SEC OKs Globe’s tower company

MANILA, Philippines — Globe Telecom Inc. has secured the corporate regulator’s nod for the incorporation of a separate tower holding company in line with efforts to divest its tower assets and continuously improve internet connectivity in the country.

The Ayala-led telco giant has received the approval of the Securities and Exchange Commission (SEC) on the incorporation of GTowers Inc.

“The establishment of a tower company will help speed up the building and deployment of cellular towers in the country,” Globe said.

Globe announced last month that its board of directors approved the creation of a separate tower holding company and started with the process of incorporation.

As soon as it gets the approval from the SEC, Globe said it would operationalize the divestment of all or part of its tower assets through a separate company. 

With the proposed tower holding company, the firm said any player can do outright lease of the towers using standard and non-discriminatory commercial terms.

“As a major industry player, we understand what this country needs to improve the internet experience of our customers. Putting up more towers based on global standards within strategic areas will make spectrum use more efficient. We should work together and find all means to supplement the build for towers – either through telcos or tower companies. This in turn will bring us closer to first world internet connectivity,” Globe president and CEO Ernest Cu said in a statement.

Globe has been pushing for the establishment of tower companies similar to those found in other developed countries.

Cu said the initiative would help accelerate the deployment of more cellular towers in the Philippines and foster competition.

The lack of cellular towers, he said, has long been identified as the greatest barrier to seamless mobile internet connectivity with no viable short term solution due to permitting issues.

“We remain open to collaborate with new and existing players in the interest of national development,” Cu said.

Globe said the Philippines has one of the lowest tower densities in the world with under 20,000 towers serving 100 million people.

It said approximately 50,000 more towers should be built in order to serve current voice and data traffic that continuously grows exponentially every year.