First published in InfraTalks, Aboitiz InfraCapital’s monthly column in The Manila Times.
In today’s fast-paced digital economy, connectivity is not just an advantage—it is a necessity. The rise of digital transformation has made it imperative for mobile network operators (MNOs) to expand their coverage, enhance network capacity, and improve service quality at unprecedented speeds.
However, the traditional model of building individual, stand-alone telecommunications (telecom) towers is costly, inefficient and unsustainable. In May 2020, the Department of Information and Communications Technology issued policy guidelines on the colocation and sharing of telecom towers, ushering in a solution that has proven effective in driving cost efficiency and accelerating digital inclusion in other countries.
Colocation on common towers is proving to be a valuable solution in unlocking a more connected and digitally empowered Philippines. By enabling multiple MNOs such as Globe, Smart, and DITO to share a single tower, resources are optimized and network rollouts are expedited — bringing high-quality connectivity from various providers to more Filipinos faster than ever before.
In a country like the Philippines, where geography and regulatory processes often pose challenges to network expansion, colocation presents a clear path forward.
One of the most compelling advantages of colocation is efficiency. Rather than building their own passive infrastructures that are duplicate or redundant, MNOs can instead opt to use existing common towers to install their equipment on and have them on air faster. This minimizes land use and reduces environmental impact—an increasingly important consideration as the industry moves toward sustainable practices. In line with the rise of green technology in telecommunications, common towers mean fewer materials, lower energy consumption, and a smaller carbon footprint.
A Body of European Regulators for Electronic Communications Report on Infrastructure Sharing highlights that shared telecom infrastructure can reduce capital and operating expenditures by an estimated 35 percent. Indeed, cost reduction is a game-changer for MNOs. By sharing infrastructure, MNOs significantly cut down their investment and operational costs, allowing them to allocate more resources toward equipment upgrades, service enhancements and customer experience improvements. It also levels the playing field for both established and emerging players, fostering a competitive landscape that ultimately benefits consumers.
Finally, deployment speed is a critical factor in digital transformation. As demand for mobile data continues to surge—driven by remote work, e-commerce and digital services—MNOs must expand their networks quickly to meet user needs. Colocation eliminates the delays associated with individual tower builds, allowing MNOs to scale up operations swiftly and efficiently.
In the past two years, Globe and Smart have sold a substantial number of their telecom towers to independent tower companies, including Unity Digital Infrastructure Inc., a joint venture between Aboitiz InfraCapital and leading global private markets firm Partners Group.
As an independent tower company, Unity builds, owns, operates and maintains passive telecommunications tower infrastructures that cater to multiple MNOs. With its acquisition of telecom towers from Smart and Globe, Unity’s portfolio of colocation-ready common towers across key locations in the Philippines continues to grow and ensure that MNOs, including new players like DITO, can rapidly expand their footprint without the burden of high capital investments.
As demand for 5G, IoT (Internet of Things), and next-generation digital services continues to rise, the industry must move away from siloed operations and embrace shared infrastructure as the new standard. Government regulators must also play a vital role in supporting policies that incentivize colocation and streamline the permitting process for common towers.
At Unity, we are committed to leading this transformation. Together, we can build a future where digital inclusion is not just a goal but a reality for all.
