DICT, ISOC Infrastructure sign MOU on telcos’common towers

The Department of Information and Communications Technology (DICT) on Thursday signed a memorandum of understanding with ISOC Infrastructure Inc. as the first common tower provider in the country.

The MOU is a commitment for both parties to assist in the common tower scheme.

The DICT commits to facilitate the permit and regulatory process, help identify and provide sites for telecommunications towers such as public buildings and government lots.

For its part, ISOC Infrastructure commits to work with telecom companies in rolling out improvement and expansion plans, especially in areas that are in dire need of access and connectivity.

In July, ISOC Infrastructure submitted an unsolicited proposal to build telecommunications towers for the government’s “common tower” initiative. 

“ISOC is the first to submit a proposal on common telco towers, and we recognize their determination and commitment to pursue this to help push the objective of providing faster, more reliable and affordable internet and telco services to the Filipino people,” DICT Acting Secretary Eliseo Rio said.

“The MOU is just in time for the entry of the third telco player and is part of the over-all plan to improve telco services nationwide,” Rio said.

In November, the National Telecommunications Commission officially declared Mislatel Consortium as the country’s new major player in the telecom industry. 

The consortium consists of Udenna Corporation and Holdings Corp., franchise holder Mindanao Islamic Telephone Co., and foreign partner China Telecommunications Corp. Both Udenna and Chelsea Logistics are led by Davao-based businessman Dennis Uy.

The government is bent on implementing a common tower policy to reduce the cost of telecommunications services by freeing telcos from costly expenditures in building their own towers or cell sites. 

The towers will be shared by telco operators, like PLDT Inc. and Globe Telecom Inc. as well as the third telco player.

ISOC Infrastructure chairman Michael Cosiquien said the tower-sharing model benefits not only the telecom operators but also the government.

“The MOU with the DICT is proof of our strong desire to invest in improving the telco infrastructure in the country and to help contribute in the development of this industry with the telco providers as our partners,” he said.

Rio earlier said the Philippines needs around 50,000 cell sites for the telcos to provide adequate service across the country.

The towers will be built by two common tower companies at no cost to the government, and the cell sites will be leased by the telcos.

Tower sharing is an existing business model in the telecom industry that has been proven effective in Southeast Asia, the United States, and other parts of the world, according to the DICT. —Ted Cordero/VDS, GMA News