SKY seeks to corner a third of PH fiber internet business
Media giant ABS-CBN Corp. wants to raise its market share in the fiber internet business, announcing on Wednesday a slew of new pricing plans that undercut the rates of competitors.
Through subsidiary SKY Cable Corp., the once dominant cable television company that is seeing faster growth in broadband, ABS-CBN wanted to eventually control a third of the country’s fiber segment, said Claudia Suarez, Sky Cable’s head of consumer products.
The business is important for ABS-CBN since the fiber industry in the Philippines has a relatively low market penetration rate versus wireless internet.
It is also a big earnings driver, with cable, satellite and broadband accounting for a fifth of the company’s revenue of P20.8 billion in the first half of 2019.
“Competition is very fierce today and is driven by the rate that speeds are growing,” she said.
Sky’s unlimited fiber broadband rates start at P1,499 a month for up to 25 megabits per second. This is P1 cheaper than its closest rival, Converge ICT Solutions Inc. The rates are also much lower than those offered by PLDT Inc. and Globe Telecom.
Unlimited broadband-only plans can go as fast as 150 mbps for P3,499 a month—also lower than competition.
Suarez said the company’s market share in broadband reached a high of 22 percent in select areas. Sky’s broadband service is available in Metro Manila, Cavite, Laguna, Bulacan, Cebu, Bacolod, Iloilo, Davao and General Santos.
“We are not competing with PLDT and Globe in terms of scope, they have a bigger footprint,” she said.
She said that Sky was aiming to provide better service quality in the areas where it is present. The company had about 300,000 broadband subscribers and the figure could grow by 30 percent in the next 12 months, Suarez added.
Sky on Wednesday also introduced its Fiber All-In Box. The device combines a Wi-Fi-enabled modem, digital terrestrial TV and cable TV modem.
The growth in broadband underscores the changing habits of consumers in the digital age. Sky’s cable TV business has seen its subscriber base erode as viewers switch to other options like internet streaming platforms or satellite TV, which Sky also provides.