Study: Telcos, consumers winners in PH’s common tower policy

Local mobile network operators could save up to $1.15 billion in terms of capital and operational expenditures until 2025 through infrastructure sharing under the common tower policy, according to a study.

A recent report by independent tower company (towerco) edotco Group and management consultancy firm Roland Berger projects the construction of up to 30,500 shared towers in the country by 2025, representing towerco penetration of 10 percent.

“The more sharing that you have in the country, the more savings you see,” edotco Group CEO Mohamed Adlan Ahmad Tajudin told the Inquirer on Thursday. A common tower allows multiple telcos colocating at a single site and sharing on the operation expenses.

The study estimated that an individual tower site, depending on the size, location and height, could cost between $75,000 and $100,000 while spending for equipment could amount to $15,000 up to $40,000. Operation expenses, meanwhile, are seen ranging from $9,000 to $11,000 annually per tower.

“[In the] Philippines today, [there is] no sharing. That benefit is not there yet. But moving forward, with this common tower policy, that sharing will accelerate,” Tajudin explained.

Under the common tower policy, independent towercos will develop shared telco tower infrastructures to expand wireless network coverage and improve information and communication technology services across the country.

At the same time, Filipino consumers are seen saving up to $16.9 billion, or about 4.7 percent of the gross domestic product, by 2025 should towerco penetration reach 100 percent as it would make 5G connectivity affordable.

The study explained that towercos provide a level playing field for new entrants through a “more efficient wholesale market,” allowing further competition in the industry. Thus, more competition could lead to lower mobile prices and supporting innovation, resulting in better consumer experience.