Rivals PLDT, DITO seal rare network-sharing pact
Telco rivals PLDT Inc. and DITO Telecommunity have forged a landmark agreement to share network infrastructure, in what is a rare collaboration between competitors both striving to expand their respective connectivity footprint.
This agreement, which also covers PLDT’s wireless unit Smart Communications Inc., is aimed at expanding network coverage and improving service reliability through the shared use of existing infrastructure, and comes at no cost to either company.
Rather than building new facilities, the two telcos agreed to allow each other access to eligible terrestrial cell towers, in-building solutions and portions of their submarine cable systems.
This deal marks an unusual partnership between PLDT, the country’s largest and oldest telco provider, and DITO, the third major player that entered the market in 2021.
“Connecting the country is a responsibility that we all share as Philippine telcos,” said PLDT chair and CEO Manuel V. Pangilinan in a statement.
“This agreement reflects that, even as we compete in the marketplace, we can collaborate where it matters the most: accelerating digital inclusion, helping connect every Filipino, and creating greater opportunities for our people and our nation,” Pangilinan added.
The agreement also provides for temporary access to portions of each other’s submarine cable capacity through right-of-use arrangements.
By sharing existing infrastructure where facilities are already available, the companies also said they expect to deploy capital more efficiently while avoiding the “unnecessary duplication” of network investments.
This comes as PLDT expects capital expenditures to fall within the mid-P50 billion range this year, after spending P10 billion in the first quarter.
DITO, meanwhile, continues to grapple with a widening capital deficiency, which reached a record P117.73 billion during the same period.
DITO president and CEO Eric Alberto said he hopes the partnership would pave the way for broader collaboration between the telcos.
