The National Telecommunication Commission (NTC) on Friday approved the application of ABS-CBN Convergence Inc. (ABS-C), a subsidiary of ABS-CBN Corp., and Globe Telecom for a network sharing agreement.
In a letter to the NTC, Globe stated that “Globe Telecom Inc., Innove Communications Inc. and ABS-CBN Convergence Inc. respectfully request the commission’s approval for ABS-C to co-use certain number blocks allocated to Globe and Innove.”
Innove, on the other hand, will allow the co-use by ABS-C of its local exchange numbers from among those that are available upon a subscriber’s use of service.
The number blocks will be co-used by the parties to expand the coverage and extended the reach of Globe’s and Innove’s existing services authorized by NTC, as well as expand the coverage and extend the reach of ABS-C’s existing service as authorized also by the NTC.
Furthermore, the co-use of these number blocks by Globe, Innove and ABS-C will allow respective parties to maximize their existing network and interconnect resources, and enhance public service without further straining the existing numbering plan of the commission.
“In line with commission’s thrust of promoting sharing of passive and active network infrastructure to reduce cost of public telecommunications services and reduce the effects of radio base stations to the environment, please be informed that the commission acknowledges the network sharing agreement into by your company, Globe and ABS-C subject to the condition that quality of service and service performance shall not be adversely affected and the prescribed quality of service and service performance standards are strictly observed and complied,” the NTC stated in its letter to the two firms.
Earlier, ABS-C sealed a partnership with Globe to expand its telecommunication business via network sharing agreement to deliver content and offer telecommunications services on mobile devices.
“The way to think about it, it’s just like Smart [Inc.] and Globe [Telecom], except [that]its ABS-CBN mobile, most subscribers won’t even know that it’s a deal with Globe. Because it will be a new brand in the market, in a sense we’re a third player,” Eugenio Lopez 3rd, chairman of ABS-CBN Corp., said earlier.
In an earlier disclosure to the Philippine Stock Exchange, the broadcasting company stated that, “this partnership, which converges two separate industries, enables ABS-CBN—the country’s largest media and entertainment conglomerate—to deliver ABS-CBN content and offer traditional telecoms services on mobile devices.”
The Lopez-led company said that through the network-sharing agreement, Globe will provide capacity and coverage on its existing cellular mobile telephony network to ABS-CBN Convergence on a nationwide basis. The parties may also share assets such as servers, towers and switches.