Globe gains ground in convincing developers to end in-building lease fees

Globe President and CEO Ernest Cu’s campaign to eliminate lease fees for in-building telecom facilities, putting these on par with water and power utilities, is gaining momentum as more developers agree to the change.

“We have made some progress along these lines, getting a number of developers to already agree on this concept,” Cu said in a statement over the weekend. 

“We’re just glad to report things are moving and moving in the right direction,” he added.

Lower costs for better services 

Unlike water and power utilities, telecom services are burdened with leases and access fees, Cu said.

He explained these costs hinder efforts to expand connectivity, considered a basic necessity. 

Ernest Cu 
​Globe ​Telecom ​CEO 

Success in other jurisdictions 

Globe also noted the region’s shifting policies, where zero lease fees are being gradually implemented.

“For instance, property developers in Australia are responsible for arranging and financing pit and pipe infrastructure, ensuring that telecom services are in place when new properties are occupied,” the company said.

“In Singapore and Hong Kong, building owners and developers are required to provide space and access for telecom licensees without imposing additional costs, a policy that underscores the mutual benefits for both the buildings and their tenants, creating a win-win situation,” it added.

Updating the National Building Code 

Meanwhile, Globe said it is working with property developers and the government “to align priorities for connectivity by encouraging them to remove lease fees for in-building solutions.”

Globe will also back bills that aim to update the National Building Code and recognize connectivity as a basic necessity.

About the author
Miguel R. Camus
Miguel R. Camus

Miguel R. Camus has been a reporter covering various domestic business topics since 2009.

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