Globe pushes to eliminate telco facility lease fees in buildings

Globe Telecom has made significant progress in its campaign to remove lease fees for in-building telecom facilities, with an increasing number of property developers supporting the initiative.

The move is aimed at reducing operational costs, improving connectivity, and making digital services more accessible across the Philippines.

Globe Telecom’s efforts to eliminate lease fees for in-building telecom infrastructure are gaining momentum as more property developers embrace the concept.

“We have made some progress along these lines, getting a number of developers to already agree on this concept. We’re just glad to report things are moving and moving in the right direction,” Globe President and CEO Ernest Cu said,

Cu highlighted the disparity between the telecom sector and other utilities like water and power, which are typically installed without additional charges.

In contrast, telecom companies often face significant expenses due to leases and fees for access to telco rooms and other necessary infrastructure within buildings.

“Such unregulated fees, which bloat telco expenses, derail efforts to expand connectivity as demand continues to rise,” Cu explained.

As more Filipinos rely on the internet for work, education, and daily life, Cu emphasized that connectivity has become a basic necessity.

Globe’s vision is to remove these financial obstacles, making telecom services more affordable and accessible for everyone.

In its push to eliminate these fees, Globe is working closely with property developers and the government.

The company is advocating for amendments to the National Building Code, which would recognize connectivity as a basic necessity. This change would facilitate the removal of lease fees for the installation of telecom infrastructure and ensure that space is automatically allocated for telco equipment in new developments.

Globe’s initiative draws inspiration from successful models in other Asia-Pacific countries. For instance, in Australia, property developers are responsible for ensuring telecom infrastructure is in place when new properties are occupied.

Similarly, in Singapore and Hong Kong, building owners are required to provide space and access for telecom services without imposing additional costs.

“By reducing barriers and lowering costs, Globe aims to improve access to digital services for businesses and consumers alike,” Cu said.

Globe said it remains committed to driving the adoption of zero lease practices across the Philippines, ultimately contributing to a more connected and competitive economy.