MANILA, MAY 28, 2013 – ABS-CBN Convergence has announced an expansion of its telecommunications business through inking a network-sharing agreement with Globe Telecom. The agreement allows ABS-CBN to deliver media content and telecommunications services to subscribers via mobile devices, using Globe’s mobile network, under a five-year contract.
As part of the agreement, as stated in its disclosure announcement to the Securities and Exchange Commission and Philippine Stock Exchange, Globe is to provide ABS-CBN Convergence with capacity and coverage on its cellular mobile network on a nationwide basis. As such, both parties may share assets including towers, servers and switches. ABS-CBN said that it was investing P3 billion to P5 billion in this project.
At a press conference, ABS-CBN Convergence president and managing director Carlo Katigbak said that this newest pioneering move from ABS-CBN aims to expand Filipinos’ access to ABS-CBN content on mobile devices.
“We have come to realize that the mobile internet is going to become one of the most important platforms for delivering content to our audiences. We believe that in the same way television revolutionized the mass market’s ability to receive information and entertainment, the wireless internet will be the next most important medium for our audience. Very soon, our Kapamilyas will enjoy special shows, receive our news, and interact with our stars from anywhere and anytime they want, through their tablets and cellphones,” Katigbak said.
Globe Telecom CEO Ernest Cu said that the partnership would create a new market for mobile users.
He said, “We are happy that Globe is once again at the forefront of a pioneering effort. We entered this partnership to provide Filipinos with more reasons to enjoy their mobile phones. The exclusive content that ABS CBN will provide ushers in a new form of entertainment for mobile users in the Philippines. We are now seeing the gains of our network modernization and IT transformation initiatives, having new capabilities to enter into these businesses to showcase our strength and leadership.”
ABS-CBN chairman Eugenio Lopez III told reporters that essentially, this would be a third player in the market.
"The way to think about it is just like Smart and Globe, except it’s ABS-CBN Mobile. It would be a new brand in the market. In essence it’s a third player," Lopez said.
"We are doing testing now around the country on the Globe network. We are really going to focus on the data components, not the voice components," Lopez added.
The service is to be rolled out within 2013.
In the 2000s, ABS-CBN debuted TFC.tv, the first video-streaming site that plays host to ABS-CBN content for Filipinos abroad. Recently, ABS-CBN also introduced its free video streaming website for Philippine residents, iWanTV!, which allows Filipinos to watch ABS-CBN programs on demand.
