Powering Cell Tower Infrastructure in the Philippines IN ASSOCIATION WITH
PHILTOWER CONSORTIUM
DIGITAL REPORT 2020
Powering Cell Tower Infrastructure in the Philippines 133
DECEMBER 2020
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PhilTower Consortium Chief Operating Officer Rodrigo Araujo is at the forefront of a new industry as it plans a rapid roll-out of cell towers in the Philippines
R
odrigo Araujo, the Chief Operating Officer for PhilTower Consortium, has dialled in from Phnom Penh for our Zoom meeting
and the connection is so clear he could be in the 135
next room. The ease of connectivity seems appropriate for a man who has bold plans to revolutionise Philippines’ cell tower infrastructure. PhilTower Consortium, which launched late 2019, is one of the first incorporated ITCs in the country. The consortium has a group of international private investors, which specialises in integrated niche infrastructure. The opportunity is self-evident; the Philippines currently has around 16,000 cell towers for a country of 100 million people. Yet on a whole host of fronts – from sites and capacity, to coverage and quality – the industry has come up short. “There’s a lot of pressure on operators to improve capacity, especially with the Pandemic,” says Araujo.
DECEMBER 2020
2019
Year founded
500+ Number of employees
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Whereas in the past the pace
telecommunications, based on the
of change was slow, now there is
IMD World Digital Competitiveness
clear impetus from the government
Rankings of 2020, but that may be
and Department of Information and
because it lags on several key metrics
Communications Technology (DICT),
(58 for internet users, 61 for internet
which issued provisional certificates
bandwidth speeds and 62 for commu-
to 23 tower companies in September,
nications technology).
allowing them to own, construct, man-
Undoubtedly, there is now clear
age and operate common towers
momentum and optimism, and for
hosting cellular sites.
all the challenges associated with
The Philippines has broken into the
COVID-19, it has provided Araujo and
Top 10 countries for investments in
his team with time to develop its supply
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“ It’s a new business and industry, and the project planning is in place” — Rodrigo Araujo, Chief Operating Officer, PhilTower Consortium
DECEMBER 2020
E X E C U T I V E PR O FILE :
Rodrigo Araujo Title: Chief Operating Officer
Company: PhilTower Consortium
Industry: Cell Tower infrastructure Location: Philippines Rodrigo Araujo works with provincial governments and courts partnerships with the Commission of Higher Education (CHED), such as its Smart University and Cities initiatives, to drive innovation and future growth, and supports Secretary Gregorio Honasan in pushing more fair and modern ITC regulations to accelerate the country’s telecom industry. “Our business philosophy is that we should not only be contributing to the development of the industry but also add value to society,” he says. “ I see myself as the client’s ambassador. I align local needs with anticipation of technology trends in or meet client’s expectation with future proof infrastructure and services. I am hands on, work for the team and lead by example by focusing on delivering what was committed.” He is very protective of the financial stakeholder’s interests, providing comfort and trust so they can be sure that their investments will be maximised and yield strong returns. “ I see ourselves as catalysts, integrating several different technologies in order to meet our client’s demands and provide them future proof solutions that can support their growth and evolution. “ I work closely with our Strategic Partners, interpreting the local industry’s need and translating them into meaningful solutions for our clients and stakeholders. These solutions become the foundations for our success of our delivery to our clients.” “ Human Capital is absolutely paramount, he concludes. Powerful tools and detailed processes will not generate real value without committed people behind them.”
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PHILTOWER CONSORTIUM
“ The Philippines is the most promising as it has immediate demand” — Rodrigo Araujo, Chief Operating Officer, PhilTower Consortium
chain and business partners. Together with GSM Towers, there has been a 139
lot of work customizing new structure concepts to fit into Philippines standards and requirements and support the high demand of the operators.
Anything up to 50,000 new common
Also, due to the necessity of working
towers could spring up across the
remotely, new tools have been put in
country in the next seven to 10 years,
place, such as automated project man-
according to regional reports. Telcos
agement and development of AI based
may select from the 2,500 sites made
asset control.
available by DICT and contract any
“It’s a new business and industry,” he
of the common tower companies that
continues. “The project planning is in
have signed an MOU with the DICT to
place. There was a lot of work by oper-
put up a cell site infrastructure to be
ators and the government to provide
shared with other telcos and inter-
1,500 permits in a matter of weeks.
ested stakeholders.
The service issues can be minimised
Besides of being used to the usual
and the pace can increase further by
‘high tower approach’, PhilTower
the common towers approach.”
Consortium will focus on small cells,
DECEMBER 2020
he added, and is “close” to signing contracts with Smart Communications and Globe Telecom and is in talks with a third operator, Dito Telecommunity; the latter claims to have completed 1,532 cell towers nationwide and is confident of covering about a third of the population with mobile signals ahead of its January 2021 technical audit. “We are one of the first on the ground and expect a few hundred sites until end of 2021 and growing rapidly to a few thousands afterwards,” he said. The ingenious part is the “street furniture”, as he describes it, with
IMD 2020 Digital Competitiveness Ranking CLICK TO WATCH
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1:50
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“ We expect a few hundred sites until the end of 2021 and growing rapidly to a few thousands afterwards” — Rodrigo Araujo, Chief Operating Officer, PhilTower Consortium
curve. There will be increased efficiencies of CAPEX and reduced costs for
cells able to be erected quickly and efficiently in electricity-style poles,
operators,” said Araujo. The impetus coincides with the ubiq-
with the technology embedded within,
uitous push towards 5G and demand
minimsing their impact to local com-
for new apps and revenue streams.
munities. He said they can go up in one
“2G is moving out, there will still be
week, around five less than it takes to
demand for 3G for the next five years
erect a conventional cell tower.
and 4G will be the main tech,” Araujo
For population-dense cities such as Manila – the principal initial focus, along with Luzon Islands, although Mynamar, Malaysia and Indonesia are also in his sights – this is a huge benefit and offers the added benefit of circumventing site acquisition and permitting challenges that accompany larger installations. “The Philippines is the most promising as it has immediate demand. The new infrastructure is highly optimised. Operators are still understanding the benefits and there will be a lot of ongoing talks with vendors – it’s a learning busi ne ssc hi ef . a s ia
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PHILTOWER CONSORTIUM
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“ Our business philosophy is that we should not only be contributing to the development of the industry but also value to society” — Rodrigo Araujo, Chief Operating Officer, PhilTower Consortium DECEMBER 2020
adds. “The average costs of MBs will reduce and consumers will have much more capacity. I believe that we can expect something around 25 to 30 per cent of the population having 5G coverage by 2025.” Telecommunications and digital services provider PLDT recently announced it is poised to ramp up its capital spending in the “foreseeable future”, as it expands its network and 5G roll-out.
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Alongside the commercial drive,
“Our business philosophy is that we
Araujo says it is working with provincial
should not only be contributing to the
governments and courting partner-
development of the industry but also
ships with the Commission of Higher
value to society,” Araujo concludes.
Education (CHED), such as its Smart University and Cities initiatives, to drive innovation and future growth, and supporting Secretary Gregorio Honasan – who has been extremely active – in pushing more fair and modern ITC regulations to accelerate the country’s telecom industry. busi ne ssc hi ef . a s ia
PHILTOWER CONSORTIUM UNIT S-08 35TH FLOOR ECO TOWER BLDG. 32ND COR. 9TH AVENUE BGC FORT BONIFACIO TAGUIG CITY METRO MANILA T +63 2883 6061
rodrigo@philtower.net
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