Lopez, Ayala launch 3rd telco player

ABS-CBN, Globe forge groundbreaking partnership

MANILA, Philippines - Multimedia giant ABS-CBN Corp. is set to become a third player in the competitive telecommunications industry entailing investments of as much as P3 billion through a network sharing agreement with Ayala-led Globe Telecom Inc.

ABS-CBN chairman Eugenio Lopez III said in an interview with reporters that the listed multimedia provider through ABS-CBN Mobile would become a third player in the industry dominated by both Globe and Smart Communications Inc.

Lopez said the company through ABS-CBN Convergence Inc. would offer traditional telecom services such as voice calls and short messaging system (SMS) as well as wireless Internet to deliver content just like the two major players.

“The way to think about it, it is just like Globe and Smart except it is ABS-CBN Mobile. In a sense we are a third player,” he stressed.

According to him, ABS-CBN is spending between P2 billion and P3 billion to acquire communications equipment and for working capital while utilizing the network of Globe nationwide.

He pointed out that ABS-CBN would buy capacity from Globe on a wholesale basis as part of the network sharing agreement to deliver its content and to offer traditional telecoms services such as voice and SMS services on mobile devices.

“Most of the subscribers would even know that it is a deal with Globe because it will be a new brand in the market,” he added.

The venture of ABS-CBN into the telecom business would be launched in the second half of the year as regulatory approvals from the state-run National Telecommunications Commission (NTC) are still being sought.

He clarified that the tie up is separate from the ongoing acquisition of the Lopez-owned Bayan Telecommunications Inc. As a strategic initiative to ensure long-term business competitiveness, NTC has given Globe and Bayantel the greenlight to jointly use the frequencies in the 1800 MHz band assigned to Bayan.

For his part, ABS-CBN Convergence president and managing director Carlo Katigbak said in a press conference that the tie up with Globe would create a new experience for Filipinos by expanding their access to ABS-CBN content on mobile devices.

 â€œWe 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,” Katigbak said.