Globe Supports DPWH Order Further Removing Bottlenecks in Telco Builds
Globe lauded the Department of Public Works and Highways (DPWH) after it issued Department Order (DO) No. 29 to facilitate the construction of infrastructure amid the surging demand for connectivity during the COVID-19 pandemic.
With this, Globe sees faster network builds in the country after the government removed a major bottleneck that prevented telecom service providers from constructing crucial infrastructure projects along national roads.
The order issued by DPWH Secretary Mark Villar last March 23, 2021, amended DO No. 73 issued in 2014 outlining the department’s policy on telco and internet infrastructures to comply with the Bayanihan laws.
Republic Act No. 11469 or the Bayanihan to Heal as One Act (Bayanihan 1) paved the way for faster approval of permits and clearances from local government units to hasten the construction of cell towers, while RA 11494 otherwise known as the Bayanihan to Recover as One Act (Bayanihan 2) waived several permitting requirements for the telcos.
With the new order supporting the objectives of Bayanihan 2, information and communications technology (ICT) service providers are now allowed to construct and undertake excavations and restoration works for infrastructure projects within the allowable right of way limits of national roads. This will be determined by the concerned District Engineering Office of the DPWH.
“We thank the DPWH for its proactive action as this department order will help accelerate the deployment of ICT infrastructure as the country continues to battle the effects of the pandemic,” said Atty. Froilan Castelo, General Counsel of Globe.
In 2014, the DPWH issued an order prohibiting telecom and power companies from constructing posts along national roads as it “creates imminent danger to lives and properties and hamper relief operations” during calamities.
Last October 2020, both the Department of Information and Communications Technology (DICT) and the National Telecommunications Commission (NTC) asked the DPWH to consider the proposed changes to the previous department order.
Both agencies said the restrictions slowed down the rollout of critical telco infrastructure amid the rising demand for affordable, quality, and reliable ICT connectivity due to the shift to work-from-home arrangements and distance learning as a result of mobility restrictions.
Globe has been ramping up its capital expenditures with a compounded annual growth rate of 13.2% over the last five years. Average annual spending since 2016 is 33% of Gross Service Revenues (GSR), and 41% of GSR for 2020.
For 2021, Globe has earmarked a record P70 billion for CAPEX. The telco is allocating 80% of the unprecedented budget on data network builds to deliver world-class internet connectivity for Filipinos. The telco giant aims to build 2,000 cell sites or towers and 1 million fiber-to-the-home (FTTH) lines this year.
Globe strongly supports the United Nations Sustainable Development Goals, particularly UN SDG No. 9 that highlights the roles of infrastructure and innovation as crucial drivers of economic growth and development.