PHOTO: Website of MIDC
Independent tower companies Phil-Tower Consortium Inc. and MIESCOR Infrastructure Development Corp. (MIDC), buyers of Globe Telecom Inc.’s tower assets, have completed the creation of their joint venture aimed at expanding 4G and 5G connectivity across the country.
Together, the companies now have 3,300 operational towers across the country. These can service all mobile network operator clients such as Globe, Smart Communications and DITO Telecommunity Corp.
“This move will not only improve network coverage and ICT (information and communications technology) services but also have a broader impact in the country’s socioeconomic development by fostering digital inclusion and empowerment especially in underserved areas,” MIDC president and CEO Richard Ochava said in a statement on Monday.
Devid Gubiani, CEO of the joint venture company, said the “combination of MIDC and PhilTower’s unique strengths and competencies will further digitization objectives in the Philippines as the country’s younger generation continues to drive exponential data consumption.”
PhilTower is led by Macquarie Capital and Pan-Asian Digital Shared Infrastructure Group: Global Network Inc. while MIDC is a joint venture between alternative investment management firm Stonepeak and Meralco Industrial Engineering Services Corp.
To recall, PhilTower and Globe entered into a P20-billion sale and leaseback deal for 1,350 towers. Meanwhile, Globe also sold 2,180 tower assets worth P26 billion to MIDC.
The sale and lease back of tower assets are in line with the government’s tower-sharing initiative, which seeks to beef up connectivity across the country.
Tower-sharing enables operators to expand footprint without putting up more facilities, which can also be cost-effective for them. Instead, operators will lease the towers from the independent tower companies that allow multiple users at a time.
PLDT Inc., Globe’s rival, also sold over 7,500 towers for P98 billion to several buyers. INQ