Globe Telecom’s tower revenue reaches P85.2 billion

AYALA-LED Globe Telecom, Inc. said it has generated P85.2 billion from the tower sale after fully transferring part of its tower assets to Frontier Tower Associates Philippines, Inc. (Frontier Towers).

“These tower assets consist of 84% ground-based towers and 16% rooftop towers,” Globe said in a stock exchange listing on Thursday.

The telco has completed the sale of 1,037 towers worth P13.17 billion, marking the completion of 3,529 towers to be acquired by Frontier Towers.

“This transaction provides us with a higher level of financial flexibility to manage our leverage ratios and effectively respond to changing consumer demands while ensuring sustainable network expansion,” Globe Chief Finance Officer Rizza Maniego-Eala said in a statement .

In total, Globe transferred 6,628 towers, raising a total of P85.2 billion, out of the 7,506 towers slated for the sale-and-leaseback arrangement.

“Our strong commitment to fostering collaborative partnerships is exemplified by the full transfer of towers sold to Frontier Towers. We believe that our strategic partnerships with tower companies are critical in this competitive market landscape,” said Globe President Ernest L. Cu.

Patrick Tangney, chairman and CEO of Frontier Towers, said the completion of the tower sale will allow the company to expand its network in the Philippines and further enhance its capacity to provide digital connectivity.

“With this latest closure, we are approaching the 5,000 tower milestone and solidifying our position as the largest digital infrastructure provider in the Philippines,” said Mr. Tangney.

Frontier Towers is an independent tower company focused on building and operating telecommunications infrastructure, including towers and related assets.

In 2022, Globe signed agreements with MIESCOR Infrastructure Development Corp. (MIDC) and Frontier Towers for the sale of 5,709 telecommunications towers and associated passive infrastructure for approximately P71 billion.

Frontier Towers will acquire a total of 3,529 towers for P45 billion, while MIDC will acquire 2,180 towers for P26 billion.

The same year, it also signed an agreement with PhilTower Consortium, Inc. (PhilTower) for the telecom company’s 1,350 towers.

Proceeds from this transaction will fund Globe’s capital investments, debt repayments and improve its balance sheet, the company said.

At the stock market, shares in the company rose P14, or 0.67%, to close at P2,114 each. – Ashley Erika O. Jose