Cell tower. – Globe Telecom Inc.’s P5.4-billion tower sale and leaseback deal with Aboitiz-backed Unity Digital Infrastructure is nearing the conclusion following another closing round, cashing in P228 million. CONTRIBUTED PHOTO
Globe Telecom Inc.’s P5.4-billion tower sale and leaseback deal with Aboitiz-backed Unity Digital Infrastructure is nearing the conclusion following another closing round, cashing in P228 million.
In a disclosure on Friday, the Ayala-led company said they had concluded the sixth closing, transferring 19 towers to Unity.
Article continues after this advertisementIn all, Globe has turned over 326 out of the 447 towers sold in May 2023.
FEATURED STORIES BUSINESS Percentage of Filipinos with savings dips to over 3-year low BUSINESS Trump threatens tariffs if EU doesn't buy more oil, gas BUSINESS ICTSI earmarks $100M for expansion of Mindanao portThis is just one of the company’s several tower sale deals. Globe sold a total of 7,506 tower assets for P96.4 billion to several tower companies.
The sale and leaseback of tower assets are also in line with the government’s tower-sharing initiative, which seeks to beef up connectivity across the country.
Article continues after this advertisementREAD: Globe earns P300 million from tower sale
Article continues after this advertisementTower-sharing enables operators to expand their footprint across the country without putting up more facilities, which can also be cost-effective for them. Instead, operators will lease the towers from the independent tower companies that allow multiple users at a time
Article continues after this advertisementA 2022 study by independent tower company Edotco Group and management consultancy firm Roland Berger estimated that local telco players could save up to $1.15 billion in capital and operational expenditures until 2025 through tower-sharing.
Proceeds from the tower sale will fund its expansion and debt payments.
Article continues after this advertisementGlobe has set its capital expenditure guidance at $1 billion this year, which will be funded via internal cash flow, proceeds from tower sales and debts. By 2025, the company targets to cut down spending to below $1 billion.
READ: Globe, Frontier Tower soon to wrap up P45-billion deal
The one-year Loan Prime Rate (LPR), which constitutes the benchmark for the most advantageous rates lenders can offer to businesses and households, was cut from 3.35 percent to 3.1.
The High Court in London will examine over several months whether BHP was partly liable for the 2015 collapse of a dam at a mining waste site in Brazil.
winstar4d slotThe telco giant spent P41 billion in capital expenditures in January to September to fund the expansion of its telco infrastructure. It built 684 new cell sites and upgraded 2,723 existing mobile sites.
Globe also deployed an additional 378 5G sites. As a result, the 5G coverage in the National Capital Region has reached 98.51 percent. 5G, which enables faster internet connection, is also now available in 94.91 percent of key cities in the Visayas and Mindanao.
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The company saw its nine-month net income grow by 6 percent to P20.6 billionubet95, thanks to total revenues growing by 2 percent to P124 billion. The earnings were driven by mobile data revenues rising by 9 percent to P72.9 billion as Filipinos increasingly use their cellphones to access the internet.
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