Manila, Philippines — ABS-CBN Convergence Inc. — the mobile telecommunications unit of broadcast giant ABS-CBN Corp. — announced Tuesday services under the ABS-CBNmobile brand will end next month after the business proved to be “financially unsustainable.”
In a disclosure to the stock exchange, the media conglomerate said ABS-CBN Convergence and telco giant Globe Telecom have agreed not to renew their five-year mobile network sharing contract, which will expire this year.
All ABS-CBNmobile prepaid, postpaid and SkyMobi subscribers will continue to enjoy text, call and data services until Nov. 30, 2018.
Meanwhile, all ABS-CBNmobile and SKYmobi promo offers will no longer be offered to subscribers effective Oct. 25, 2018.
“After a thorough assessment, ABS-CBN Convergence deemed its current mobile business model to be financially unsustainable,” the company told the stock exchange.
“ABS-CBN Convergence expresses its gratitude to its loyal subscribers and will provide them with updates on their plans and subscriptions,’ it added.
In November last year, ABS-CBN chief financial officer Aldrin Cerrado said the company in reviewing its mobile business strategy, in a bid to trim down the losses of ABS-CBNmobile.
“The direction is to have a mobile strategy in order to maximize the revenue potential of our content in many platform as possible including the mobile platform,” Cerrado earlier said.
As of 11:32 a.m. Tuesday, shares in ABS-CBN Corp. were up 15 centavos or 0.72 percent to P20.95 each.