•PLDT, Smart and DITO share towers, in-building systems and submarine cable in reciprocal arrangement
•Capital shifts from duplicating physical assets to network quality and digital services
The fact
PLDT, Smart Communications and DITO Telecommunity have signed a memorandum of understanding to share macro tower sites, in-building telecommunications systems and submarine cable capacity across the Philippines. The agreement provides shared access to eligible infrastructure instead of relying on traditional leasing arrangements. It is DITO's first infrastructure-sharing agreement with a competing operator; Globe Telecom is not part of the arrangement.
The Philippines' geography has long made nationwide network deployment both complex and expensive. Operators have invested heavily in towers, backhaul and submarine cables to connect thousands of islands while expanding 5G coverage. Sharing existing infrastructure allows those investments to support multiple networks rather than being duplicated by each operator. For DITO, which entered the market in 2021, the deal offers a faster path to expanding network reach.
The Assessment
Physical infrastructure remains essential, but ownership alone no longer determines competitive advantage. As mobile networks mature and deployment costs rise, operators are finding less value in duplicating assets they could build together more efficiently. Across competitive telecom markets, physical infrastructure is increasingly a shared platform while competition shifts to network quality, customer experience and digital services.
That changes where capital goes. Money that once funded parallel towers and cables can now support network modernisation, service innovation and next-generation technologies. Infrastructure is the foundation of competition rather than the advantage itself.
For BTW readers, capital efficiency is becoming a competitive capability. Operators that share physical assets while investing in service quality, automation and next-generation networks are likely to strengthen their long-term position. In the next phase of telecom competition, how capital is deployed may matter more than how many assets an operator owns.
What to Watch
Watch whether Globe or other Philippine operators pursue similar reciprocal sharing arrangements. Regulatory support, new cross-operator agreements and capital investment trends will indicate whether shared infrastructure becomes the standard operating model across the sector.