ABS-CBN scales back MVNO ambitions
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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.
Questions & Answers
Q.What led ABS-CBN to scale back its MVNO operations?
What led ABS-CBN to scale back its MVNO operations?
The company reduced its MVNO activities due to a declining subscriber base. For the first six months of 2016, the MVNO reported a 13% fall in subscribers, dropping to 520,000 in total. This decline prompted efforts to curb losses.
Q.How has ABS-CBN adjusted its financial commitment to Globe Telecom?
How has ABS-CBN adjusted its financial commitment to Globe Telecom?
ABS-CBN has halved its annual fees to Globe Telecom, the network provider. The company's payment for using Globe's network has been reduced from 400 million pesos ($8.6 million) per year to 200 million pesos.
Q.Has ABS-CBN changed its strategy for offering its iWant TV content?
Has ABS-CBN changed its strategy for offering its iWant TV content?
Yes, ABS-CBN has altered its model for iWant TV. Initially, it offered exclusive access to lure customers, but it has since opened up access to its iWant TV app to subscribers of both Globe and rival mobile operator Smart.
Q.Will ABS-CBN renew its MVNO agreement with Globe Telecom?
Will ABS-CBN renew its MVNO agreement with Globe Telecom?
The company has not yet decided on renewing its MVNO agreement with Globe. The current agreement is set to expire in two years, and ABS-CBN's CFO indicated they are still considering their options.
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