Telco sets up new firm to divest tower assets
Globe Telecom Inc. is setting up a separate company to divest its tower assets and improve internet connectivity in the country.
"Globe Telecom has taken a step forward to fulfill its plans to divest its tower assets," the telco said on Friday.
It disclosed to the Philippine Stock Exchange on Thursday that it started the process of incorporating a separate tower holding company.
"As soon as it gets approval from the SEC, this will operationalize the divestment of all or part of its tower assets through a separate company," Globe said.
Early this year, the company initiated talks with independent third parties regarding its tower assets.
The government has decided to ease the proposed rules on "common tower" policy, and allowed telcos to build their own towers if an accredited tower builder is not about to fulfill the requirements.
“As a major industry player we understand what this country needs to improve the internet experience of our customers. Putting up more towers based on global standards within strategic areas will make spectrum use more efficient," Globe president and CEO Ernest Cu said.
Globe said it has been pushing for the establishment of tower companies similar to those found in other developed countries.
With the proposed tower holding company, any player can lease the towers using standard, non-discriminatory commercial terms.
The lack of cellular towers has long been identified as the greatest barrier to seamless mobile internet connectivity with no viable shortterm solution due to permitting issues, according to Globe.
"We remain open to collaborate with new and existing players in the interest of national development,” Cu said.
The Philippines has one of the lowest tower densities in the world with less than 20,000 towers serving 100 million people.
Approximately 50,000 more towers should be built in order to serve current voice and data traffic that continuously grows exponentially every year, according to the Department of Information and Communications.