Converge out to challenge Cignal, Sky Cable in pay TV

Pampanga-based tycoon Dennis Anthony Uy will infiltrate the pay TV segment soon to challenge the dominance of Cignal Cable Corp. and Sky Cable Corp.

Uy’s Converge ICT Solutions Inc. will launch direct-to-home (DTH) services within the year, giving subscribers another option when selecting their pay TV provider.

The pay TV segment is currently dominated by Cignal, a unit under Pangilinanled MediaQuest Holdings Inc., and the Lopez-owned Sky Cable.

Uy said the franchise granted to Converge allows it to offer DTH services to the public. The company can emulate the business model of Cignal Cable and Sky Cable where pay TV is sold in a bundle with broadband connection.

However, Uy said Converge will keep the cost of its DTH services low, eyeing to launch it at P99 per month. When compared, Cignal offers a basic plan of P520 a month, while Sky Cable sells its lowest subscription at P500 monthly.

“We just want to let you know that we have a directto-home franchise already, [and] we need to offer that soon,” Uy said.

At present, Converge serves as the Philippine distributor of Pacific Kabelnet’s Vision, providing subscribers with access to domestic and foreign content at P99 for 61 channels and P299 for 88 channels.

If Converge proceeds with its pay TV foray, Uy said the company will deploy satellites to reach underserved areas that may be challenging for Cignal and Sky Cable to penetrate.

Meanwhile, Uy is keeping his doors open for any possible offer from the Lopezes to acquire Sky Cable. Last week, telco giant PLDT Inc. and Sky Cable’s parent ABSSky CBN Corp. surprised the business community when they announced the termination of PLDT’s buyout of Sky Cable.

The sale, estimated to cost P6.75 billion, was in its final stages of completion and was poised to materialize when it hurdled the antitrust review in January. Supposedly, Sky Cable will close its pay TV on today, to be followed by the transfer of broadband assets to PLDT.

Uy said he has yet to receive any offer from the Lopez Group to salvage the Sky Cable buyout, but added he is willing to invest in the company if it will sustain the connectivity services of subscribers.

When Congress denied ABS-CBN’s bid for a fresh franchise in 2020, it also stripped Sky Cable of the right to offer DTH services, a development that turned the company into a losing business for the Lopezes.