Lopez Group to wind down mobile business, explores new synergies with Globe
Media conglomerate ABS-CBN Corp. is set to pull the plug on its mobile phone operations five years after it launched as it struggled to find a sustained audience.
In a statement, ABS-CBN said it decided not to renew its network sharing agreement with Globe Telecoms. Under the five-year deal, which expires this year, ABS-CBN tapped Globe to provide the capacity and coverage on existing cellular mobile telephony network.
?After a thorough assessment, ABS-CBN Convergence deemed its current mobile business model to be financially unsustainable,? the Lopez-led broadcasting firm said.
Instead, the companies are exploring more profitable opportunities in the content business to leverage on ABS-CBN?s expertise as top content provider to the Filipino audience and Globe?s vast reach as a leading telco.
These product synergies include the promotional bundling of ABS-CBN TVplus boxes with Globe At Home prepaid WiFi and the availability of ABS-CBN TVplus? KBO (Kapamilya Box Office) and iWant TV over-the-top services to all Globe subscribers, which are already commercially available.
ABS-CBN said al its mobile prepaid, postpaid and Sky Mobi subscribers would continue to enjoy text, call, and data services until the final date that will be approved by the National Telecommunications Commission for the cessation of the business.]
ABS-CBN Mobile incurred a net loss of P560 million in 2016, down from P600 million the previous year.
Meanwhile, all ABS-CBNmobile prepaid, postpaid and Sky Mobi subscribers will continue to enjoy text, call, and data services until the final date that will be approved by the National Telecommunications Commission.