THE Manila-based multilateral development bank, the Asian Development Bank (ADB), is keen to extend more support to the country’s telecom tower sector to address the infrastructure gap.
In an email to the BusinessMirror, ADB Senior Investment Specialist Aditi Bhattacharya said the country needs to have at least 60,000 more towers by 2031 to boost coverage in underserved areas.
With this, ADB and Security Bank Corporation will be cofinancing a P4.8-billion loan for iSON Tower Limited Inc. to construction, development, and operation of 800 shared telecommunication towers in underserved communities nationwide.
“Given the critical infrastructure gap, ADB is very keen to expand its support in the telecom tower sector. Subject to satisfactory completion of due diligence, ADB can consider providing financing to other tower companies that meet its internal criteria, including policy, credit, environmental and social safeguards compliance, and integrity requirements,” Bhattacharya told this newspaper.
The 12-year cofinancing package will be led by ADB, which is providing half of the financing or P2.4 billion and structuring the loans. The other half of the loan financing will be provided by Security Bank Corporation.
The loans will support the construction, development, and operation of 800 shared telecommunication towers. The project aims to mitigate risks related to greenfield financing of telecommunications towers in the Philippines.
ADB said local telecommunication service providers Globe Telecom Inc. and Smart Communications Inc. have master lease agreements signed with iSON.
iSON leases the land, builds the infrastructure, and handles the management, security, and maintenance of these towers.
“Substantial improvements are needed in tower infrastructure to address connectivity gaps and meet the growing demand for reliable and widespread telecommunications services across the country,” Bhattacharya said.
“As of 2022, the telecommunications tower coverage in the Philippines was among the lowest in Southeast Asia, standing at 240 towers per million population. Around 20 percent to 40 percent behind some of its regional peers,” she also said.
In a statement, ADB said smartphone use in the Philippines is among the most widespread in Southeast Asia, but the country has limited tower coverage—with only 240 towers per million population.
In 2019, the Department of Information and Communications Technology (DICT) accelerated the rollout of shared telecom towers by allowing infrastructure companies to build and manage these towers on behalf of mobile network operators.
The shared infrastructure will reduce the mobile network operators’ operational costs, allowing them to focus on providing better services to consumers.
“Expanding and enhancing telecom-munications infrastructure is vital to bridge the digital divide, empower communities, and foster economic growth and development in the Philippines,” said ADB Director General for Private Sector Operations Suzanne Gaboury.
“Shared infrastructure services, like those provided by iSON Tower, will give underserved communities better access to communication, as well as to work in the digital economy, e-health services, access online education, e-government services, and to prepare for disasters.”
ADB said iSON Tower is one of the independent tower companies licensed by the DICT to build and manage telecom towers.
It is a part of the iSON Group, a leading information and communication technology company and an emerging market specialist, with a presence in over 30 countries across Asia, Africa, and the Middle East.
iSON Tower is focused on providing nationwide digital shared infrastructure with a comprehensive portfolio of built-to-suit macro towers, new-gen camouflaged solutions, solar solutions, and small cells, among others.
“Ensuring reliable, quality connectivity is paramount to meeting the constantly evolving digital needs in the Philippines. As part of our dedication to bolstering telecom infrastructure across the Philippines, iSON has made significant investments since 2021,” iSON Tower Founder and Chairman Vivek Gupta said.
“And with the partnership of ADB and Security Bank Corporation, iSON is committed to strengthen the country’s telecom infrastructure landscape for 5G and beyond,” he added.
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