Edotco telco tower sharing in full swing by next year

MANILA  -Telecommunication tower company (TowerCo) Edotco Group is aiming to house all of the mobile service providers under the same facilities by next year—a move that supports tower-sharing initiative in the country that seeks to expand connectivity.

Suraj Narayanan, Edotco country manager, told the Inquirer they were already operating the 2,974 towers it acquired from PLDT Inc. for P42 billion last year. The transfer of assets was completed last September.

Some 50 towers in Naga, in fact, were hosting both PLDT and its rival Globe Telecom Inc., Narayanan said.

Now, Edotco is also at the “advanced stage on finalizing the discussion” with the newest entrant DITO Telecommunity for a collocation deal. Narayanan said they were aiming to conclude this by the first quarter of next year.

“Tower sharing is crucial. It enables us to provide good service to the Filipinos,” he said.

Tower sharing enables operators to expand footprint across the country without putting up more facilities, which can also be cost effective for them. Operators will instead lease the towers from the independent tower companies that allow multiple users at a time.

“That enables the operators to free up capital expenditures for network upgrades,” he explained.

By the end of first quarter of next year, Edotco is also eyeing to start the construction of 300 towers for PLDT, which is part of its commitment under their sale and leaseback deal.

The tower company has completed 250 out of about 300 towers it is set to build for Globe.

Core market

Narayanan said the Philippines is seen as a core market for the Malaysian towerco given the opportunities for growth. For one, he noted the lack of towers servicing the country’s big population.

In the country, the Edotco official said a tower serves 7,500 subscribers. While many have coverage, he explained this means poor quality because each single facility serves more customers.

The ideal ratio would be 1,200 subscribers per tower, he said, which is about the same level in Vietnam where there are 90,000 towers. The Philippines has only 32,000 towers, Narayanan noted.

Amid the urgency to build more telco infrastructure, Narayanan commended the government for releasing the Executive Order 32, which streamlines the permitting process for the construction of telco and internet facilities.

According to its implementing rules and regulations, local government units should issue the required building permits within seven days.