Lopez firms go into 'functional convergence'

With convergence fast becoming a by-word in the business community, two Lopez-owned companies are doing just that, bringing new meaning to the word "cable telephony."

Benpres Holdings Corp., the publicly-listed holding company of the Lopez family, said the "functional convergence" of certain operations of Bayan Telecommunications Holdings Corp. (BayanTel) and Sky Vision Corp. was "a business strategy to maximize their competitiveness in the new economy."

"BayanTel and Sky believe that the new economy requires companies to adapt to the rapid development of technologies that require faster and more efficient ways of doing business," Benpres corporate secretary Enrique Quiason said.

Benpres owns 46.3 percent and 20 percent equity earnings in BayanTel and Sky Vision, respectively.

He explained that while no corporate merger will take place, the functional convergence or consolidation was approved by the respective boards of BayanTel and Sky Vision this month. In fact, both have started to lay the groundwork for the setting up of a cable telephony infrastructure that would power up Internet access using cable TV.

The Benpres group has been in a neck-to-neck battle with other groups such as Metro Pacific, the Ayala group and the Gokongwei group in bringing about convergence in their telecommunication units.

Telecommunications giant PLDT has started the functional convergence trend with its subsidiaries that include cellular firms Smart and Piltel, internet provider Infocom Technologies and satellite communications Mabuhay Satellite.

The Ayala group, although heavily concentrated in property development, is also firmly rooted in new technology with landline and cellular arm Globe Telecoms, systems integrator Ayala Systems Technology, semiconductor maker Integrated Microelectronics and e-commerce unit EDINet Philippines.

The JG Summit Group of Tycoon Jonn Gokongwei is slowly catching up with its carrier Digital Telecommunications (Digitel) and its plans to venture into cellular and Internet telephony.