ABS-CBN scales back MVNO ambitions

Philippine media group ABS-CBN has scaled back its MVNO business in response to a declining subscriber base.

The company has cut the annual fees it is paying network provider Globe Telecom in half as part of efforts to curb losses from its ABS-CBN Mobile operations.

ABS-CBN CFO Aldrin Cerrado told the publication that the company plans to continue its mobile operations but has scaled down its ambitions, and has not yet decided whether to renew its MVNO agreement with Globe after it expires in two years.

He said the company’s annual fee for using Globe’s network has been reduced from 400 million pesos ($8.6 million) per year to 200 million pesos.

The cuts came after the MVNO reported a 13% decline in subscriber base for the first six months of 2016 to 520,000.

In addition, ABS-CBN’s strategy had been based on luring customers via offering exclusive access to television content via its iWant TV app. But the company has since altered its model to open up access to iWant TV to Globe and rival mobile operator Smart.