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Globe, ABS-CBN to terminate mobile partnership in November

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ABS-CBN Corp. said Tuesday it will discontinue its mobile phone services by the end of November after ending a five-year mobile network services agreement with Globe Telecom Inc. 

The entertainment multimedia company, controlled by the Lopez Group, said all ABS-CBN mobile prepaid, postpaid and SkyMobi subscribers would enjoy text, call, and data services only until Nov. 30.

“ABS-CBN Convergence expresses its gratitude to its loyal subscribers and will provide them with updates on their plans and subscriptions,” ABS-CBN said. 

The company said while the mobile network sharing was about to end, ABS-CBN and Globe continued to bank on competencies and focus on new synergies to serve their customers better, such as the promotional bundling of ABS-CBN TVplus boxes with Globe At Home prepaid WiFi and making ABS-CBN TVplus’ KBO (Kapamilya Box Office) and iWantv over-the-top services available to all Globe subscribers. 

The company said all ABS-CBN mobile and SKYmobi promo offers would no longer be offered to subscribers effective Oct. 25, 2018. 

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ABS-CBN said earlier it terminated its network sharing agreement with Globe because of the venture’s “financially unsustainable” mobile business model.

ABS-CBN Convergence teamed up with Globe in 2013 for a five-year network sharing agreement to deliver content and telecommunications services on mobile devices through its ABS-CBN mobile brand.

Under the agreement signed in May 2013, Globe would provide the capacity and coverage on existing cellular mobile telephony network to ABS-CBN Convergence Inc. on a nationwide basis. 

The parties also shared assets such as servers, towers, and switches. The network sharing agreement was scheduled to expire this year.

ABS-CBN reported a net income of  P741 million in January to June, down from P1.25 billion in the same period last year. 

The company generated consolidated revenues of P18.9 billion from advertising and consumer sales,  down by  2.1 percent year-on-year.

Advertising revenues dropped 3.1 percent to P9.57 billion from last year’s P9.87 billion because of fewer advertising placements in the first half.

Consumer sales also went down 1.1 percent to P9.35 billion on lower theatrical receipts from Global and ABS-CBN Films and lower revenue from Sky Cable’s cable business.

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