Globe advocates for no lease fees in telco sector

Globe, a leading telecommunications provider, is advocating for the removal of lease fees for telecommunication infrastructure in property developments in the Philippines, a move inspired by successful practices across Asia-Pacific regions such as Australia, Singapore, and Hong Kong.

This initiative aims to lower operational costs for telecom companies and stimulate a more competitive market, ultimately leading to improved services and connectivity for consumers.

Globe’s President and CEO, Ernest Cu, remarked on the positive outcomes seen in other countries, “The experiences of Australia, Singapore, and Hong Kong demonstrate that zero lease practices for telco infrastructure can lead to more efficient market operations and better consumer services.”

In Australia, developers are required to cover the costs of necessary pit and pipe infrastructure for new buildings. Singapore’s COPIF mandates free space and access for telecom infrastructure in buildings, supporting robust telecom services essential for the digital economy.

Hong Kong’s regulations demand that building owners accommodate telecom installations, which has significantly bolstered the city’s mobile network and services.

Cu emphasized the benefits of such policies for the Philippines, saying they would enhance the nation’s digital connectivity and regional competitiveness.

Currently, real property developers and owners of buildings such as malls, office spaces, hotels and condos, charge telcos for installing in-building telco infrastructure to provide necessary connectivity within their own premises.

Globe believes such fees are unnecessary and that telco facilities must be treated the same as water and power, for which developers already provide necessary space without charging lease to service providers.

It supports the revision of the National Building Code to classify telcos’ in-building solutions (IBS) as necessary infrastructure for developments.

House Bill No. 900 by Rep. Christian Tell Yap and House Bill No. 8534 by Rep. Joey Salceda, both pending at the committee level, propose changes to the National Building Code. These changes would mandate telecommunications facilities as necessary infrastructure, and bar property owners from imposing costs for telecommunication service provisioning.

House Bill No. 900, filed by Tarlac 2nd District Rep. Christian Tell Yap, proposes an additional section that would classify “telecommunications facilities such as in-building solutions and fiber optic cabling for high capacity and high-speed requirements” as mandatory for “multi-dwelling buildings, commercial buildings, government and office buildings, public and private schools, and government and private hospitals.”

Meanwhile, House Bill No. 8534, filed by Albay 2nd District Rep. Joey Salceda, explicitly bars building owners and developers from imposing “any cost, expenses, charges or rent… for the provisioning of telecommunications services” in their respective properties.

Globe said it is committed to collaborating with the government and private stakeholders to adopt zero-lease practices for telco infrastructure, aligning with the Asia-Pacific trends that could accelerate the Philippines’ telecom infrastructure development and access to digital services. Daily Guardian