The International Finance Corp. (IFC) announced an $8.3 million indirect equity investment in EdgePoint Infrastructure, a tower platform with operations in Indonesia and Malaysia, to support the company’s entry into the Philippines’ tower market, the institution said in a statement yesterday.
IFC said that by enabling new market entrants and cost-effective connectivity, the investment will increase mobile network capacity and create a competitive market for tower colocations in the country.
IFC’s investment in EdgePoint is part of a larger investment in digital infrastructure assets across emerging markets managed by affiliates of DigitalBridge Group, Inc., a leading global digital infrastructure investment firm.
IFC’s investment involves the acquisition of more than 2,900 towers from the Philippines Long Distance Telecoms Company through a sale-leaseback transaction and the construction of additional new build-to-suit towers.
“This equity investment in EdgePoint marks a significant milestone in digital development in the Philippines, paving the way for more people and businesses to have access to mobile services,” Isabel Chatterton, IFC’s Regional Industry Director for Infrastructure Asia and the Pacific, said.
“With the Philippines poised to grow, strong consumer demand and a vibrant labor market will undoubtedly lead to even greater calls on telecom services. This investment will help meet future needs, which is vital as digital connectivity is so fundamental to helping ensure people and businesses can flourish,” she added.
IFC pointed out that the quality of mobile connectivity in the Philippines is lacking due to pervasive network congestion. The country ranks 92nd out of 130 emerging markets for mobile internet download speed.
“The number of mobile subscribers per tower–a measure of network congestion–is comparable to that of low-income countries and more than three times above the average of countries in the East Asia and Pacific region,” the IFC said.
