Philippine’s Tiger Infrastructure Raised $40M for Tower Drive
In 2022, Tiger Infrastructure’s local branch secured a $40 million loan from the Asia Development Bank (ADB) to build 380 towers in the southern Philippines. Tiger Infrastructure Partners focuses on investing in projects in Asia, particularly emphasizing the Philippines.
This tower drive initiative supports the country’s push to construct and share infrastructure.
The Philippines is viewed as a promising market in the telecom industry, and it is forecasted to grow at a CAGR of 4 percent in the next four to five years. The main drivers include an ever-increasing population and smartphone services for remote work and streaming purposes. The Philippines continue strategizing on making products and services more affordable while expanding its network.
“The total telecom services revenue in the Philippines was $9.4 billion in 2021 […]. This growth will be driven by a steady rise in mobile subscriptions, an increase in 4G service adoption supported by ongoing 4G/LTE network expansions by MNOs, projected growth in higher ARPU 5G subscriptions, and expansion of fixed broadband network coverage and subsequent increase in FTTx lines will drive this growth.” – GlobalData
The funded initiative will allow for common tower sharing, meaning multiple mobile network operators can lease the exact location. ADB stated that as of 2021, the Philippines has only 164 towers per 1 million people or about 27,000 telecom towers, making it one of the lowest coverage rates in the region. The project will more than double coverage accessibility, and it’s estimated that the Philippines will build an additional 60,000 towers by 2031 due to the high demand and need in unserved areas (ADB).
“This project will improve access to the digital economy in the underserved regions of Visayas and Mindanao and have a tangible impact on the quality of life for local communities.” – Suzanne Gaboury (ADB’s Private Sector Operations Department Director General).
While Tiger Infrastructure is responsible for the construction, land leasing, operation, and maintenance, any equipment needed to be installed on the towers will belong to the tenants.
This announcement showcased an encouraging sign for the Philippines. It indicates that investors remain confident in the country’s infrastructure development plans and are highly interested in investing in these projects. With continued investment in infrastructure, the Philippines is expected to contribute significantly to economic growth and development, improving connectivity and energy security and creating new opportunities for businesses and individuals alike.