PLDT open to sell ‘non-strategic’ towers —MVP

Telecommunications giant PLDT Inc. is considering disposing off its tower assets considered as not “strategic” for the company’s dominant position, its chairman confirmed on Thursday.

“We are in the process of considering what to do with some towers… We've spoken to a number of international banks and they have enlightened us on the advantages of selling part of our towers,” PLDT chairman Manuel V. Pangilinan said in a virtual press briefing.

“We are open to the idea [but]  I think much of the data has to be worked out… whether the number of $800 [million] is the right number or not, we don’t know yet at this stage,” Pangilinan said.

The PLDT chairman was asked to shed light on a Bloomberg report that the telco is considering selling its local towers, which could be worth around $800 million.

The government implemented a “common tower policy” in which telcos will only have to lease towers instead of building their own aimed at reducing the cost of maintaining towers for the companies and eventually reduce the cost of telecommunications services.

“In our discussion with the banks, I think they managed to persuade us that if we were to let go of a certain number of our towers that were not strategic to our position to maintain our position as the dominant network in the country,” Pangilinan said.

“The ruling principle that guided our reluctance to let go of any network elements is because we have the most extensive and the best network in the country. So you don’t want to let that go because that will open you to competition,” the PLDT chairman said.

For his part, PLDT president and chief executive officer Al Panlilio said that such move by the company is still at an “early part of the process.”

“It has to be not only value additive to us but really in terms of the running of the towers. We have to ensure that those are done well,” Panlilio said.

For Pangilinan, selling some of its tower assets could be financially positive for PLDT.

“Purely from the financial transaction... could probably translate to a significant financial gain. Some of these towers are probably, fully, substantially appreciated,” he said.

“We are spending a lot of capex (capital expenditure) this year and that could help [our] financials moving forward as well. The job now is to identify those towers that are not quite strategic to what we want to achieve,” Pangilinan added.

In the first half of 2021, PLDT recorded a telco core income of P15.2 billion, up 10% year-on-year.

“Our initiatives in the first half of the year reassert the Group’s commitment to a digitally-empowered Philippines, providing world-class connectivity as a human right, positioning the country as a key player in the global arena, and actively embarking on sustainable development,” Panlilio said.—LDF, GMA News