The cable unit of ABS-CBN Corp. signed a deal with Luxembourg-based global satellite operator to roll out direct-to-home satellite television service in the Philippines.
Under a multi-year, multi-transponder agreement, Sky Cable Corp. will broadcast DTH satellite TV channels via SES satellites at 108.2 degrees East—the SES-9 and NSS-11 satellites.
The contracted capacity will enable Sky Cable to effectively roll out a nation-wide DTH satellite TV service across 251 cities and municipalities in the Philippine archipelago, complementing its existing cable offerings.
“The geography of the Philippines presents a unique set of challenges for fiber or terrestrial connectivity. Our satellites are able to overcome these limitations and provide comprehensive and high-powered coverage over the entire archipelago including under-connected areas in the Philippines,” Deepak Mathur, senior vice president Commercial, Asia-Pacific and the Middle East at SES said.
“We are glad to support Sky Cable as they use both ground and space infrastructure to expand their TV audience reach. This latest contract on SES-9 shows the continued momentum of serving our prime DTH neighbourhoods on our largest satellite dedicated for Asia-Pacific,” he added.
SkyCable chief operating officer AntonioVentosa said the company tapped SES’s global expertise and extensive satellite footprint after venturing into providing satellite TV services for the company’s growing subscriber base.
“We are confident that with our partnership with SES, we will be able to deliver content seamlessly to potential new customers all across the country,” Ventosa said.
Sky Cable currently offers cable TV services for 55 High Definition channels to 800,000 subscribers in 19 cities and municipalities in the Philippines.
Sky Cable’s new satellite service will compete with Cignal TV, Dream Satellite TV and GSat, which all offer DTH services nationwide.
Sky Cable earlier said the estimated cost of starting the project would be P250 million, with an initial capital outlay of P122 million to cover the purchase of various equipment, while the remaining P130 million would serve as working capital.
The company projected to acquire 49,500 subscribers in first year of operation and increase it to 864,600 subscribers in 10 years.
Sky Cable proposed a one-time installation fee of P3,990 and a charge P390 for DTH prepaid card for 30 days.
Sky Cable said it anticipated to post a gross revenue of P69.42 million in first year operation, with a net loss of P290.22 million.
It said by the 10th year of operation, it expected to post a profit of P467 million out of P2.97 billion in gross revenues.
SkyCable said the financial projection would be “attainable,” citing the 2.53 million subscribers for cable and DTH services in the country, or mere 17 percent of the 14.17 million TV households.
This means 83 percent of the TV households or 11.76 million households remain connected to CATV or DTH services.