September 17, 2024 | 12:00am
MANILA, Philippines — Telco infrastructure operators have formed a joint venture to create one of the largest players in tower management in the Philippines and support the asset needs of mobile networks.
MIESCOR Infrastructure Development Corp. (MIDC) yesterday announced the completion of its joint venture with PhilTower Consortium Inc. to form an independent tower company, potentially the biggest in the industry to date.
The resulting company from the deal will be owned by a group of local and foreign investors that include MIDC’s current backers Meralco Industrial Engineering Services Corp. (MIESCOR) and Stonepeak.
Apart from this, the new tower operator will be funded by Global Networks Inc. and Macquarie Capital. MIDC has yet to declare the name of the company that it minted with PhilTower.
The joint venture company is expected to play a crucial role in speeding up digital adoption, as it will build traditional infrastructure to connect consumers to the internet. Similarly, it will hop on the wireless train to cater to the emerging demand from mobile providers Smart Communications Inc., Globe Telecom Inc. and Dito Telecommunity Corp.
MIESCOR president and CEO Richard Ochava said the joint venture hopes to bridge the socioeconomic divide by providing equal access for everyone to connectivity services.
“By combining the strengths of the two organizations (MIDC and PhilTower), we are creating a new standard for infrastructure efficiency and service excellence, bringing us closer to achieving nationwide connectivity,” Ochava said.
“This move will not only improve network coverage and ICT (information and communications technology) services, but also has a broader impact in the country’s socioeconomic development by fostering digital inclusion and empowerment, especially in underserved areas,” he added.
Both MIDC and PhilTower are buyers in the largest tower disposal in Philippine history, that of Globe’s, amounting to P96.4 billion. In 2022, MIDC purchased 2,180 towers from Globe for P26 billion, and PhilTower followed this up by acquiring 1,350 for P20 billion.
MIDC, a unit of Manila Electric Co., offers infrastructure services to telco players. The company builds, operates and maintains tower sites and wireless systems critical to connecting consumers to the internet.
PhilTower manages telco facilities across Southeast Asia, handling accounts in the Philippines, Indonesia, Malaysia and Myanmar.
Based on recent data, both MIDC and PhilTower maintain around 1,250 towers each, but MIDC is concentrated in Luzon while PhilTower has its assets scattered across the archipelago.
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