DICT signs memo with China Energy on common telecom towers

The Department of Information and Communications Technology (DICT) on Friday signed a memorandum of understanding (MOU) to give a Chinese energy conglomerate the support it needs as  a common telecom tower provider in the Philippines.

DICT commits to facilitate permits, right of way, and other government support in favor of China Energy Equipment Co. Ltd. (CEEC) once the company secures a contract to build with any telco operator.

Acting Communications and Technology Secretary Eliseo Rio Jr. noted that the country needs around 50,000 more cell sites for the telcos to provide adequate service nationwide.

The Chinese company is yet to discuss the definite number of towers it plans to build.

In terms of capability, CEEC vice president Huang Fei said they have “no problem” in building the 50,000 towers envisioned by DICT.

Based on DICT’s target, Fei said they are willing to invest up to $4.4 billion to build telcom towers in the Philippines.

The government is bent on implementing a “common tower” policy which is envisioned to reduce the cost of telecommunications services by freeing telcos from costly expenditures in constructing communication towers. Eventually, the hope is to reduce the cost of telecom services.

The common towers will be shared by telco operators PLDT Inc. and Globe Telecom Inc. as well as the third telco player.

To have a faster rollout under the initiative, DICT is entering agreements with six telecommunications tower builders:

CEEC (China)
IHS Towers (Independent)
edotco Group (Malaysia)
American Towers (United States)
ISON ECP Tower Pte. Ltd. (Singapore)
ISOC Infrastructures Inc. (Philippines)

The CEEC is the fifth company to sign an MOU with DICT.

Memos with ISOC and ISON were signed last December, while IHS Towers and Malaysia’s edotco got their commitment of support from DICT on Thursday.

China Energy conveyed its intent to join accelerated common tower rollout plan in May 2018.

Rio earlier said that American Towers has signified intention to join the roster and will likely sign an agreement with DICT sometime next week. —VDS, GMA News