The National Telecommunications Commission (NTC) has approved the network sharing agreement between Globe Telecom Inc and ABS-CBN Corp, paving the way for their “media convergence” strategy.
In separate letters to Globe, its unit Innove Communications Inc and ABS-CBN Convergence Inc (ABS-C), NTC Commissioner Gamaliel Cordoba said the regulator approved the network sharing agreement and co-use of subscriber identification module (SIM) numbers.
The SIM provides a unique number assigned to a telecom subscriber, distinguishing them from others on the network.
“In line with the Commission’s thrust of promoting sharing of passive and active network infrastructure to reduce cost of public telecommunication services and reduce the effects of radio base stations to the environment, please be informed that the Commission acknowledges the network sharing agreement entered into by your company,” Cordoba said.
The NTC also approved the co-use by ABS-C of these number blocks assigned to Globe: 0937-1XXXXXX, 0937-2XXXXXXX and 0937-3XXXXXX.
Cordoba, however, said the regulator’s approval is subject to the condition that the quality of service and service performance should not be adversely affected, and that the prescribed quality of service and service performance standards are strictly observed and complied.
Earlier, Globe president Ernest Cu said co-use of frequencies will provide additional capacity and coverage without wasteful duplication of resources and investments, consistent with the objectives of the NTC to provide efficient telecommunications service to the public.
Globe and ABS-C will determine the appropriate fees to be charged for the former’s service within six months from the commercial launch of the latter’s service.
Earlier, ABS-CBN chairman Eugenio Lopez III said the company will invest P2-3 billion to roll out its mobile service over the next three years.
He said the network will launch ABS-CBN Mobile SIM this year so subscribers can access content for free. ABS-CBN will buy capacity from Globe for its mobile service under a five-year contract.