ABS-CBN Corp. said Monday it terminated its network sharing agreement with Globe Telecom Inc. because of the venture’s “financially unsustainable” mobile business model.
“ABS-CBN Convergence and Globe reached an agreement not to renew their mobile network sharing agreement and to look at more profitable opportunities in the content business,” ABS-CBN said in a disclosure to the stock exchange.
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-CBNmobile 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.
Losses of ABS-CBN Mobile last year were almost the same as in 2016. ABS-CBN Mobile posted a net loss of P560 million in 2016, lower than the P600-million net loss in 2015.
“ABS-CBN Convergence and Globe reached an agreement not to renew their mobile network sharing agreement and to look at more profitable opportunities in the content business,” ABS-CBN said in a disclosure to the stock exchange.
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-CBNmobile 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.
Losses of ABS-CBN Mobile last year were almost the same as in 2016. ABS-CBN Mobile posted a net loss of P560 million in 2016, lower than the P600-million net loss in 2015.
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