ADB lends P2.4 billion to iSON for buildup of telco towers

March 5, 2024 | 12:00am

MANILA, Philippines — The Asian Development Bank (ADB) is extending P2.4 billion in loans to iSON Tower Limited Inc. to bankroll the construction and operation of 800 shared telecommunication towers in the country.

In a statement yesterday, the multilateral lender said the loan facility is part of a broader P4.8-billion cofinancing package led by the ADB to help bring digital connectivity to underserved areas in the Philippines.

The ADB and Security Bank Corp. are providing P2.4 billion each for the financing package, which has a tenor of 12 years.

The multilateral lender said the loan is structured to mitigate risks related to greenfield financing of telco towers.

“Expanding and enhancing telecommunications infrastructure is vital to bridge the digital divide, empower communities, and foster economic growth and development in the Philippines,” ADB director general for private sector operations Suzanne Gaboury said.

“Shared infrastructure services, like those provided by iSON Tower, will give underserved communities better access to communication, as well as to work in the digital economy, e-health services, access online education, e-government services, and to prepare for disasters,” she said further.

While the Philippines is among the countries with the most widespread smartphone usage in Southeast Asia, the country has limited tower coverage, with only 240 towers per million population.

To accelerate the rollout of towers, the Department of Information and Communications Technology (DICT) has allowed companies to build and manage shared towers for telco operators.

Independent tower company iSON Tower is among the firms licensed by the DICT to build and manage telco towers in the country.

The firm is part of information and communication technology company iSON Group, which has presence in over 30 countries across Asia, Africa and the Middle East.

Aside from leasing the land and building the infrastructure, iSON Tower is responsible for the management, security, and maintenance of the towers.

Telco service providers Globe Telecom Inc. and Smart Communications Inc. have master lease agreements with iSON Tower.

As ensuring reliable connectivity is necessary to meet the country’s rapidly changing digital needs, iSON Tower founder and chairman Vivek Gupta said the company has made significant investments on telco infrastructure in the Philippines since 2021.

“With the partnership of ADB and Security Bank, iSON is committed to strengthen the country’s telecom infrastructure landscape for 5G and beyond,” he said.