Telcos should be rent-free like water and power utilities, says expert

MANILA, Philippines – A telecommunications operations expert has said that telco services should be treated with the same rights as water and power utilities, as internet connection in the digital age has “evolved into a human right.”

According to Atty. Froilan Castelo, president of the Philippine Chamber of Telecommunication Operators and general counsel of Globe Group, said that as a lot of day-to-day operations have become digitized, it is only right to give more emphasis to internet connections by removing the leases of telcos on facilities they will use to cater to people and improve their services through the expansion of their infrastructure.

Castelo is echoing the calls and measures of several lawmakers and stakeholders who want to revise the National Building Code of 1977 to remove the lease for telecommunication infrastructure to help telcos get access to cell sites faster.

House Bill Nos. 8534 and 900, which have the same objective, are two measures presented in the House of Representatives that seek to give property developers precise rules and a precise definition for how much space they must set aside to provide essential telecommunication services.

Castelo also said that telcos around the world are starting to get their share of support to eliminate regulatory roadblocks to support their infrastructure and finance builds, and Philippine telcos should have the same, noting that the rentals being paid by telcos are better spent on infrastructure for the expansion of capacity and coverage.

“Telcos around the world are experiencing revenue downtrends, and the Philippine telcos are no exception with low single-digit growths. However, capex and opex continue to rise on this capital-intensive industry and data-hungry customer base, further putting pressure on growth prospects in the coming years. This will create tension and delays in the infra builds that will affect service to the public,” Castelo said, as posted on Insider PH’s website.

2021 data from the National Telecommunications Commission (NTC) showed that there are more than 22,000 cell sites in the country, less than a third of Vietnam’s 90,000, and they are shared between three telcos. The Private Sector Advisory Council (PSAC) proposes 35,000 additional cell sites.

According to the Asian Development Bank (ADB), the Philippines has the lowest coverage rates of telecom towers in the Southeast Asian region and will need an additional 60,000 towers by 2031 in remote areas.

The lawyer also said that eliminating leases for telcos could still be a win-win for both parties, as telcos would still need to invest in digital services like digital parking systems for malls and commercial establishments and digital security for condominiums.

“Thus, developers will not be left empty-handed with the provisions of digital services in store for them. Telcos believe that this will just be a glide-path though, as eventually, both telcos and developers will have to agree to a pure zero-rated hospitality in the latter’s establishments,” he added.

Castelo also said that telcos will eventually bring this to the attention of President Ferdinand Marcos, Jr., who is likely to give his support due to his “digital mindset.”