Converge reportedly exits Sky Cable fiber deal

The two companies have denied a breakup.

Converge x Sky Cable

Sky Cable losses top PHP 6B

Converge ICT Solutions Inc. is reportedly walking away from its fiber network deal with Lopez-owned Sky Cable.

Bilyonaryo's Babbler column reported that Converge terminated the commercial agreement less than two years after it took effect.

ABS-CBN did not immediately comment, but the two companies later issued a joint advisory denying any breakup, stating the arrangement signed on July 22, 2024 "remains in full force and effect" with no changes to subscriber services.

The reported split adds pressure to the Lopez Group, which former ABS-CBN chairman and chief executive Eugenio "Gabby" Lopez III leads and which is said to be courting a potential white knight investor amid mounting financial strain.

Sky Cable's troubles predate the 2020 congressional denial of ABS-CBN's franchise renewal, though that decision accelerated its decline by ending its direct-to-home satellite business and pushing it toward broadband.

The 2024 deal with Converge was meant to arrest the slide, giving Sky Cable access to pure fiber infrastructure capable of delivering gigabit speeds and IPTV services without requiring heavy capital spending on its own network.

The turnaround effort has yet to gain traction. Sky Cable has continued losing subscribers, booking impairment losses of PHP 2.395 billion in 2023, PHP 2.692 billion in 2024, and PHP 1.311 billion in 2025 on assets deemed unrecoverable.

What do you think?

Via: Bilyonaryo