With a massive debt, Sky Cable needs all the help it could get and a new partnership has opened to save the cable TV service.
Converge ICT Solutions is coming to the rescue and the agreement between these two firms will initially cover sharing of net assets. So, how is this going to save Sky Cable?
The deal will help Sky Cable to lift itself out of PHP 5 billion debt. However, the long-term part is to allow the former to create a rehabilitation plan so it could pay its debt.
The company has been struggling due to the decline in pay TV subscriptions and the lack of direct-to-home services when ABS-CBN failed to get a new franchise. Meanwhile, Converge will be able to maximize port utilization.
Together, Converge and Sky Cable can provide incredible and stable internet connection speeds using each other’s existing technologies. Sky subscribers can even benefit from fiber optics of Converge.
“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.
Converge CEO Dennis Anthony Uy hopes that if he acquires Sky Cable, it can run with a fresh yet cost-efficient business model.
Previously, Sky Cable entered a deal with PLDT. But the buyout didn’t push through and neither firm revealed the specifics.
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