MANILA, Philippines – Internet provider Sky Cable has found a new partner in Converge ICT Solutions, confirming a commercial arrangement months after rumors swirled about a potential partnership.
In a joint press release by Sky Cable and Converge, the two internet providers said that the deal “will enable Sky to upgrade its network and improve services to its subscribers.”
The arrangement allows for Sky subscribers to also benefit from Converge’s fiber network, boosting their broadband speeds with fiber connectivity. For Converge, it will maximize their network and increase port utilization.
“This will be a revenue boost for Converge consistent with similar arrangements with other players as we are able to continue to monetize further our excess network capacity,” Converge president and co-founder Maria Grace Uy said on Monday, July 22.
Converge says it has the country’s largest fiber-to-the-home network, with a more than 700,000-kilometer fiber footprint that reaches 16 million homes. As of end-March 2024, Converge had 2.3 million residential broadband subscribers.
The deal does not mention any cash payout, although it did highlight a “Sky transformational program” that calls for “greater financial discipline,” on top of better operational efficiency and organizational improvements. The joint press release also did not mention Sky’s hefty loan obligations .
“We believe that this is the best way to move forward and stay focused on delivering superior customer experience,” said Carlo Katigbak, ABS-CBN president and chief executive officer, and concurrent Sky director.
A possible partnership between Converge and Sky Cable had been rumored since February 2024 after the latter’s failed sale to telco giant PLDT. Back then, both companies did not confirm nor deny reports of talks between the two, stating that they were open to “exploring opportunities.”
Before this, PLDT had been set on acquiring Sky Cable in a P6.75-billion deal that would have ended the latter’s paid TV and cable business.
The Lopezes were reportedly selling the company to extinguish the multi-billion loan obligations that it took on as it weathers the financial stress caused by former president Rodrigo Duterte’s tirades and Congress’ refusal to renew its franchise. Sky Cable had P4.493 billion in interest-bearing loans and borrowings as of March 31, 2024, based on its first quarter report.
The deal was supposed to be finalized in March 2024, were it not for a surprise decision by both companies to scrap the deal on February 22.
Not even the banks of ABS-CBN, the parent company of Sky Cable, were immediately privy to the reasons why the deal fell through. (READ: ABS-CBN, PLDT didn’t tell banks why they scrapped Sky Cable deal) – Rappler.com
