Network unplugs mobile business next month

  • Page Views 521
  • ABS-CBN Corp. yesterday said it will officially end the operation of its mobile business by November this year for failing to achieve profitability after five years.

    ABS-CBNmobile prepaid, postpaid and SkyMobi subscribers will continue to enjoy text, call and data services until November 30.

    ABS-CBN unit ABS-CBN Convergence and Ayala-led Globe Telecom have agreed not to renew their five-year mobile network sharing contract which expired in June this year.

    “After a thorough assessment, ABS-CBN Convergence deemed its current mobile business model to be financially unsustainable. As a result, ABS-CBN Convergence and Globe have reached an agreement not to renew their mobile network sharing contract,” ABS-CBN said in a filing at the Philippine Stock Exchange.

    ABS-CBN partnered with Globe to deliver mobile services nationwide using Globe’s infrastructure. ABS-CBN is paying the telco on a wholesale rate for the use of its servers, towers and switches.

    ABS-CBN has invested P3 billion as working capital in the first three years of operation of its mobile venture for back room support, billing system and customer services.

    The company aimed to have at least 2 million mobile subscribers to break even, but it only had 930,000 subscribers by end-2016 and almost the same in 2017, before dropping further this year due to competition.

    ABS-CBN’s digital and interactive media segment – composed of online, mobile and over-the-top business – reported a net loss of P441 million in 2017, lower than its net loss of P634 million in 2016.

    Despite the contract termination, ABS-CBN and Globe are exploring new ways and synergies that complement their business models.

    The two companies continue to bank on their competencies and focus on new synergies to serve their customers better, such as the promotional bundling of ABS-CBN TVplus boxes with Globe At Home prepaid WiFi and making ABS-CBN TVplus’ KBO (Kapamilya Box Office) and iWantv over-the- top services available to all Globe subscribers.

    ABS-CBN Convergence thanked its loyal subscribers and vowed to provide updates on their plans and subscriptions.

    It also said all ABS-CBNmobile and SKYmobi promo offers will no longer be offered to subscribers effective October 25, 2018.

    ABS-CBN Convergence, formerly Multi-Media Telephony Inc., has a congressional franchise to operate mobile and broadband services nationwide that is set to expire by 2020. (Malaya)

    Share

    New Posts Recently publish post More

    • 20 May 2019
      3 days ago No comment

      Canada comments on recall of Philippine ambassador and consuls over garbage issue

      On May 16, the Philippine government announcement that it has recalled its ambassador and consuls in Canada after Canada missed the May 15 deadline to take back garbage shipped to the Philippines in 2013 and 2014 by an Ontario company. Global Affairs Canada today issued the following statement:   ...

    • 19 May 2019
      4 days ago No comment

      The 3rd annual Canada Day Drumming Celebration Challenges New World Record

      Vancouver, B.C. – With just two months to go until Canada Day, the organizing committee of the Canada Day Drumming Celebration is excited to announce that there will be ten (10) cities across five time zones participating this year. It includes Halifax, Toronto, Montreal, Winnipeg, Regina, Prince George, Kelowna, ...

    • 19 May 2019
      4 days ago No comment

      OFW remittances reach 3-month high in March

      MONEY sent home by overseas Filipino workers (OFWs) rose to a three-month high in March, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday. Personal remittances — made up of OFWs’ net compensation; personal transfers, whether in cash or kind; and capital transfers between households — reached $2.796 billion ...

    • 19 May 2019
      4 days ago No comment

      Conglomerate still keen on MRT takeover

      Despite delays, Metro Pacific Investment Corp. (MPIC) is still keen on pursuing its P20-billion unsolicited proposal to take over the operation and maintenance of Metro Rail Transit line 3 (MRT-3) , according to its chairman Manuel Pangilinan. But MPIC cannot proceed until an ongoing arbitration case in Singapore is ...

    • 19 May 2019
      4 days ago No comment

      BSP: Banking system sustains growth story

      The Bangko Sentral ng PIlipinas said that, with the banking system at its core, the financial system “remains resilient amid evolving domestic and global environment.” “The Philippine banking system sustained its growth story, maintained its solid footing as evidenced by its satisfactory asset quality, ample liquidity and solvency, profitable ...

    %d bloggers like this: