New Building Code Pushed For Telcos

There is a need for the government to "reconfigure" the building code to allow telcos to allocate more investments for the necessary last-mile push for digital inclusion.

Globe Telecom is pushing for the exemption of telcos from the lease payments for communications towers, thus allowing more focus on investments instrumental to digital inclusion.

This change, previously proposed by Globe Telecom, would exempt telco companies from the lease payments they make for their telco towers.

Implementing this exemption, which could be immediately enacted with adjustments to the country's New Building Code, would free up more capital expenditures for telcos, aligning with the Department of Information and Communications Technology's (DICT) efforts to enhance internet connectivity.

Many other countries have adopted similar schemes of not collecting lease fees from telcos as a means of promoting digital inclusion, which leads to vibrant economic growth.

It's time for the Philippines to intensify its digital push, especially considering the prevalence of scams that even private initiatives like ScamWatchPilipinas cannot fully control.

The figures on telco fees are substantial, we understand.

While Globe's Jomel Gonzaga may not have the exact amount of telco fees paid to property owners, reallocating these fees from building owners will undoubtedly improve connectivity, especially in island provinces.

This should be the focus of the DICT, with less emphasis on monitoring scams, which should fall under the jurisdiction of the National Bureau of Investigation's cyber unit.

In advocating for the removal of lease fees for telco infrastructure in local property developments, Globe has cited successful implementations of similar policies across countries in the Asia-Pacific region such as Australia, Singapore, and Hong Kong.

Australia's approach requires property developers to organize and cover the costs of pit and pipe infrastructure, ensuring that services are available when people move into new premises.

This responsibility aligns with developers' obligations to provide essential utilities, enhancing livability.

Similarly, Singapore's Code of Practice for Info-communication Facilities in Buildings (COPIF) mandates building owners and developers to provide space and access for telecom licensees, ensuring adequate telecom infrastructure without imposing additional costs.

Singapore’s policy ensures that both residential and commercial developments benefit from robust telecom services, contributing to the nation's digital economy.

In Hong Kong, regulations also require building owners to provide telecom installation space and access, emphasizing mutual benefits for buildings and their tenants from shared mobile coverage.

Such policies have significantly contributed to creating a resilient mobile telecom network across the city, supporting the growing demand for mobile services.

"The experiences of Australia, Singapore, and Hong Kong demonstrate that zero lease practices for telecom infrastructure can lead to more efficient market operations and better consumer services. It will be advantageous for the Philippines to adopt similar policies, paving the way for enhanced digital connectivity and competitiveness in the region," said Ernest Cu, Globe President, and CEO.

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 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 fees to service providers.

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

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.

Both bills are pending at the House Committee level.

Globe is committed to collaborating with government stakeholders and the private sector to explore the implementation of zero-lease practices for telco infrastructure in the country.

By aligning with practices proven successful in other Asia-Pacific countries, the Philippines can accelerate the expansion of its telecom infrastructure, benefiting businesses and consumers alike with improved access to digital services.