What's Happening?
Globe Telecom, the largest mobile network operator in the Philippines, is nearing the completion of its tower sale-and-leaseback strategy. Over the past three years, Globe has transferred ownership of nearly 7,000 towers, raising PHP89.3 billion ($1.5 billion) in proceeds. The latest transactions include the sale of 12 ground-based towers in Luzon to MIESCOR Infrastructure Development Corporation for PHP144 million, and 84 towers in the Visayas and Mindanao regions to PhilTower Consortium for PHP1.2 billion. This initiative, launched in 2022, aims to reduce maturing debt and strengthen Globe's financial position. Globe's CFO, Carlos Puno, stated that the substantial handover of sites enhances the company's flexibility to manage liabilities and allocate capital effectively, supporting investments in essential infrastructure and digital platforms.
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Why It's Important?
The tower divestment strategy is crucial for Globe Telecom as it seeks to enhance capital efficiency and reduce liabilities. By monetizing its tower assets, Globe can focus on expanding its digital infrastructure and 5G network, which is vital for maintaining competitiveness in the telecommunications industry. The proceeds from these sales provide Globe with the financial resources needed to invest in future growth and technological advancements. This move positions Globe as a more agile and capital-efficient operator, ready to meet the increasing demand for high-speed connectivity and digital services in the Philippines.
What's Next?
Globe Telecom plans to continue its expansion of the 5G network infrastructure, which has already covered 98.71% of Metro Manila and 97.97% of major cities in the Visayas and Mindanao. The company aims to further enhance its network capabilities by adding new 5G sites and serving more 5G-enabled devices. Additionally, Globe's partnership with Nokia for deploying modular Interleaved Passive Active Antenna (IPAA+) solutions will accelerate 5G deployment across the southern islands of the Philippines. These efforts are expected to support Globe's long-term growth and technological evolution.
