Sky Cable Corp., a subsidiary of listed ABS-CBN Corp., has formed a strategic alliance with Converge Information and Communications Technology Solutions, Inc. to upgrade the cable television firm’s network and improve services to its subscribers while maximizing port utilization of the listed fiber optic service provider.
Converge has the largest fiber-to-the-home (FTTH) network in the Philippines with over eight million ports and a fiber footprint extending over 700,000 kilometers that reaches 16 million Filipino homes nationwide. As of end-March 2024, Converge serves 2.3 million residential broadband subscribers across the country.
The deal comes months after PLDT Inc. called off a take over bid for Sky, which would have given the telecom company 350,000 broadband subscribers plus hundreds of thousands more cable TV subscribers.
It is unclear whether this new deal will eventually result in Converge taking over or getting a substantial stake in Sky, which posted a P653 million net loss last year and P4.5 billion in debt. Financial details of the agreement weren’t disclosed as well.
“Converge has built a superior state-of-the-art fiber network nationwide that Sky customers will soon experience,” said Mark Lopez, chairman of Sky.
Claudia Suarez, president and chief operations officer of Sky, emphasized that the initiative supports Sky’s ongoing transformation efforts to enhance its products and services. She said the partnership with Converge would result in significant benefits from their world-class fiber network.
Converge president and co-founder Maria Grace Uy explained that the arrangement will optimize Converge’s network capacity and contribute to revenue growth. “This collaboration allows us to leverage our extensive fiber-to-the-home network, benefiting both companies and enhancing broadband services across the country,” Uy stated.
Converge CEO and co-founder Dennis Anthony Uy expressed enthusiasm about supporting Sky’s transformation by providing the ABS-CBN unit with the latest optical fiber technology.
Carlo Katigbak, president and CEO of ABS-CBN and a Sky director, underscored the positive impact of the collaboration on Sky’s subscriber base. “This partnership with Converge aligns with our commitment to delivering superior customer experience,” Katigbak commented.
In addition to network upgrades, Sky’s transformation program includes initiatives for operational efficiency, financial discipline, and organizational enhancements. The collaboration between Sky and Converge sets a precedent for industry cooperation and innovation in the Philippine telecommunications sector.
The partnership between Sky and Converge marks a significant milestone in enhancing broadband services across the Philippines, promising improved connectivity and service quality for consumers nationwide.
