Mobile network operator ABS-CBNmobile, a partnership of the Lopez family and Ayala-led Globe Telecom Inc., said the company wants to extend its content across all platforms.
“We’re not a ordinary mobile player our view in mobile is to extend our content across all the platforms, mobile being another platform in which our content will play,” ABS-CBN Corp Chairman Eugenio Lopez 3rd told reporters at the company’s Annual Stockholders’ Meeting on Friday.
ABS-CBNmobile said it is targeting to increase its subscriber base to 3 million this year to break even.
At present, ABS-CBNmobile has about 1.1 million mobile subscribers.
The company had projected it would break even when its subscribers reached to 2 million, but now it has raised its target to about 3 million to break-even because the average revenue per user (ARPU) has declined.
“In relation with Bayan [Telecommunication], ABS-CBNMobile was not making the capital investments that traditional Telco has to make,” said Carlo Katigbak, chief operating officer of ABS-CBN Corp.
“So basically because of the agreement that we have with Globe, we are allowed to cover the country in terms of providing national service coverage without having to make heavy capital expenditures traditionally associated to the telco,” he said.
In May 2013, ABS-CBN Convergence signed a network sharing agreement with Globe Telecom. Under their agreement, Globe will provide the mobile platform through which ABS-CBN can deliver its media content. Both parties may also share assets such as switches, servers and towers.
ABS-CBNmobile is operated by ABS-CBN Convergence, the mobile telecom unit of ABS-CBN Corp. ABS-CBN bought capacity from Globe for its mobile services under a five-year contract.
ABS-CBN Convergence invested about P3 billion to roll out its mobile services.
“The question that we are answering in a positive manner is that we believed that in the coming years, as more and more smartphones come to play in the mobile arena, content is going to be a significant consumption of mobile devices, and we have to be there,” Lopez said.