What is PLDT and DITO's Network Sharing Agreement in Asia?

A recent memorandum of understanding (MOU) signature by three companies has posed a looming question.

That is, can competing telco operators work together without giving up their competitive edge?

PLDT, its mobile arm Smart Communications and DITO Telecommunity believe they can.

The companies have agreed to share parts of their telecoms infrastructure in a move designed to expand network coverage, improve service reliability and make better use of existing assets.

The move allows the companies to make better use of existing assets within the region instead of investing in duplicate infrastructure.

What exactly does the agreement cover?

The agreement covers three areas: reciprocal access to eligible macro tower sites, colocation of in-building solutions in commercial properties and shared use of submarine cable capacity through indefeasible right of use (IRU) arrangements.

The collaboration comes as operators continue balancing growing demand for mobile data and 5G services with the high costs of expanding national networks.

While the companies are competitors in the consumer market, the agreement creates a framework for reciprocal resource sharing with no monetary exchange between the parties.

By opening access to existing infrastructure, the operators aim to accelerate network deployment and improve connectivity for customers across the country while making more efficient use of capital investment.

Shared responsibility

Speaking at the signing, Manuel V. Pangilinan, Chairman and CEO of PLDT, said the agreement reflects a broader responsibility shared across the sector.

"Connecting the country is a responsibility that we all share as Philippine telcos," he stated.

"This agreement reflects that, even as we compete in the marketplace, we can collaborate where it matters the most: accelerating digital inclusion, helping connect every Filipino and creating greater opportunities for our people and our nation."

The agreement is expected to reduce unnecessary duplication of network infrastructure by enabling the operators to share macro sites and indoor telco facilities instead of building parallel assets.

DITO looks to build on momentum

The agreement supports DITO's network that has expanded rapidly since entering the Philippine mobile market just a few years ago.

Eric R. Alberto, President and CEO of DITO Telecommunity, said the agreement could lay the foundations for broader cooperation between the companies.

"This partnership that we are forging today is a modest one. This allows the companies to deliver much better services for all our respective customers.

"May this partnership usher and blossom into many more things so that we can have meaningful results for our companies, and more importantly, for the betterment of services for all our respective customers."

The MOU also enables the companies to optimise international connectivity through shared submarine cable capacity, complementing the domestic infrastructure-sharing arrangements.

Smart's mobile footprint

Smart's extensive mobile network already reaches the vast majority of the Philippine population.

By pooling existing assets rather than replicating them, PLDT, Smart and DITO expect to accelerate network expansion while improving coverage and service resilience for customers across the Philippines.

Each operator retains its commercial independence while sharing infrastructure where it delivers mutual operational benefits.