Converge ICT Solutions Inc. has reportedly terminated its commercial partnership with Sky Cable barely two years after it was signed, ending an alliance meant to help the Lopez-owned broadband provider reverse years of subscriber losses and financial decline. The move, reported by industry outlet Babbler, comes as ABS-CBN Corporation faces deepening financial pressures, internal leadership tensions, and a search for a new investor to raise fresh capital. Sky Cable has recorded billions of pesos in impairment charges in recent years, while its revenue continues to drop amid stiff competition and shifting consumer habits—putting its future operations under growing uncertainty.
MANILA, Philippines — In a move that signals growing challenges for the Lopez-owned telecommunications and media business, Converge ICT Solutions Inc. is reportedly severing its commercial ties with Sky Cable, bringing an abrupt end to a partnership forged barely two years ago to help the struggling broadband provider reverse years of sustained decline.
According to reports from industry news outlet Babbler, the fiber internet provider led by billionaire couple Dennis and Grace Uy has formally terminated its agreement with Sky Cable. The decision comes at a critical juncture, as Sky’s parent company, ABS-CBN Corporation, faces mounting financial pressures and is actively exploring new funding options to stabilize its operations.
ABS-CBN has not yet issued an official statement or responded to requests for comment regarding the termination of the partnership as of press time.
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The commercial agreement between Converge and Sky Cable was signed in 2024, seen at the time as a strategic lifeline for Sky. Under the deal, Sky was able to leverage Converge’s extensive pure fiber-optic network infrastructure to upgrade its service offerings. This allowed Sky to provide internet speeds of up to 1 gigabit per second, improve service reliability, launch Internet Protocol Television (IPTV) services, and better compete with major players in the market—all without having to commit massive capital expenditure to build its own nationwide fiber backbone.
The partnership was designed to help Sky recover from a long downward trend. However, the arrangement has now been cut short, raising questions about the future direction of Sky’s broadband business and its ability to remain competitive in an increasingly crowded sector.
Financial Struggles and Leadership Tensions
The reported exit of Converge coincides with a period of intense internal and external challenges for the ABS-CBN Group. Sources indicate that the company, led by former chairman and chief executive Eugenio “Gabby” Lopez III, is currently in discussions with a potential external investor referred to in market circles as a “white knight” to inject fresh capital and alleviate growing financial strains.
The need for new funding became more urgent last year. Babbler previously reported that in November 2025, ABS-CBN management sought a ₱2 billion capital infusion from the Lopez family to prevent the possibility of liquidation. The request was reportedly turned down by Oscar “Piki” Lopez, the former chairman of Lopez Inc., a decision that is said to have sparked internal friction. Reports claim that this refusal led Gabby Lopez to seek Piki Lopez’s removal from the Lopez Inc. board, a dispute that has since spilled over into the operations and governance of ABS-CBN itself.
Tensions appear to be affecting corporate decision-making. Bilyonaryo news has noted that ABS-CBN has delayed submitting the list of its board nominees ahead of its annual election scheduled for next month. Market watchers speculate that the delay could be linked to plans to include a representative from the prospective investor on the board, marking a potential shift in the company’s ownership and management structure.
The exit of Converge ICT Solutions Inc. from its partnership with Sky Cable has ushered in a phase of significant financial struggles for the latter. Over the past few years, Sky Cable has encountered substantial asset impairment losses, which have considerably influenced its overall financial health. These impairments, primarily tied to the devaluation of intangible assets and investments, reflect the challenges faced by the company in a competitive market where maintaining service quality and expanding subscriber base is imperative.
In its financial reports, Sky Cable has documented a series of impairments that highlight the monetary strain the company has been under. These losses can be attributed to various factors, including shifts in consumer behavior, increased competition, and the operational impact of the COVID-19 pandemic. The declining performance of the cable television sector, along with a shift towards over-the-top (OTT) content, has further exacerbated these financial difficulties, with the market increasingly favoring alternative viewing methods that Sky Cable has struggled to adapt to effectively.
The financial predicament is compounded by the ramifications for ABSCBN, as it attempts to manage the financial state of its affiliates amid ongoing pressures. The losses within Sky Cable not only affect its operational capabilities but also extend to ABSCBN’s financial stability, as both entities are interconnected. With significant investments in digital transition and infrastructure upgrades necessary to stay competitive, the financial losses present a critical dilemma that necessitates strategic financial planning and restructuring.
The road ahead for both Sky Cable and ABSCBN will require meticulous navigation through these financial problems, focusing on innovative strategies to recover lost ground and stabilize their market position. As such, the implications of these impairments extend beyond mere financial metrics, signaling a need for reevaluation of business strategies in an evolving landscape.
Competitive Landscape: Challenges Ahead for Sky Cable
The telecommunications market in the Philippines has become increasingly competitive, presenting significant challenges for Sky Cable in the wake of Converge ICT Solutions Inc.’s exit. The company must navigate a landscape occupied by established players as well as emerging innovators, all vying for market share in a rapidly evolving sector.
Sky Cable faces intense rivalry from key competitors such as PLDT, Globe Telecom, and even newer entrants that offer innovative services. These companies have robust capabilities, including expansive infrastructure and diverse product offerings, which allow them to effectively respond to customer demands. As customer preferences shift towards more integrated telecommunications services, the competition for customer loyalty intensifies, making it imperative for Sky Cable to enhance its service and value proposition.
Moreover, the rise of video-on-demand platforms like Netflix, Amazon Prime, and local players presents additional challenges. These platforms are altering the landscape of content consumption, as consumers increasingly favor these on-demand services over traditional cable subscriptions. As a result, traditional providers like Sky Cable must rethink their business models to retain subscribers and attract new ones, particularly younger audiences who are more inclined towards streaming services.
The declining trend in cable television subscriptions has put pressure on Sky Cable’s revenue streams. In response, the company must strategize to offer compelling content and competitive pricing, bridging the gap between traditional cable and modern streaming services. This often involves exploring partnerships with content providers or launching their own streaming platforms that can cater to the growing demand for flexibility and personalization in viewing options.
The competitive landscape poses substantial challenges for Sky Cable as it navigates the exit of Converge ICT Solutions Inc. and adapts to a market increasingly influenced by new technology and consumer preferences. Strategies focusing on innovation, customer engagement, and content diversity will be crucial for Sky Cable to thrive amid this competition.
Years of Decline and Heavy Losses
Sky Cable’s challenges date back long before the termination of its broadcast operations. The company began losing subscribers even prior to ABS-CBN’s non-renewal of its congressional broadcast franchise in 2020. The loss of the franchise accelerated the downturn, forcing Sky to discontinue its Direct-to-Home (DTH) satellite television service and pivot its focus entirely toward broadband internet services.
Despite the strategic shift and the partnership with Converge, Sky has failed to reverse its fortunes. The company has recorded billions of pesos in asset write-downs and impairment charges over the last three years, reflecting a shrinking user base and a widening gap between the value of its assets and their actual market worth.
- In 2023, Sky booked an impairment loss of ₱2.395 billion on its property and equipment. ABS-CBN also fully wrote down Sky Cable’s goodwill, amounting to ₱4.492 billion, and recognized an additional ₱1.89 billion charge on other intangible assets.
- In 2024, following a series of asset sales, impairment charges rose further to ₱2.692 billion.
- In 2025, another ₱1.311 billion was written off for assets deemed no longer economically viable. Additionally, ABS-CBN recorded a ₱2.058 billion impairment on its investment in Sky Cable, citing the rising popularity of streaming platforms and shifting consumer habits as key factors weakening long-term growth prospects.
The financial pressure has continued into 2026. For the first quarter of the year, ABS-CBN’s Cable and Broadband segment reported a steep 46% drop in revenue, falling to just ₱571 million. Net losses for the unit more than doubled to ₱301 million, compared to ₱171 million in the same period last year. Meanwhile, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) plummeted by 92% to only ₱23 million.
Converge’s decision to end the partnership adds another layer of complexity to Sky Cable’s recovery efforts. Without access to Converge’s network, Sky will face the difficult choice of either investing heavily in building its own infrastructure—a costly and time-consuming endeavor—or finding a new partner to support its broadband service.
For ABS-CBN, the exit comes as the company juggles multiple priorities: securing new capital, maintaining confidence among lenders, avoiding deeper restructuring, and stabilizing its core businesses. With subscriber numbers continuing to fall and competition in the telecommunications sector growing fiercer, the path forward remains uncertain.
Industry analysts note that the outcome of the search for a new investor and the resolution of internal governance issues will likely determine whether Sky Cable can continue operating as a viable business, or whether further consolidation or strategic changes will be necessary in the months ahead.
Stakeholders’ Perspectives
The recent announcement of Converge ICT Solutions Inc. terminating its partnership with Sky Cable has elicited a wide array of responses from different stakeholders in the telecommunications sector. Analysts and industry experts have been quick to assess the implications of this decision, highlighting both potential challenges and opportunities for the market. As Converge seeks to redefine its strategic direction, the reactions from competitors and market commentators provide valuable insights into the broader landscape.
Industry analysts have noted that Converge’s exit may disrupt the current competitive dynamics within the telecommunications space. With the partnership previously enabling enhanced service offerings and bundled packages, its dissolution raises questions about customer retention and service accessibility. The impact on Converge’s market share, particularly in urban areas, is a primary concern among experts, who suggest that the company may need to reevaluate its value proposition to maintain its competitive edge.
From a competitive standpoint, rival firms may view this development as an opportunity to capture Converge’s customer base. Some analysts suggest that competitors could leverage Converge’s withdrawal to attract clients dissatisfied with service disruptions or lack of diversification in offerings. This maneuvering could lead to intensified price competition and innovative service enhancements as firms jockey for new customers in the wake of this exit.
Market commentators have expressed cautious optimism, noting that Converge’s decision might spur greater innovation within the sector. Without being tethered to its previous partnership, Converge may explore novel technologies, alternative partnerships, and improved broadband solutions. As stakeholders watch these developments, the industry’s adaptability will be crucial in addressing the shifting market landscape shaped by Converge’s exit.
The Road Ahead for Sky Cable and Converge
The recent exit of Converge ICT Solutions Inc. from its partnership with Sky Cable marks a pivotal moment for both entities. As the telecommunications landscape in the Philippines continues to evolve, the ramifications of this decision are significant and multifaceted. For Sky Cable, the departure of a major partner like Converge signifies the need to reassess its strategic positioning in the market. The company may face challenges related to maintaining competitive service levels and customer satisfaction without the robust infrastructure provided by Converge.
In reaction to this shift, Sky Cable may be compelled to explore alternative partnerships or strengthen its internal capabilities to mitigate potential service disruptions. This endeavor could also spur innovation within their service offerings, perhaps prompting an investment in new technologies or enhancements that cater to their existing customer base. Furthermore, investing in customer outreach initiatives may be vital for reconsolidating trust and addressing any uncertainty among its subscribers.
On the other hand, Converge ICT Solutions Inc. now stands at a crossroads. The company will need to emphasize its core strengths and leverage its existing customer relationships to sustain growth. As it ventures out independently, maintaining a focus on quality and customer service will be essential in an increasingly competitive environment. This shift provides Converge with the opportunity to redefine its brand identity and potentially expand its market reach.
The future of both companies will depend largely on their strategic responses to this transitional phase. Adaptability, innovation, and proactive customer engagement will be crucial as they navigate the complexities that lie ahead. It remains to be seen how their respective journeys will unfold, but the developments surrounding Converge’s exit from Sky Cable certainly set the stage for a dynamic period in the Philippine telecommunications industry.
Sky Cable, once a frontrunner in the Philippine telecommunications industry, has witnessed a notable decline over the past few years. Several factors have contributed to this downturn, significantly impacting its operational efficiency and market standing. One of the pivotal reasons behind this decline was the loss of its broadcast franchise, which has led to a reduction in the company’s ability to offer competitive content. Without a valid franchise, Sky Cable struggled to provide a diverse range of channels and services that its subscribers had come to expect.
The shift from direct-to-home (DTH) satellite services to more modern and versatile internet-based streaming options has further eroded Sky Cable’s subscriber base. Consumers increasingly favor on-demand services from various online platforms, offering more flexibility and access to a broader range of content, thus diminishing the appeal of traditional cable offerings. This trend has been characterized by a growing preference for content consumption that aligns with a viewer’s schedule rather than the fixed programming schedules of typical broadcast services.
Years of subscriber decline preceding the partnership with Converge ICT Solutions Inc. have exacerbated the situation for Sky Cable. As competing services gained traction, existing customers opted to switch to providers that met their evolving demands for convenience and pricing. The cumulative effect of these challenges has positioned Sky Cable in a precarious situation, leading to further operational restrictions and reduced revenue streams. In this context, understanding the factors contributing to the decline of Sky Cable is essential to grasping the broader implications of Converge’s exit and what the future might hold for both entities. By considering these elements, stakeholders can better navigate the changing landscape of the telecommunications industry in the Philippines.
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