Liquidation of Tower Assets
With the recent changes to the telecommunications framework, including the amendment to the PSA and the issuance of DICT Department Circular No. 01-2022, interest in cellular tower assets in the Philippines from domestic and international tower companies has significantly grown. In 2022, major PTEs, such as Globe Telecom, Inc. and Smart Communications, Inc., have opted to monetize their tower assets, selling around 13,000 towers to independent tower companies. Some of these agreements also include provisions for the construction and operation of build-to-suit cellular towers.
Rise of Data Centers
The COVID-19 pandemic highlighted the growing need for data centers across the globe. The Philippines — with its 76-million strong internet user base and growing consumption of tech-delivered content, social media, and e-commerce — has attracted key players in the data center platform industry. Investment in data infrastructure is expected to increase, with data centers in Mandaue City, Pasig City, Manila City, Cainta, Rizal, and Batangas Province set to rise in the next five years. The Philippines’ data center capacity is projected to expand from its current estimated 96-megawatt capacity to around 300-megawatts by 2032 or earlier.
Read the latest SyCipLaw TMT and Data Bulletin here or via this link.