MANILA, Philippines — Aboitiz InfraCapital Inc. sees big potential in its small cell sites business as telcos ramp up their 5G deployment.
The company will expand by yearend its small cells operations in Luzon, after initially rolling out small cells sites in Cebu and Davao with Globe Telecom and Dito Telecommunity.
“We are targeting to end the year at close to 350 small cell sites, and we’ve deployed so far in Cebu and Davao. But by yearend, we’re looking to deploy in Subic as well. What that means to us is we’ll be a truly nationwide player by being present in all three regions,” Aboitiz InfraCapital AVP and general manager for small cell sites Rafael Aboitiz said.
Aboitiz InfraCapital last year launched its small cell sites business to help mobile network operators accelerate the expansion of their network capacity and coverage using Aboitiz group assets.
Small cells are expected to play a key role in the deployment of 5G, which requires antenna density to deliver larger quantities of data at higher speeds.
“We see tremendous growth in this sector and we see a lot of opportunity to grow the business further, particularly as 5G deployments ramp up in the country, as well as the return to normal with urban mobility,” Aboitiz said.
“The small cell business is well positioned to take advantage of these drivers,” he said.
Small cells are small low-powered, short-ranged antennas, which provide coverage and capacity meant to work in conjunction with macro cell towers.
By providing more targeted network capacity, small cells can help mobile network operators deliver increased data capacity and faster connectivity speed in an area, which will in turn result in better audio and video streaming and overall wireless experience for users.
“I see the business as very complementary to the macro tower sites. One thing that sets us apart as well is we envision this being a very scalable solution. Particularly, that will be very important as we see the ramp up into 5G, which is going to be very aggressive over the next five years,” Aboitiz said.
The small cells business is expected to contribute a bigger share in Aboitiz InfraCapital’s top and bottom line mix as the company expands further in the coming years.
Aboitiz InfraCapital has also formed a joint venture with global private markets firm Partners Group to establish a telecommunications infrastructure platform called Unity Digital Infrastructure Inc.
The two companies will build and operate telecommunication towers and supporting infrastructure across the country through Unity.