For many, it was quite a surprise that PLDT was selling off Smart and Sun Cellular towers to 3rd-party tower companies. The move seemed a bit off considering that, for the past several years, one of the biggest problems why mobile connectivity is still a huge concern among consumers in the Philippines and that is because the number of cell towers isn’t enough to properly cover the entire archipelago.
So why is PLDT selling off their towers? Here are some possible explanations.
- PLDT included in the sale agreement that they will be leasing these very same cell towers from the new owners. That means whatever network coverage they had in these areas will continue to be served even after the sale.
- PLDT can use the Php77 billion funds they’ll get from the towers to build newer ones in areas that have little to no network coverage. No need to borrow new capital for expansion. OR, they could partially pay off some of their debts from previous capital expenditures.
- Leasing cell towers can be less expensive in the long run since there will be no more maintenance costs associated with exclusively operating one.
- Faster network roll-out. Combining self-operated and leased cell towers can fast-track the network expansion.
- With leased towers, no more headaches from 29 to 35 documentary requirements and permits associated with building a new tower (although in September 2020, these were all reduced to 1 permit 10).
In a way, this is a smart move for PLDT. Even Globe telecom is doing the same thing. The more 3rd-party tower operators we have, the faster the roll-out of network and service coverage.
I want to lend my lot to you company