeem Crystals to access exclusive deals and discounts from participating partners. This ensures that Home Rewards continues to deliver practical, day-to-day savings aligned with the needs of PLDT Home families. The program’s value proposition was strengthened by PLDT Home’s fiber-fast and reliable network, ensuring that rewards engagement, whether through billing, upgrades or add-ons, was anchored on a consistently strong at-home experience. This connectivity foundation supported the steady growth of the Home Rewards program and positioned it for continued expansion of partnerships and offers beyond 2025. (iii)Rates for home broadband services Monthly charges for our home fixed broadband services vary depending on bandwidth, speed, market demand and the competitive landscape. (b)Corporate Data and ICT Services PLDT Enterprise is the corporate business arm of the PLDT Group. It provides integrated digital, connectivity, and ICT solutions to enterprises and government institutions in the Philippines and overseas. Combining PLDT and Smart’s network leadership with the specialized capabilities of its operating subsidiaries, ePLDT, VITRO, PLDT Global, and Multisys, PLDT Enterprise offers fixed line and wireless connectivity, data center services, cloud and cybersecurity solutions, and digital platforms that support operational efficiency, service delivery, and digital transformation across multiple industries and sectors. ICT, Cloud, and Data Center Capabilities ePLDT, as the ICT subsidiary of PLDT, provides cloud, cybersecurity, data, and AI solutions to Philippine enterprises and public sector institutions. Its offerings are designed to address regulatory requirements, data security considerations, and varying business needs. ePLDT operates a multi-cloud portfolio which includes the country’s first sovereign cloud, a locally hosted cloud infrastructure designed to ensure that sensitive data remains within Philippine jurisdiction. The portfolio also covers public, private, and hybrid cloud services, IaaS, SaaS, and CCaaS, as well as AI-enabled platforms. These solutions are supported by professional and managed services. Professional services include cloud assessment, migration, optimization, and cybersecurity enhancement. Managed services involve the ongoing operation, monitoring, and maintenance of customer IT environments, allowing clients to focus on their core business activities. 29 Table of Contents ePLDT’s service capabilities are reinforced by strategic partnerships with global technology providers across cloud computing, cybersecurity, and AI. These commitments earned ePLDT industry awards such as Microsoft’s Solutions Partner for Security recognition and Elite Partner status from leading global technology partners. These partnerships enable ePLDT to support a broad range of enterprise and government requirements while maintaining alignment with international technology standards. In addition, in 2025, ePLDT launched Pilipinas AI, described as the country’s first sovereign AI solutions stack. This allows organizations to develop and deploy AI applications using locally hosted infrastructure, addressing data residency, security, and regulatory compliance requirements. VITRO, the PLDT Group’s data center subsidiary, marked its 25th year of operations in 2025. Since establishing the Philippines’ first commercial data center, VITRO has developed a nationwide network of carrier-neutral facilities, allowing multiple telecommunications providers to interconnect within the same data center, improving redundancy and customer choice. A key milestone during the year was the launch of VITRO Santa Rosa, the Philippines’ first AI-ready hyperscale data center. Hyperscale facilities are designed to support large computing loads, including AI-based and data-intensive workloads. VITRO Santa Rosa currently hosts ePLDT’s Pilipinas AI platform and supports enterprise and hyperscaler requirements. As demand for large-scale and AI-driven computing continues to grow, VITRO continues to invest in data center design, operational resilience, and energy-efficient infrastructure to support long-term digital and economic development. Beyond physical infrastructure, the Group continued to invest in workforce development through the VITRO Academy. Since its launch in 2025, the program has trained more than 400 students across three progressive levels focused on data center operations and related skills. From the inaugural graduating cohort, the majority advanced to paid internships, and selected top performers were offered full-time employment at VITRO. This initiative supports the development of local technical talent in a rapidly growing industry. Core Services: Fixed, Wireless, Satellite, and International Connectivity By integrating ICT, cloud, and data center capabilities with its core connectivity solutions, PLDT Enterprise delivers end-to-end fixed-line and wireless services to enterprises of all sizes across the Philippines. Wireless offerings include: •A2P messaging, which refers to business-generated messages sent to individual users; •IoT connectivity for connected devices; enterprise postpaid mobile services; and •network application programming interfaces (APIs) that allow enterprises to integrate telecommunications functions into their digital platforms. In 2025, to strengthen mobile security, PLDT Enterprise introduced SmartSafe SilentAccess, a silent authentication solution that verifies user identity in the background without requiring one-time passwords (OTPs). The service aligns with regulatory guidance from the BSP on enhancing digital security in financial transactions. During the year, PLDT Enterprise became the first Philippine telecommunications provider to receive Open Gateway API certification from the GSMA, a global mobile industry association. Network coverage was further expanded through 5G Fixed Wireless Access, an enterprise-grade solution that delivers high-speed internet to locations where fiber infrastructure is limited or unavailable. Beyond its wireless services, in 2025, PLDT Enterprise also introduced satellite-enabled enterprise connectivity through Starlink, becoming the first telecommunications provider in the Philippines authorized to resell the service for enterprise use. This offering extends high-speed internet access to remote and underserved areas. International connectivity was strengthened through investments in subsea cable systems, including the Asia Direct Cable (ADC), which reached operational and commercial readiness in the first quarter of 2025. ADC enhances regional connectivity and provides low-latency access to our leading VITRO data centers, including VITRO Santa Rosa. As a result of these investments, PLDT’s total international capacity reached approximately 100 terabits per second (Tbps). Domestically, PLDT operates an extensive fiber optic network which supports enterprise and broadband services for small and medium enterprises, enabling business expansion and digital adoption nationwide. 30 Table of Contents PLDT Enterprise also provides managed network services that integrate connectivity, monitoring, and operational management into a single service model. These services cover network design, deployment, ongoing optimization, and performance monitoring across multiple locations. Digital Inclusion Across Enterprise Markets and Public Sector Support To support digital inclusion, PLDT Enterprise partnered with the DICT, with support from the Private Sector Advisory Council (PSAC), to launch the Bayanihan SIM initiative. The program provides connectivity to students, teachers, and households in geographically isolated and disadvantaged areas (GIDAs), enabling access to digital education and essential online services. During the 2025 national elections, PLDT Enterprise supported the command center of the Parish Pastoral Council for Responsible Voting. The support included nationwide connectivity and technology services that enabled real-time coordination, monitoring, and data transmission for the organization’s parallel vote count. In support of government modernization and public safety initiatives, ePLDT led the rollout of Unified e911, a nationwide emergency response system developed in coordination with national government agencies. The platform integrates telecommunications infrastructure with a world class emergency services platform to improve response coordination and coverage. PLDT Enterprise also serves customers across sectors including SMEs, large enterprises, financial institutions, retail organizations, and government agencies. Internationally, PLDT Global continued to support carriers and multinational enterprises with digital and connectivity solutions, while Multisys delivered nationwide systems integration and software-as-a-service platforms supporting both public and private sector clients. With its integrated portfolio of digital infrastructure, connectivity, and ICT services, PLDT Enterprise remains focused on supporting enterprise resilience, regulatory compliance, and sustainable growth. Through continued investment in infrastructure, partnerships, and talent, the Group is positioned to support the evolving digital requirements of businesses and government institutions in the Philippines and selected international markets. Rates for Corporate Data and ICT Services Charges for our corporate data service vary by customer. (2)Voice Services Our voice services are delivered through our (a) local exchange service; (b) international service; and (c) domestic service. (a)Local Exchange Service Our local exchange service, which consists of the basic voice telephony business, is provided primarily through PLDT. We also provide local exchange services through our subsidiaries. Basic monthly charges for the local exchange service varies according to the type of customer (business or residential) and location, with charges for urban customers generally being higher than those for rural/provincial customers. (b)International Service We have been pursuing a number of initiatives to sustain our international service business, including: (i) rationalizing our inbound voice termination rates; (ii) managing unauthorized voice traffic terminating to our network; (iii) partnering with Saudi Telecom Company for inbound international long distance (ILD) traffic management; and (iv) growing international data sales by leveraging PLDT’s sub-sea cable ownership and PLDT Global’s reach. In addition, PLDT Global is enhancing the presence of PLDT in other international markets by providing high quality communications infrastructure and innovative platforms to global carriers, corporate customers and distribution partners, enabling it to achieve its desired connectivity, reach and business relevance. With offices in key markets abroad, PLDT Global also delivers a full range of digital consumer and enterprise solutions that serve the evolving needs of Filipinos overseas and global enterprises. 31 Table of Contents Our rates for outbound international calls are quoted in U.S. dollars and are billed in Philippine pesos. The Philippine peso amounts are determined at the time of billing. We charge a flat rate per minute to retail customers at any time on any day of the week. (c)Domestic Service Our domestic services are provided primarily through PLDT. This service consists of voice services for calls made by our fixed line customers outside of their local service areas within the Philippines and the domestic interconnect access charges by other telecommunications carriers for wireless and fixed line calls carried through PLDT’s backbone network and/or terminating to our fixed line customers. Mobile substitution, OTT voice call alternatives and the widespread availability of free non-voice communications, such as e-mails, SMS, video conferencing applications and social networking sites, have negatively affected our domestic call volumes. Rates for domestic calls traditionally were based on the type of service provided, such as whether the call is operator-assisted or direct-dialed. However, PLDT simplified these rates in recent years for calls originating from and terminating to the PLDT fixed line network and for calls terminating to fixed line networks of other local exchange carriers. PLDT also simplified its rates for calls terminating to mobile subscribers. In addition, PLDT bundles the free PLDT-to-PLDT calls in some promotions and product/service launches to stimulate fixed line usage. (3)Miscellaneous Services Miscellaneous services include the provision of facilities management, rental fees, and other services. We sell and distribute our products and services through the following channels: (a)Distributors and Key Account Partners We sell our fixed line and mobile services primarily through our regional and key account partners who generally have their own direct sales forces and retail networks. We have field sales distribution partners and key account partners for fixed line services, and exclusive regional and provincial distributors and key account partners for wireless services. A number of our trade partners are likewise major distributors of smartphones and devices that are retailed in their own telecommunications outlets. Account managers from our sales force manage the distribution network and regularly update these business partners on upcoming marketing strategies, promotional campaigns and new products. Our distribution network encompasses approximately over one million retailers, a combination of directly served outlets and retailers using e-wallets and loading apps to sell SmartLoad. With the prepaid reloading distribution network extended to corner store and individual retailer levels, Smart’s prepaid service has become even more affordable and accessible to subscribers. (b)Retail Stores Our frontlines enable unique digital experiences through daily customer interaction. We offer enticing products and services based on the customer needs. We also cater to customers’ after-sales requests and inquiries. Our stores accept payment for bills, postpaid and prepaid sales. Satellite branches are partner-owned Smart branded stores operating as auxiliary touchpoints for converged wired and wireless sales, aftersales and bills payment. (c)Enterprise Business PLDT Enterprise, together with its operating subsidiaries, ePLDT, VITRO, PLDT Global, and Multisys, is responsible for the sales and marketing of fixed line, wireless, corporate data, and ICT products and services to corporate partners including large domestic enterprises, SMEs, the public sector, and international customers. (d)Telesales As part of our telesales, we reach out to our subscribers to offer the latest services, solutions and promotions. Our telesales agents, in partnership with different contact center providers, enable new connect application and existing subscribers to avail value-added solutions, upgrade and migrate their fixed line and wireless accounts, as well as recontract their expiring accounts over the phone. All orders are delivered directly to customer’s address for devices and handsets. 32 Table of Contents (e)Online sales Customers can conveniently access our services through our PLDT Home website and Smart Online Store, an end-to-end portal, where they can conduct various online transactions, including selecting fiber broadband or mobile subscription plans, availing of a wide array of the latest 5G and 4G mobile handsets, renewing or upgrading an existing plan, purchasing prepaid SIMs, network devices or Smart Home devices, or subscribing for e-load and various add-on promotions. All orders are delivered directly to the customers’ addresses, while fiber broadband is installed to their respective homes. Smart App is a mobile application which allows users to link and manage multiple prepaid and postpaid accounts. With the Smart App, users can buy load, pay bills, subscribe to promotions, and earn Gigapoints. By offering various marketing promotions and events within the app, the Smart App has gained a lot of traction. Other online channels include My Smart website, Smart Chatbot, and Paywall which allow our mobile subscribers to avail of add-on promotions. For e-Commerce, the PLDT and Smart flagship stores are now available in Lazada, Shopee, Tiktok and NextUpgrade. Our presence in these e-commerce platforms will further enhance the accessibility of our products to customers. Others Our other business consists primarily of our interests in digital platforms and other technologies, including our interests in MIH and Kayana. MIH, Maya Philippines, and Maya Bank MIH is the ultimate parent holding company of Maya Philippines, Inc. (formerly PayMaya Philippines, Inc.). In addition, MIH holds investment in Maya Bank. Maya Philippines is registered with the BSP as an electronic money issuer, remittance and transfer company, operator of payments system, and virtual asset services provider. Maya Bank is one of only six digital banks in the Philippines licensed by the BSP. Together, Maya Philippines and Maya Bank power the platforms under the Maya group, providing the next generation of integrated financial products to both consumers and businesses in the Philippines. Maya continues to scale its consumer and business platforms to grow its ecosystem, expanding its portfolio of fully integrated financial services for its customers. As digital payments and banking adoption accelerate in the country, Maya’s approach enables it to drive financial penetration and reinforce its position as a leading player in the Philippines’ digital financial landscape. In 2025, the Maya group achieved profitability, driven by topline growth, high-engagement savings activity, and disciplined cost management. TECHNOLOGY INFRASTRUCTURE Wireless Network Infrastructure Mobile Our mobile network supports 5G, 4G and other technologies. We continue to expand our LTE capacity, increase our 5G coverage, and roll out more physical sites to widen our coverage in order to sustain the growing demand for our services. We believe our mobile network covers 97% of the population and is present in 97% of the country’s cities and municipalities, as at December 31, 2025. Fixed wireless services are also offered to residential and corporate clients through our high capacity mobile network. This complements our fibered fixed network as our fixed wireless services are able to reach areas that are not currently serviced through wired connections. Fixed Line Network Infrastructure Our fixed line network reaches all major cities and municipalities in the Philippines, with a concentration in the greater Metro Manila area. Our network offers extensive connections to our customers with the FTTH and fiber to the building (FTTB) installations. Our nationwide fiber backbone DFON extends to underground inland and submarine cables. It is a fully resilient network spanning the whole archipelago. Our international network is comprised of various regional and transoceanic submarine cable systems in which we have economic interests. 33 Table of Contents Domestic PLDT’s fixed line infrastructure is comprised of the latest technologies, delivering voice, broadband and ICT services to home and corporate customers. We deliver voice and high-speed broadband to each home through our all-fiber network, FTTH, an IP-based platform. At present, FTTH can deliver 2.5 Gbps and up to 10 Gbps, and we have deployed FTTH in all cities and in the majority of municipalities in the Philippines. This network provides broadband availability to approximately 19.4 million homes passed, as at December 31, 2025. PLDT provides enterprise and ICT services through its Carrier Ethernet network (CEN). PLDT’s CEN is based on Metro Ethernet Forum (MEF) 3.0, the latest standardized, carrier-class service and network. This highly reliable and resilient system provides high capacity and high-speed VPN services for all corporate customers. It supports enterprise requirements such as data storage, headquarter to branch connectivity, headquarter to disaster recovery site connectivity, cloud services and backhaul for mobile/LTE services. PLDT also uses the “Software Defined Wide Area Network” to deliver such enterprise services across different service providers and over the internet in a secured manner. We also have an IP backbone (IPBB) network, composed of high-capacity, high-performance core and edge routers, with capacities of up to 100Gbps per port in key exchanges that provide IP connectivity to the different network elements built for PLDT, Smart and other subsidiaries and affiliates. It serves as a common and highly resilient IP transport platform for all our IP-based services. In 2020, the IPBB underwent a transformation project called the “Transport Network Transformation Project” (TNT Project), which significantly increased the network’s capacity and upgraded its routing technology to the latest technology, including segment routing and software defined network (SDN) technology. All our networks are connected nationwide through PLDT’s nationwide fiber backbone, the DFON. DFON is comprised of transport nodes connected by terrestrial and submarine cable links configured in loops and appendages. The DFON loops provide self-healing and alternative segment route protection for added resiliency against single and multiple fiber breaks along the different segments. The DFON network also connects three of PLDT’s international cable landing stations. Following the implementation of the TNT Project, the DFON network gained added resiliency and network reliability as we implemented an automatic fail capability into the DFON network to automatically transfer traffic to other redundancy links in the event the DFON experiences downtime. The DFON is complemented by a terrestrial microwave backbone network to deliver services to remote areas unreachable by the fixed terrestrial transport network. International PLDT’s international network was designed and built to support IP-based international services, including voice, messaging, international enterprise solutions, and the Internet services of the PLDT Group. The international network also supports in part requirements of the international retail business run by PLDT Global in various locations in Asia, Europe and the United States. For voice services, PLDT operates two IP voice gateways. PLDT’s facilities allow the exchange of traffic with foreign carriers and can reach foreign destinations (including fixed and wireless network destination “breakouts”, or specific areas within a country) worldwide. The Company has international internet gateways to fortify PLDT Group’s infrastructure for internet and IP-based services, as well as connections of our fixed and wireless networks to content and internet services available from, and businesses connected to, the global internet. All these gateways employ high-capacity and high-performance routers. Together with ancillary facilities (such as security against network/service attacks), they provide premium and differentiated internet and/or IP services to all types of customers ranging from ordinary broadband to high bandwidth internet requirements of corporate customers, knowledge processing solution providers, ISPs and even other service providers. PLDT also operates offshore/ forward gateway routers in Hong Kong, Singapore, United States, and Japan to support optimized and direct access to content providers and businesses connected to the internet in Asia, as well as the continental U.S., which we expect to result in faster internet speed. All gateway routers utilize high capacity interface and transmission facilities. To localize international internet content, PLDT employs local transparent caching network, and additionally, a network of content provider/distributor-supplied local caching servers at key locations. With these facilities, high demand content from popular content and content delivery network providers are available locally and are delivered to PLDT customers. PLDT operates the Philippines’ most extensive international submarine cable network. As at December 31, 2025, PLDT maintains and operates three international cable landing stations in La Union and Batangas for international cables coming from the West Philippine Sea, and in Daet in the east for international cables coming from the Pacific Ocean. In May 2023, the NTC issued provisional authority to build new international cable landing stations in Baler, Aurora in the Northeast, which is targeted for completion in 2026, and in Digos, Davao in the Southern coastal borders of the Philippines, which was completed in 2025. These will provide telco carriers new alternative routes which do not traverse the usual West Philippine Sea Waters. 34 Table of Contents In February 2025, ADC went into service and is expected to support new fixed and mobile services requirements. PLDT is also working closely with other Asian carriers and Hyperscalers to build the Apricot Cable. The completion of the Apricot cable in 2028 will further augment PLDT's international capacity for data traffic, particularly to the U.S. and across Asia and the Pacific. PLDT’s international automatic optical transport switching system and carrier ethernet network continues to provide effective redundancy and continuity of service to Hong Kong, Japan, Singapore, and the U.S. Mainland for premium enterprise clients. Additional dedicated submarine cable circuits were provisioned, and capacity of nodes upgraded, to support growing business requirements. INTERCONNECTION AGREEMENTS Since the issuance of Executive Order, or E.O., No. 59 in 1993, which requires the non-discriminatory interconnection of Philippine carriers’ networks, PLDT has entered into bilateral interconnection arrangements with other Philippine fixed line and mobile carriers. See Item 1. “Description of Business – Licenses and Regulations – Regulatory Tariffs” for further discussion. PLDT has direct interconnection agreements with foreign carriers. PLDT also carries international calls terminating to Smart network where it has no direct interconnections. FRANCHISES, LICENSES AND REGULATIONS Franchises The table below provides the expiry dates of franchises for our Company and subsidiaries, renewal of which are subject to the provisions of the KP Act: Company Expiry Dates of Franchises PLDT November 28, 2028 Clarktel(1) June 30, 2024 Smart May 19, 2042 SBI November 11, 2047 DMPI April 1, 2028 CURE May 26, 2026 PDSI January 26, 2026 (1)Clarktel applied for an extension which remains pending with the Congress as at the date of this report. On November 20, 2024, Clarktel was granted a VAS license by the NTC valid until November 2029. However, with the KP Act coming into effect on September 14, 2025, Clarktel no longer requires a legislative franchise. Licenses Pursuant to RA 7925, a franchise holder is required to obtain a CPCN/Provisional Authority (PA) from the National Telecommunications Commission (NTC) to provide specific telecommunications services authorized under its franchise. The NTC, an attached agency of the Department of Information and Communications Technology (DICT) regulates and supervises our business under the provisions of the Public Service Act (RA 11659, as amended), Executive Order (EO) Nos. 59 and 109, and RA 7925. Material Effects of Regulation on our Business In addition to the KP Act, other laws enacted by the Philippine Congress and issuances of certain Philippine Government Agencies regulate the manner in which we conduct our business, including: •Executive Order No. 109, requires operators of international gateway facilities and mobile telephone operators to install a minimum number of local exchange lines. Smart and PCEV were required to install 700,000 and 400,000 rural lines, respectively, and each received a certificate of compliance from the NTC in 1999. •Republic Act No. 11930, otherwise known as the Anti-Online Sexual Abuse or Exploitation of Children (OSAEC) and Anti-Child Sexual Abuse or Exploitation Materials (CSAEM) Act. ISP's are required to develop, establish and install mechanisms or measures designed to prevent, detect, respond or report violations of this Act. •NTC Memorandum Circular No. 5-07-2009, issued on July 23, 2009, amends the mode of billing for voice services from per minute to per pulse billing, with a maximum of 6 seconds per pulse. On December 9, 2009, the NTC issued Show Cause and Cease and Desist Orders against Smart and other providers, alleging non-compliance with the Circular. On appeal, the CA in its December 28, 2010 Decision, reversed and set aside the NTC Orders. This decision was later upheld by the Supreme Court on February 13, 2023, finding that the NTC failed to provide Smart and other providers due process. 35 Table of Contents •NTC Memorandum Order No. 07-07-2011, issued on July 15, 2011, prescribes a formula for computing service reliability and sets the minimum service reliability at 80% for fixed broadband/internet. •NTC Memorandum Circular No. 07-08-2015, issued on August 13, 2015, sets the rules on the measurement of fixed broadband/internet speed. •NTC Memorandum Order No. 10-12-2016, issued on December 13, 2016, sets out the rules for measuring mobile broadband and internet access service, including guidelines for testing mobile broadband and internet speed. •NTC Memorandum Order No. 10-10-2017, issued on October 27, 2017, prescribes the migration of all existing seven-digit telephone numbers to eight-digit telephone numbers for local telephone service within the “02” local exchange area. •Joint Memorandum Circular (JMC) No. 05-12-2017 jointly issued by NTC, DICT and Department of Trade and Industry, (DTI), on December 20, 2017, extends the validity of all prepaid load to one year from the date of the latest top-up. Prepaid loads purchased for promotions and bucket of services with a specific period of use duly approved by the DTI and/or NTC are excluded from the mandatory one-year validity period. •Executive Order No. 56, issued by former President Rodrigo Duterte on May 25, 2018, institutionalized the Emergency 911 Hotline as the nationwide emergency answering point and replaced Patrol 117. •Memorandum No. 2018-055 issued by the National Electrification Administration (NEA) on August 15, 2018, sets the standard pole rental rate of electric cooperatives at Php420 per cable position per pole per annum. •Memorandum Order No. 04, series of 2018 issued by the DICT on December 14, 2018 and NTC Memorandum Circular No 01-05-2019, issued on May 31, 2019, directed PTEs and/or wireless service providers who offer customers mobile phones and devices, free of charge or at a subsidized cost, in exchange for an agreed fixed lock-in period to provide their customers convenient sites, facilities and processes to unlock the mobile phones and devices of customers who wish to change between compatible wireless service providers, provided that such customers must have completed the applicable lock-in periods and have no outstanding obligations under their subscription agreement. •Republic Act No. 11202 or MNP Act and NTC Memorandum Circular No. 03-06-2019 (the IRR of the MNP Act, issued on June 11, 2019), allow qualified customers to retain their mobile numbers when they move from one MSP to another, or change the type of subscription from postpaid to prepaid or vice versa. MNP is completely free of charge. •JMC No. 2019-001, series of 2019 (the IRR of the Ease of Doing Business Act), jointly issued by the Civil Service Commission, (CSC), Anti-Red Tape Authority (ARTA), and DTI on July 17, 2019, directs all agencies which provide Government service to reduce bureaucratic red tape and processing time, and to promote efficiency and simplicity of process. •Rules on the Accelerated Roll-Out of Common Towers, issued by the DICT on May 24, 2019, provides for the speedy roll-out of common towers and/or conversion of common towers including hard-to-access areas. •Department Circular No. 008 issued by the DICT on May 29, 2020, provides for the policy guidelines on the co-location and sharing of passive telecommunication tower infrastructure (PTTIs) for macro cell sites. •Executive Order No. 32 (Streamlining the Permitting Process for the Construction of Telecommunications and Internet Infrastructure) signed by President Ferdinand Marcos, Jr. on July 4, 2023, streamlined the permitting process for the construction of telecommunications and internet infrastructure. Executive Order No. 32 further extends the implementation of streamlined permitting processes and procedures under the Bayanihan to Recover as One Act (RA 11494) and the Joint Memorandum Circulars issued by the Anti Red Tape Authority, et al. which expired in September 2023. On December 1, 2023, ARTA released the signed copy of Executive Order No. 32’s IRR. •RA 11659 or the Amendment to the Public Service Act, which took effect on April 12, 2022, limits the definition of public utilities to the distribution and transmission of electricity, petroleum and petroleum products pipeline transmission systems, water pipeline distribution and wastewater pipeline systems, seaports and public utility vehicles. This law excludes telecommunications from the definition of public utility thereby allowing full foreign ownership in companies engaged in telecommunications. •RA 11934 or the SIM Registration Act took effect on October 28, 2022. Under this law, all end-users are required to register their SIMs with PTEs as a pre-requisite to the activation thereof. On September 18, 2023, the NTC issued Memorandum Order No. 010-09-2023 providing guidelines for PTEs in the conduct of processes to verify submitted information and data by end-users of SIMs under the SIM Registration Act and its IRR. •Memorandum Circular No. 2023-017 issued by the DILG on January 25, 2023, reiterated previous DILG issuance/policy enjoining local officials to exercise their powers to reclaim and clear public roads which are being used for private purposes. Consequently, many PLDT poles, including cables and cabinets, were required to be removed or relocated. •On September 27, 2023, the NTC issued a Memorandum ordering Public Telecommunications Entities to block or deactivate person-to-person text messages with clickable domains, Uniform Resource Locators (URLs), URL shortening services links, Smart Links and/or QR Codes. 36 Table of Contents •NTC Memorandum Circular No. 006-010-2023, issued on October 20, 2023, provides for a Zero Spectrum User Fee (SUF) for the use of radio frequency bands 2400MHz to 2483.5MHz, 5150MHz-5350MH, 5470MHz-5850MHz for wireless connectivity under: (a) short-range devices; (b) wireless data networks; and (c) broadband wireless access. See Item 3. “Key Information – Risk Factors – Risks Relating to Us – Our business is subject to extensive laws and regulations, including regulations in respect of our public ownership, service rates and taxes, as well as antitrust laws. Any changes in such laws and regulations or interpretations thereto, or failure to comply with regulatory changes, could adversely affect our business and prospects.” for further discussion. Regulatory Tariffs Interconnect access charges are paid by one carrier to another for calls originating from a carrier’s network and terminating to another carrier’s network. Pursuant to NTC Memorandum Circular No. 05-07-2018, effective on September 1, 2018, PLDT’s interconnection charges for all calls is uniformly set at Php0.50 per minute. PLDT has continually and actively negotiated with other legitimate Philippine fixed and CMTS carriers for interconnection based on the guidelines issued by the NTC and other authorized government agencies. These carriers include the major fixed and mobile players in the industry with nationwide operations, PAPTELCO and other non-PAPTELCO players, both of which usually operate in selected towns in the countryside. By virtue of RA No. 11202 or the MNP Act, interconnection fees or charges are no longer imposed by MSPs for domestic calls and SMS made by subscribers. Thus, since January 2, 2020, no interconnect fees are charged for mobile domestic calls and SMS. This provision does not cover interconnection fees charged by fixed-line operators. SEASONALITY Our business is not subject to any material seasonal fluctuations. COMPETITION The telecommunications market is competitive. Including us, there are five major local exchange carriers, seven major international gateway facility providers and three major mobile operators in the Philippines. Some new entrants in the Philippine telecommunications market have entered into strategic alliances with foreign telecommunications companies, which provide them with access to technological and funding support, as well as service innovations and marketing strategies. To protect our market position, we need to continually invest in our network infrastructure to comply with regulatory obligations and to ensure that our services remain competitive. We also need to be able to identify market trends and customer preferences for our services to remain relevant. See Item 4. “Information on the Company – Competition” for further discussion. Mobile Services Currently, there are three major mobile operators, namely Smart, Globe and Dito. As at December 31, 2025, mobile market penetration in the Philippines was approximately 125%, based on the number of SIM cards issued. Competition in the mobile telecommunications industry has remained active with greater availability of offers from telecommunications operators including increased data allocations and calls and texts resulting in declining yields. Competition has also increased in the postpaid space with more promotions involving greater handset subsidies. The principal bases of competition are price, including handset prices in the case of postpaid plans, quality of service, network reliability, geographic coverage and attractiveness of packaged services, including video content. In recent years, the prevalence of OTT services, such as social media, instant messaging and internet telephone, also known as VoIP services, has greatly affected our legacy revenues from voice and SMS services. We are also facing growing competition from providers offering services using alternative wireless technologies and IP-based networks, including efforts by the Philippine Government to roll-out its free WiFi services to various municipalities in the country. Data Services In recent years, the market for data services has been the fastest growing segment in the Philippine telecommunications industry. This development has been spurred by the significant growth in demand for consumer and retail broadband internet access, enterprise resource planning applications, customer relationship management, knowledge processing solutions, online gaming and other e-services that drive the need for broadband and internet-protocol based solutions both in the Philippines and abroad. Our major competitors in this area are Globe and Converge ICT Solutions, Inc. The principal bases of competition in the 37 Table of Contents data services market are coverage, price, content, value for money, bundles or free gifts, user experience, and customer service. PLDT remains committed to competing in this segment by leveraging on its overall strategy to focus on customer-centricity, maintain network leadership, broaden its distribution platform and increase its ability to deliver multimedia content. Voice Services Local Exchange Although the growth of the fixed line voice market has been impacted by higher demand for mobile services, we have sustained our leading position in the fixed line market on account of PLDT's extensive fixed line and transmission network nationwide. In most areas, we face one or two competitors. Our principal competitor in the local exchange market, Globe, provides local exchange service through both fixed and fixed wireless landline services. Fixed wireless landline services are delivered using mobile technology to a fixed device in the home with a tariff structure similar to that of a fixed line service such as the charging of monthly service fees. Our major competitor, Globe, offers services in limited areas of Metro Manila such as Makati and Las Piñas, the Visayas region and selected areas of Southern Luzon, such as Cavite and Batangas. International Revenues from this segment of the industry have significantly declined over the years with the advent of: (i) the popularity of alternative and cheaper modes of communication such as e-mail, instant messaging, social-networking (such as Facebook, Twitter and Instagram), including “free services” over the internet (such as Viber, Telegram, Line, Facebook Messenger, Zoom and WhatsApp, and similar services); and (ii) the establishment of VPNs for several corporate entities, which have further heightened competition. With respect to outbound calls from the Philippines the significance of which has also reduced over the years, we generate revenues through our local exchange and mobile businesses, which are the origination points of outbound international calls. We also have introduced a number of marketing initiatives to stimulate growth of outbound call volumes, including tariff reductions and volume discounts for large corporate subscribers. The number of inbound international voice calls into the Philippines continues to be negatively impacted by the popularity of OTT services due to improved internet access and the continued increase of smartphone adoption. One measure to slow down the decline in the remaining ILD traffic is PLDT’s strategic partnership with Saudi Telecom Company. Joint efforts on traffic sales management and anti-fraud programs have resulted in sustained business value for the ILD business. Domestic Our domestic service business has been negatively affected by the widespread availability and growing popularity of alternative economical to free non-voice methods of communication, particularly OTT services, e-mail and social media, resulting in the change in the market’s communications habits as evidenced by the growing number of mobile subscribers in the Philippines. In addition, VAS providers have launched voice services via the internet to their subscribers nationwide. While domestic call volumes have been declining, we have remained the leading provider of domestic service in the Philippines due to our significant subscriber base and ownership of the Philippines’ most extensive transmission network. ENVIRONMENTAL MATTERS Environmental Management and Stewardship Environmental management is a key component to PLDT’s sustainability roadmap and commitment towards responsible business conduct. Beyond regulatory compliance, we strive to continuously embed environmental stewardship principles into our operations, risk management, value creation, governance, and disclosure frameworks. Management Approach The PLDT Board of Directors, through its Governance, Nomination, and Sustainability Committee (GNSC), oversees the Company’s environmental and climate-related management strategies and programs. Additionally, the Board Risk Committee maintains parallel oversight of these matters with respect to the inclusion of climate and nature-related risks into the Company’s top enterprise risks. 38 Table of Contents Various Board-approved PLDT and Smart policies guide our environmental management approach, including our commitments on biodiversity, energy management, and water, as well as our CEO-approved Occupational Safety and Health & Environmental Commitments. These policies recognize the importance of environmental stewardship as a contributor to achieving business goals, as well as strengthening our alignment and compliance with environmental laws and regulations. These also foster alignment of values and commitments with our supply chain and business partners, reinforcing the PLDT Group Supplier Code of Conduct which enjoins suppliers to actively manage their environmental impact and ensure parallel compliance with regulations. To ensure continuous improvement and transparency, we adhere to the ISO 14001:2015 (Environmental Management System) Standards, and align with relevant environmental principles, indicators, and disclosure standards of the United Nations Global Compact, the Philippine Financial Reporting Standards S2 on Climate-related Disclosures, Taskforce on Nature-related Financial Disclosures, and CDP, among others. Operationalizing our commitments, PLDT and Smart Corporate Environment, Health, and Safety (CEHS), Property, Facilities, Asset Resilience Management (PFARM) and Network units implement environmental management processes and mechanisms to assess and manage our environmental impact, as well as ensure regular monitoring of the performance of all facilities, equipment, and generator sets across the country. These teams also create and implement risk mitigation plans for facilities located in or near ecologically protected areas, including reforestation initiatives and stakeholder consultation efforts. In addition, the PLDT Group has also designated Pollution Control Officers (PCOs) assigned to each company facility to reinforce environmental performance review and facilitate reporting on operational progress on a regular basis to the Department of Environment and Natural Resources (DENR), the Laguna Lake Development Authority, and other national and local regulatory bodies. The PCOs monitor compliance with laws and regulations on air, water, and pollution. Across the organization, we conduct various trainings and campaigns for employees to promote awareness and ensure understanding of the impact of workplace operations on the environment and in communities where we operate. To aid in the review and evaluation of our performance, we undertake periodic audits of our environmental management system through trained Internal Auditors and International Register of Certificated Auditors (IRCA)-certified Lead Auditors facilitating the implementation of the Environment, Health, and Safety (EHS) audit program across the different sites. In 2025, PLDT and Smart continued to enforce a Supplier Code of Conduct and complementing sustainability guidelines and EHS manuals. These mandate suppliers to actively manage their environmental impact and comply with applicable environmental laws and regulations as part of their supply chain management processes. CEHS teams successfully renewed relevant ISO certifications, following a surveillance audit conducted by the Group’s independent certifying body BSI Philippines Inc. The audit concluded with zero nonconformity findings, affirming the robustness, consistency, and effective implementation of the integrated Quality, Environmental, and Occupational Health and Safety Management System. This successful renewal builds on the milestones achieved in 2024, when PLDT earned certifications for various international standards, including the ISO 14001:2015 (Environmental Management System). Smart was likewise recommended for these same set of certifications. Opportunities for improvement identified during the audit were proactively addressed to further strengthen system effectiveness, governance, and operational discipline. These actions reinforce the PLDT Group’s culture of continuous improvement and its sustained commitment to high standards of quality, environmental performance, and workplace safety across operations. Beyond our own operations, we work with our supply chain to undertake regular assessments and stakeholder consultations to manage the environmental impact of our facilities and operations. We integrate environmental criteria in the screening performance of our suppliers and hold various engagements to foster alignment of the supply chain with our policies and standards on environmental management. Climate Change The PLDT Group continues to recognize climate change as one of its top enterprise risks. This considers the high-risk profile and vulnerability of the Philippines to the worsening impacts of climate change, including more frequent and severe typhoons and weather disturbances with consequential effects such as flooding. The effects of climate change increase the likelihood of damage to the Group’s physical infrastructure and network equipment, which can consequently disrupt operations and delivery of services. 39 Table of Contents In 2025, we have expanded conduct of a comprehensive analysis to identify the impact of various climate scenarios on our assets and financials. Results guide continuing efforts to integrate climate and nature-related risk mitigation strategies into key aspects of our strategic planning, operational design, resource allocation, employee upskilling, and supply chain management programs. Aside from managing physical impacts, the urgent need to address climate change in the Philippines may lead to the enactment of more stringent laws and regulations, which will further entail necessary investments, resources, and capacity-building efforts for the PLDT Group to remain compliant and competitive. We also continue to support the government in fostering a whole-of-nation approach towards climate action, helping ensure just transition of our key stakeholders and anchoring our climate strategies on human welfare. Operational Resource Efficiency In support of the Philippines' Nationally Determined Contribution under the Paris Agreement and the global ambition to achieve Net Zero by 2050, the PLDT Group developed a decarbonization roadmap that aims to reduce its Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 40% by 2030 against a 2019 baseline. Such target is underpinned by various initiatives that promote energy and operational resource efficiency, as well as the adoption of renewable energy and green technologies across our operations. These measures are also aimed at achieving resource cost-efficiencies and ensuring uninterrupted operations and delivery of services. In line with Republic Act No. 11285 or the Energy Efficiency and Conservation Act, the PLDT Group continues to strengthen its energy efficiency and management initiatives across its network sites and facilities nationwide. We have established dedicated teams and internal experts to manage our energy management performance, including Certified Energy Managers and Certified Energy Auditors. In addition, we have ramped up audits of the energy management performance of our critical network sites and base stations nationwide. These audits evaluate equipment performance, cooling systems, site layouts, and onsite energy practices to identify targeted improvements that enhance energy efficiency and strengthen network reliability. These also serve as capacity-building engagements for our field personnel, reinforcing their ability to apply energy management best practices on the ground. As part of our broader efforts to optimize energy use and advance our decarbonization roadmap, we implement various energy efficiency measures, including the installation of direct current generator sets, solar panels, and photovoltaic cells. These have been designed to enable us to ensure wireless network coverage in remote areas, and reduce our dependence on diesel-fueled generators in cases of power failures and emergency situations. We have also put in place a company-wide mechanism for fuel requests, as well as active tools to validate electricity use and improve resource consumption efficiency. Alongside energy efficiency initiatives, we have also been expanding supply partnerships to further increase the share of renewables in our energy mix, under the Department of Energy’s Green Energy Option Program and the Energy Regulatory Commission’s Retail Aggregation Program. For our fleet, we are advancing a rationalization program which is expected to contribute to reductions in our fuel consumption and GHG emissions. Meanwhile, we also keep track of our water consumption and operationalize water efficiency efforts, recognizing water as a scarce natural resource. These include the use of advanced cooling systems in our data centers and the installation of rainwater catchment systems in key facilities. We also ensure that our wastewater is treated and disposed of in accordance with regulatory requirements, especially for facilities not served by local water utilities. Throughout the year, we also integrate water into our organizational campaigns to promote employee awareness on our consumption and encourage them to contribute to efficiency initiatives. Circularity and Waste Management Circularity and effective waste management are among the key focus areas of the PLDT Group’s environmental management roadmap. With the goal of reducing our overall waste generation, we implement mechanisms continuously to track our waste performance, set targets for programs that minimize waste, capacitate our employees, and leverage innovation and strategic partnerships in support of circularity. To manage solid waste, we have deployed waste segregation mechanisms and refreshed waste bin systems to our facilities nationwide. In parallel, we continuously train our personnel to ensure adherence of each facility with national and local government regulations and waste collection schemes. 40 Table of Contents To manage plastic packaging waste, PLDT and Smart have strengthened commitment to the Extended Producers Responsibility Act (EPR) as registered Obliged Enterprises. In accordance with the law, the Group has engaged PCX Markets Philippines, Inc. as its Producer Responsibility Organization (PRO) for the implementation of its EPR programs and reporting. During the year, we continued to train our employees and enable communities to reduce waste that end up in landfills, particularly through our participation in the X-Trash Challenge of the Philippine Business for Social Progress and Basic Environmental Systems and Technologies. PLDT and Smart employees participated by segregating their waste and exchanging recyclables, such as plastics, paper, and metals for environmental points. Accumulated points were subsequently used to procure grocery packs, which were consequently donated to an indigent community in Quezon City. To promote circular use of network assets and better organize workplaces, we have strengthened our 5S Program and launched “AYOS 5S” in 2025. Under this program, we conducted a full inventory of network assets such as cables, radio equipment, modules, electrical and electronic components, computers, routers, servers, and power racks. Functional and reusable decommissioned network equipment were segregated for redeployment in new rollouts, sold, and repurposed, while non-usable assets were properly retired in accordance with environmental regulations. This initiative not only strengthened waste reduction and circularity practices, but also generated substantial cost savings, highlighting the business value of efficient asset utilization and responsible waste management. To manage our hazardous and electronic waste (e-waste), we have maintained partnerships with various hazardous waste transporters and treaters accredited by the DENR. These covered used lead acid batteries from company vehicles, as well as e-wastes generated within our facilities and own operations. Beyond our organization, we continued to expand our “Be Kind. Recycle.” program to encourage employees, customers, and stakeholder communities to properly dispose and recycling their e-wastes. While PLDT and Smart may not be producers of electronics, we recognize that the delivery of our services contributes to the generation of e-waste. To address this, we have set a target to make proper e-waste disposal and recycling accessible to PLDT and Smart employees, customers, and the public nationwide. Through partnerships with commercial establishments, schools, enterprise clients, and local government units like Baguio City where we continue to support a TSD facility, we have increased roll-out of e-waste collection bins and activated over 200 community partners from June 2023 to December 2025. INTELLECTUAL PROPERTY RIGHTS We do not own any material intellectual property rights apart from our brand names and logos. We are not dependent on patents, licenses or other intellectual property which are material to our business or results of operations, other than licenses to use the software that accompany most of our equipment purchases and licenses for certain contents used in VAS of our wireless business. See Note 14 – Goodwill and Intangible Assets to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. C. Organizational Structure See Exhibit 8. “List of Subsidiaries” for a listing of PLDT’s significant subsidiaries, including name, country of incorporation, proportion of ownership interests and, where different, proportion of voting power held. D. Properties and Equipment As at December 31, 2025, the PLDT Group owns three office buildings located in Makati City and owns and operates fixed line exchanges nationwide. As at December 31, 2025, our principal properties, excluding property under construction, consisted of the following, based on net book values: •45% consisted of central office equipment and network facilities, including IGFs, pure national toll exchanges and combined local and toll exchanges; •40% consisted of cable, wire and mobile facilities, including our DFON, subscriber cable facilities, inter-office trunking and toll cable facilities and mobile facilities; •7% consisted of land and improvements and buildings and improvements, which we acquired to house our telecommunications equipment, personnel, inventory and/or fleet; and •8% consisted of other work equipment. 41 Table of Contents For more information on these properties, see Note 9 – Property and Equipment to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. These properties are located in areas where our subscribers are being served. In our opinion, these properties are in good condition, except for ordinary wear and tear, and are adequately insured. The majority of our connecting lines are above or under public streets and properties owned by others. For example, for many years, the PLDT Group has been using the power pole network of Manila Electric Company (Meralco) in Metro Manila for PLDT’s fixed line aerial cables in this area pursuant to short-term lease agreements with Meralco with typically five-year and more recently one-year terms. The PLDT Group has various lease contracts for periods ranging from one to thirty years covering various items of sites, buildings, leased circuits and poles used in our operations. For more information on the obligations relating to these properties and long-term obligations, see Note 10 – Leases, Note 20 – Interest-Bearing Financial Liabilities and Note 27 – Financial Assets and Liabilities to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. We expect that in 2026, cash from operating activities should enable us to fund our capital expenditures for the continued expansion and upgrading of our network infrastructure. We expect to make additional investments in our core facilities to leverage existing technologies and increase capacity. Our current estimate for consolidated capital expenditures in 2026 will be in the mid-Php50 billion range. See Item 5. “Operating and Financial Review and Prospects – Capital Expenditure Plans” for further discussion on our capital expenditures.