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DICT halts search for towercos

March 15, 2019

While the tower sharing business continues to attract investors, the Department of Information and Communications Technology (DICT) said on Thursday it may stop entertaining tower companies (towercos) in the meantime.

Department of Information and Communications Technology. PHOTO BY REVA ANNE MARCELO

This was revealed by acting DICT chief Eliseo Rio Jr. after the agency signed a memorandum of understanding (MoU) with South Korea’s Shinheung Telecom Co. Ltd. and homegrown Alt-Global Solutions, Inc.

“We can stop here for the meantime … we will maybe pause if we have already overreached the capacity of the industry. We really have no data on how many the industry can accommodate,” he said following the signing in Quezon City.

Rio noted that out of the 15 groups, the industry might only need four to five companies. However, he also stressed the number of towercos serving the industry would be driven by market forces as the telecommunications firms would be the clients.

Opening the industry to more players aims to hasten the deployment of 50,000 cell sites across the Philippines. The country has less than 20,000 towers. Lisbet K. Esmael

Under the MoU, the DICT will provide support once the groups secured business transactions with a telco carrier, where the entity would use its shared cell sites.

Currently, the common tower initiative already has 15 potential towercos, including ISOC Infrastructures, Inc.; ISON ECP Tower Pte. Ltd.; IHS Holding Ltd. (IHS Towers); edotco Group Sdn Bhd; China Energy Equipment Co. Ltd.; RT Telecom Sdn Bhd.; Aboitiz InfraCapital, Inc.; MGS Construction, Inc.; Frontier Tower Associates Management Pte. Ltd.; the consortium of Global Networks, Inc. (GNI) and JTower, Inc.; American Tower Corp. (ATC); J.S. Cruz Construction and Development, Inc.; and Desarrollos Terrestres (DT Towers).

Credit belongs to : www.manilatimes.net

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