Gov’t to implement ‘common tower’ policy

To free telecommunications company from costly capital expenditures in constructing communication towers and eventually reduce the cost of their services, the Duterte administration is set to rollout a "common tower" policy.

Under the "common tower" policy telecommunications companies will no longer be allowed to build communication towers or cell sites  but instead lease the structures from a tower company, Presidential Adviser on Economic Affairs and Information Technology Communications Ramon Jacinto told reporters at a press conference on Friday.

Jacinto clarified that telcos PLDT and Globe may still keep their existing cell sites even after the policy has been enforced.

He added that the policy will be in effect once the common towers are in place.

"We'll allow them to keep them. But any future applications to build towers once this is in place... Once this is in place, any future radios for cell sites, for telecom will have to be located in the common tower. It will be mandatory," Jacinto said.

"Next month, we will rollout the guidelines... The actual implementation is early next year," the official said, noting that the timeline is a "conservative" estimate.

Jacinto said the Philippines needs around 50,000 cell sites to provide adequate service across the country.

In terms of the number of cell sites, the Philippines lags behind other neighboring countries with only 16,000 towers compared to Malaysia and Indonesia's 25,000 and 90,000 towers, respectively.

"But if you analyze it, most of them are duplications so we only have 8,000 sites. In Indonesia, they have 90,000 towers for 250 million. We are 106 million, we should have about 50,000 towers," Jacinto said.

The construction of cell sites will be handled over to the private sector at no cost to the government, he said.

He said that policy is a "win-win" solution since it will free telcos from costly operating expenses and hindrances in building cell sites, including the obtaining of permits, land, and maintaining the structures.

"Initially they may be shocked by this policy, I think they know that they will appreciate this later on because they will be able to free the capital expense and the headache of building towers and concentrate on operations and updating their radios to provide radio service," Jacinto said.

This may eventually lead to lower cost of services by the telcos passed on to end-consumers, he added.

Apart from lowering the cost of telecommunication services, the setting up of common towers will encourage more players since it will pave the way for a "level-playing field" since big and small operators will be able to easily locate the towers, the official said.

"So this also paves the way for a level playing field for the third player," he said.

Jacinto said American Tower has already expressed interest in building the common towers.

"We're looking at about three or four players to build this, but if one player can do it, why not? They'll finance it. It's gonna be a private endeavor. The government will have the option to buy shares, if that's the policy," he said.

A common tower has a capacity to accommodate three to four operators and costs around $70,000 to $100,000, according to Jacinto.

"We will consult with the industry also on the locations that they suggest because they have to be happy also with the locations, the topographical features of the country will have to be taken into consideration," Jacinto said.

"We will pinpoint the location and then ask them to agree. If they have any objections, they can voice it out to the exact location, they can voice out and suggest, maybe you should put it over there, we will take them into consideration," he added. — MDM, GMA News