Globe Telecom Enhances CapEx with P1.56 Billion Tower Sales Revenue

Globe Telecom Inc., a major player in the Philippine telecommunications sector, has successfully raised P1.56 billion from its latest transaction involving the sale of tower assets to Frontier Tower Associates Philippines and Unity Digital Infrastructure. This move is part of the company’s strategy to bolster its capital expenditure funding.

The Ayala-led telecom firm completed the transfer of 91 towers to Frontier Towers for P1.16 billion, as part of a larger deal involving 3,529 towers sold in August 2022 for P45 billion. To date, approximately 65% of these assets have been handed over to Frontier Towers.

Additionally, Globe Telecom garnered P396 million from the sale of 33 towers to Unity Digital Infrastructure, following a P5.4 billion agreement for 447 towers in May 2023, with 63% of the assets already transferred.

These transactions are in line with the government’s tower-sharing initiative, aimed at enhancing connectivity nationwide. Tower-sharing allows telecom operators to lease infrastructure, reducing the need to construct new facilities and enabling cost-effective network expansion.

The sales are part of Globe’s broader strategy to liquidate non-core assets, thus freeing up capital for its extensive capital expenditure program. The company has earmarked a $1 billion capital expenditure budget for the year, funded through internal cash flow, tower sales proceeds, and debt financing, with a goal to reduce spending to below $1 billion by 2025.

Over the past year, Globe has invested heavily in expanding its network, building new cell sites, upgrading existing ones, and rolling out 5G technology across the Philippines. This aggressive infrastructure development underscores Globe’s commitment to improving connectivity and service quality for its customers.