DICT assures 3rd telco legal issues unlikely to affect common towers

MANILA, Philippines — The Department of Information and Communications Technology (DICT) has assured that its plan to accelerate the construction of more telecommunications infrastructure will push through regardless of the outcome of the investigation on the franchise validity of the country’s third telco player.

Information and Communications Technology Acting Secretary Eliseo Rio said the ongoing debate on the new major player’s franchise validity would not hinder the government’s common tower program.

“We will go ahead with the common tower initiative even if we have only two telcos because the fact remains that we still need an additional 50,000 towers to improve our connectivity,” Rio said.

“Common towers can bring down the cost of our telecommunication services so there is definitely a need for this initiative, whether we have two or three or even four telcos,” he said.

Rio’s statement came on the heels of the pending Senate Committee on Public Service resolution that will determine if Mindanao Islamic Telephone Co. Inc., the franchise holder of the consortium declared as the new major player, can get the Congress’ approval regarding its request to grant the transfer of controlling interests.

Calling it as DICT’s biggest Build Build Build project, the common tower initiative is expected to attract at least $4.4 billion in investment and will create thousands of jobs, according to Rio.

The DICT has so far signed memoranda of understanding with six common tower providers which include  ISOC Infrastructures Inc., a company chaired by Megawide Construction Corp. co-founder Michael Cosiquien, ISON ECP Tower Singapore Pte. Ltd., Edotco Group Sdn Bhd and RT Telecom Sdn Bhd of Malaysia, IHS Towers of Nigeria and China Energy Equipment Co. Ltd.

Rio said two to three more tower companies have expressed interest to follow suit in signing the same agreement.

The government said the Philippines needs around 50,000 tower locations to adequately service the country, as Globe and Smart have managed to built only 16,000 towers over the past 20 years.

Senate Minority Leader Franklin Drilon pointed out during previos Senate committee on public services’ hearings that Mislatel’s franchise is “deemed revoked” as it violated the conditions of its privilege for failing to continuously operate a year after securing Congressional approval of its franchise in 1998.