Aboitiz InfraCapital joins pool of potential common tower builders

Aboitiz Group’s infrastructure arm joined the government’s initiative in building common towers for telecommunications companies.

The initiative opens the sunrise sector to potential investors.

On Thursday, Aboitiz InfraCapital signed a memorandum of understanding with the Department of Information and Communications Technology (DICT) on government support for common tower providers in the country.

The MOU was signed by Information and Communications Technology (DICT) Acting Secretary Eliseo Rio Jr. and Aboitiz InfraCapital CEO Cosette Canilao.

Aboitiz InfraCapital said it is “seeking to build, operate, and maintain a network of towers throughout the Philippines in a bid to improve the connectivity of the country’s cellular network.”

“This will likewise pave the way to the expansion of the capabilities of both current and future telecommunications companies,” it added.

Aboitiz InfraCapital is the seventh company to signify interest in joining DICT’s common tower initiative. The others are ISOC ECP Infrastructures Inc., Singapore’s ISON ECP Tower Pte. Ltd., IHS Towers, Malaysia’s edotco Group, and RT Telecom Sbdn. Bhd., and US-based America Towers.

Under the MOU, DICT has committed to support Aboitiz InfraCapital in facilitating permits, right of way, and other forms of government support in infrastructure.

The company has the responsibility to secure a binding contract with telco operators in the country.

“Once this is secured, a Memorandum of Agreement will then be discussed with DICT,” it said.

Canilao emphasized the need to build a robust, modern, and efficient telecommunications infrastructure “which is very crucial to the economic development of the Philippines.”

“The Aboitiz group possesses extensive experience in building and operating utility networks, for example, through its distribution utilities Visayan Electric Co. Inc. (VECO) and Davao Light and Power Co., Inc. Moreover, the Aboitiz group has established a strong track record in management and execution of complex projects,” she said.

Through sister company AboitizPower, Aboitiz InfraCapital can tap the expertise in providing efficient solutions in meeting the power requirements of the cellular towers, Canilao added.

Rio noted Aboitiz InfraCapital has the financial capacity to invest in towers it can lease to telecommunication companies.

Because of its advantages, the company has a huge potential to meet the requirements of common tower providers, he said.

“All cell sites need power, so the others will have to get it from outside their organization. Except for Aboitiz, they can get power using their sister company,” Rio added.

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 telcos, like PLDT Inc. and Globe Telecom Inc. as well as the third telco player.

Rio 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 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 DICT. —VDS, GMA News