IFC pours in $8.3 million to boost Philippine digital infrastructure

MANILA, Philippines — The private sector arm of the World Bank Group is providing $8.3 million to a telecommunications tower infrastructure company that will improve digital developments in the Philippines.

The International Finance Corp. (IFC) of the World Bank Group has placed an indirect equity investment in EdgePoint Infrastructure, a telecom tower infrastructure company that expands connectivity solutions across Southeast Asia.

EdgePoint operates in Indonesia and Malaysia. Its next target is to enter the growing tower market in the Philippines and improve mobile connectivity for people and businesses.

IFC’s investment in EdgePoint will increase mobile network capacity and create a competitive market for tower collocations in the country.

“This equity investment in EdgePoint marks a significant milestone in digital development in the Philippines, paving the way for more people and businesses to have access to mobile services,” IFC-Asia Pacific regional industry director for Infrastructure Isabel Chatterton said.

Chatterton said strong consumer demand and a vibrant labor market in the country would lead to greater calls on telecom services.

IFC’s investment in EdgePoint is part of a larger investment in digital infrastructure assets across emerging markets managed by affiliates of DigitalBridge Group Inc., a leading global digital infrastructure investment firm.

IFC’s investment involves the acquisition of more than 2,900 towers from telco giant PLDT Inc. through a sale-leaseback transaction and the construction of additional new build-to-suit towers.

The quality of mobile connectivity in the Philippines remains lacking due to pervasive network congestion.

The number of mobile subscribers per tower—a measure of network congestion—is comparable to that of low-income countries and more than three times above the average of countries in the East Asia and Pacific region.

Such capacity challenges are compounded by limited access to reliable electricity for mobile towers—an estimated five percent of towers in the Philippines are expected to be located in off-grid areas.

“EdgePoint is committed to building a world-class operation to expand next-generation connectivity solutions, bridging the digital divide in the Philippines and creating new job opportunities in the sector. The Philippine telecoms sector has tremendous potential,” EdgePoint founder and chief executive officer Suresh Sidhu said.

The country’s tower market is now attracting multiple global and regional players. IFC’s investment is seen increasing competition within the telecom sector, which will lead to better service quality and more affordable rates.