On Thursday, the Ayala Group’s telecom arm closed a deal involving 1,037 tower sites for ₱13.17 billion. The towers are 84 percent ground-based and 16 percent rooftop. This finalizes Globe’s sale of 3,529 towers to KKR-backed Frontier Towers since 2022.
“This transaction provides us with a higher level of financial flexibility to manage our leverage ratios and effectively address the evolving consumer demands while ensuring sustainable network expansion,” said Globe chief finance officer, Rizza Maniego-Eala.
New milestone
Globe continues to use rented towers through leaseback agreements, making spending more efficient. Overall, the company has transferred 6,628 out of 7,506 towers, generating ₱85.2 billion in total proceeds.
“We firmly believe that our strategic partnerships with the towercos are pivotal in this competitive market landscape,” Globe CEO Ernest Cu said.
Aggressive expansion
Frontier Towers is one of the country’s largest operators of common towers, which are independent structures that telcos rent for their equipment.
Independent tower operators have revolutionized the industry by replacing the previous practice where each telecom company had to build, maintain, and operate its own cell sites.
“We are pleased to have reached this key milestone in our strategic partnership with Globe. With this latest closing, we near the 5,000 tower mark and cement our position as the largest digital infrastructure provider in the Philippines,” said Patrick Tangney, chair and CEO of Frontier Towers.
