Building owners urged to ditch fees for indoor telco facilities

MANILA, Philippines — Ayala-led Globe Telecom Inc. said real property developers should scrap lease fees for the installation of telecommunication facilities in buildings, stressing that connectivity is as crucial as other basic utilities like water and electricity.

Ernest Cu, president and CEO of Globe, said in a statement on Monday the costs for in-building telco infrastructure have become a burden for internet service providers. These facilities include fiber cables and antennas to capture signals.

“When a developer starts building, they practically beg for power and water. Meanwhile, for us, we want to connect them but they say ‘pay first,’” he said.

“They actually put all the power facilities in the building to allow their tenants to connect. They don’t charge the water company for every faucet. Yet they want to charge us for every antenna we need to install,” Cu stressed.

Connectivity agenda

The major telco player said they have been in talks with building owners and developers to make internet connectivity more accessible.

READ: Globe accelerates rollout of in-building solutions to provide quality 5G indoor coverage

For example, Globe said a “top hotel” in Pasay recently agreed to remove charges for in-building solutions while retaining fees for outdoor connectivity facilities. This deal cut Globe’s leasing fees by 96.18 percent.

“We need members of the private sector who are very much interested in furthering the connectivity agenda. It’s only by working together that we can come up to speed with other countries out there that are truly digital,” Cu explained.

The Ayala-led company’s call is in line with the pending House Bill No. 8534, which pushes for the readiness of buildings and structures to accommodate information and communications technology infrastructure amid heightened digitalization.

The proposed law underscored the importance of internet access for individuals working from home, including those in the business process outsourcing and creative sectors.

Easing of permitting process

The government released last year Joint Memorandum Circular (JMC) 2023-01, which outlines the implementing rules and regulations (IRR) of Executive Order (EO) 32 otherwise known as “Streamlining the Permitting Process for the Construction of Telecommunications and Internet Infrastructure.”

READ: Malacañang: IRR for streamlined telco, internet infra construction out

The JMC mandates that permits related to construction of telecommunication and internet infrastructure be processed within seven days.

The IRR also instructed all cities and municipalities to set up one-stop shops for construction permits of active infrastructure such as antennas, antenna systems, transmitters, transmission systems, radio frequency modules, channel elements and other radio-communication systems.

EO 32 was signed by President Marcos last year to simplify the permitting process for internet and telco infrastructure. INQ