Globe to spend P1B for acquisition of TM subscribers

MANILA, Philippines- Globe Telecom on Thursday said it would be spending some P1 billion to acquire Touch Mobile subscribers currently being serviced by Innove Communications Inc. For every TM subscriber that will be transferred to Globe from Innove, a wholly-owned subsidiary, Globe will pay P120. “This represents the acquisition cost that Globe will be paying Innove. Aside from acquisition cost, there are other payments as well including retention bonus for TM loyal subscribers if, let’s say for a year, the subscribers are still hooked up with TM," Globe chief financial officer Delfin Gonzalez told reporters at a press briefing. But more importantly, Gonzalez said Globe’s cellular market share is expected to widen overtime as a result of the transfer, which had been approved by National Telecommunications Commission last week. “With the integration of the subscriber base of TM and Globe, we will have more compelling promos that will attract new subscribers. So, eventually, that will increase the subscriber base and hopefully we will see some big leap in market share," said Gonzalez. Globe closed the first quarter with 21.3 million subscribers. Of which, TM subscribers stood at over eight million. Globe reported that its market share stood at 38 percent in the same period. Rival Philippine Long Distance Telephone Co. (PLDT) still leads the race with 55 percent while Sun Cellular retained its third spot with seven percent share of the cellular market. The migration will also boost the company’s revenues as Globe can now extend its various promotional offerings to TM subscribers. Moreover, access charges between calls from and to both TM and Globe will be removed thus, lowering prices for both Globe and TM. “The migration allows us to be more flexible in terms of tariffs and promotional offerings. It should help our revenues as well," Gonzalez said. - GMANews.TV