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The partnership reflects mounting pressure to rein in network costs as fierce competition and low average revenue per user make next-generation infrastructure increasingly expensive to build.
Big picture
The arrangement comes as operators continue investing in 5G networks while preparing for more compute-intensive artificial intelligence services, raising the cost of expanding digital infrastructure.
PLDT Inc., Smart Communications and DITO will exchange access to macro tower sites, in-building telecommunications systems and submarine cable capacity instead of charging one another lease, colocation or capacity fees.
Management’s view
“Connecting the country is a responsibility that we all share as Philippine telcos. This agreement reflects that, even as we compete in the marketplace, we can collaborate where it matters the most: accelerating digital inclusion, helping connect every Filipino, and creating greater opportunities for our people and our nation,” PLDT chair and CEO Manuel V. Pangilinan said in a joint statement on Friday.
“We are here because we have earned the trust and recognition of our peers. DITO stands today as an equal partner—with the credibility, reputation, resources, and capability to help shape the future of the country’s telecommunications industry,” DITO president and CEO Eric R. Alberto said in the same statement.
Beyond towers
Rather than building duplicate facilities, the operators will swap access to existing tower sites, indoor telecommunications infrastructure and submarine cable capacity, allowing them to expand coverage while using capital more efficiently.
The reciprocal arrangement replaces traditional lease, colocation and capacity fees with shared access to existing infrastructure, lowering the cost of expanding their networks.
The agreement is DITO’s first infrastructure-sharing deal with a rival mobile operator, opening a new chapter after five years of building its own network from scratch.
“This agreement reflects how far DITO has come,” Alberto, who previously served as PLDT’s No. 2 executive and chief revenue officer before joining DITO, said in the statement.
DITO’s next phase
The partnership follows DITO’s earlier fiber-sharing agreement with Converge ICT Solutions, extending the company’s use of shared infrastructure beyond fixed networks into mobile assets.
Infrastructure sharing has become increasingly common across Asia as telecommunications operators seek to reduce duplicated capital spending and free up investment for increasingly expensive 5G and future AI-ready networks.
—Edited by Miguel R. Camus
