Globe moves to help create a independent tower company in the Philippines.

Setting up cellsite towers has been one of the biggest bottlenecks and headaches for telecom operators in the Philippines… with around 25 permits to secure and a lot of problems to overcome.. the process is very time consuming.. and to help speed that up.. Globe has started talking to 3rd party companies that can actually set up the towers themselves in the locations that are needed and eventually lease them out to anyone that needs to have coverage in that area.

Globe Telecom  has 8,000 nationwide which they themselves operate and maintain around the clock.

Globe President and CEO Ernest Cu said, “We have been allocating over 30% of our total revenues to capital expenditure for the past five years and this level will be sustained over a period of time. An independent tower company will be a win-win solution.  It will monetize assets for capex use and help maintain our consistent dividend policy. In addition, this greatly helps President Duterte’s initiative to open the telco industry to new players.  The plan is for these towers to be open for lease to new and existing players. This effectively lessens the barriers that a new entrant has to endure because they will not have to spend the capex to build towers and instead focus on rolling out the necessary network equipment. This significantly reduces the time needed for a new player to rollout given the 25 permits and up to 8 months required to build one cell tower. Our move is also consistent with our position of being open to more competition in the telecommunications industry.”

With the increasing demand for faster internet services… the next few years will be rough if Telecom companies cannot build up their infrastructure faster.

“We hope to continue working with the government to reduce the red tape that is currently being encountered in the permitting and right of way process. The only reason we are able to keep up with the demand for wireless data is because of the ultra-high capacity nature of our sites,” said Cu.

Capital Expenditure for Globe has been ramping up year by year with as much as P26.8 billion in 2012 to P36.7 Billion in 2016 and P42.5 billion in 2017.  The company recently disclosed its capital spend of P43.5 billion for 2018.  Globe has been averaging 31% annually of capex spending to total revenues.

“We are one with our customers who want to see further development of the telco industry in the country.  We have been helping the nation in providing opportunities for more Filipinos by providing them with connectivity and access to the internet, enabling industries like BPO to flourish, creating connected cities in the rural areas, initiating financial inclusion with e-payments and e-commerce, and enhancing the digital lifestyles of our customers through world class content and product offers.  The sustained high capital spending year on year creates a ripple effect on the whole ecosystem through more jobs and better opportunities down to the sari-sari store level,” said Cu.

Compared to other countries, The Philippines has the one of the lowest tower densities in the world, with under 20,000 towers serving a population of 100 million people. Compared to Vietnam, which has a  population of 90 million, has 70,000 towers for its telecommunications needs, which basically makes it 1,285.71 people to 1 tower compared to the Philippines with 5,000 people to 1 tower.

 

Ron is a happily married man for more than 10 years, the father of 3 boys. Loves to write about places that he visits. And works in the BPO industry.