PLDT selling more towers next year

MANILA, Philippines — Integrated telco PLDT Inc. will sell another portfolio of up to 3,000 towers next year as it tightens its belt and streamlines its business to withstand economic risks from here and abroad.

PLDT executives told The STAR that the firm plans to sign sale and leaseback agreements again in 2023 for the transfer of as many as 3,000 assets to tower operators.

PLDT president and CEO Alfred Panlilio said the telco giant would be left with about 3,000 towers to manage once the next batch of passive infrastructure is disposed.

“I think we are looking at another 2,000 to 3,000 towers [for sale]. We foresee that we still get to keep one fourth of the current towers, which means that we would still have another 3,000 that we will continue to operate in strategic locations,” Panlilio said.

Panlilio said PLDT wants to monetize its passive assets not just to raise capital for its expansion projects, but also to lighten its expenses for the coming year. By letting go of the telco towers it no longer needs, PLDT can focus its resources on improving products and services, especially as it expects inflationary and recessionary threats to persist.

“The potential partners that we are talking to for this next round of tower sale can do a better job than us in operating the towers. It lightens the burden on us in operating them. At the same time, we can focus on things where we are better at, like offering solutions services,” Panlilio said.

PLDT chairman Manuel V. Pangilinan said the firm would receive full payment for the first batch of tower assets it sold by next year.

“We have completed the sale of around 75 percent of the first phase. There is still 25 percent to go. It’s not certain that we will complete all of that by yearend. I think some will be closed. Based on our internal estimates, 10 to 20 percent of the 25 percent will be closed. There might be some small  ones left for next year,” Pangilinan said.

In April, PLDT signed a P77 billion deal to sell close to 6,000 passive assets to two foreign tower operators. The first portfolio makes up 2,934 towers and will be issued to EdgePoint subsidiary Comworks Infratech Corp. for P35 billion, while the other batch comprises 2,973 towers and will be transferred to edotco unit ISOC edotco Towers Inc. for P42 billion.

As of October, PLDT has received P57.7 billion from the tower sale. All in all, the Pangilinan-led telco has transferred the ownership of 75 percent or 4,435 of the 5,907 towers covered by the sale and leaseback agreements it entered into.

PLDT said proceeds from the tower sale would be allocated for capital expenditures and operating costs, as well as for debt payments to reduce its obligations, with interest rates rising.

Both Pangilinan and Panlilio expect PLDT’s capex to balloon next year from P89 billion in 2022, as the peso’s decline is forcing the firm to pay more for dollar-denominated payables, including capital equipment.