NTC okays Innove’s transfer of Touch Mobile contracts to Globe

The National Telecommunications Commission (NTC) has approved the transfer by Globe Telecom’s wholly-owned subsidiary Innove Communications of its Touch Mobile prepaid subscriber contracts to Globe. 

As a result of this assignment, all consumer mobile subscribers using both Globe Handyphone and TM brands and products will now be managed by Globe.

Company officials said this will enable Globe to build on the synergies created by the earlier integration of the Globe and Innove wireless networks, as well as meet market demand with more focused services better tailored to the needs of subscriber segments.

They added that this also paves the way for more convergent and complementary services to both Globe and TM subscribers and supports government’s thrust to promote more efficient and affordable telecommunications services.

 “We are very excited with this new development as this is a significant milestone for Globe Telecom and our subscribers,” Globe consumer wireless business head Ferdinand dela Cruz said.

He pointed out that this will not only enable the company to further strengthen its market competitiveness but will also allow Globe and TM subscribers to enjoy the benefits of superior products and services at more affordable rates.

As of end-March 2008, Globe’s combined mobile subscriber base reached 21.27 million, up 26 percent from the same period last year. Of the total, Globe prepaid accounted for 12.44 million, followed by TM with 8.12 million and Globe postpaid with 714,000 subscribers.

Net subscriber additions in the first quarter of 2008 amounted to 957,000 subscribers, of which TM comprised 65 percent. For the whole of 2007, TM’s share of net adds is 56 percent.

Globe president and CEO Gerardo Ablaza earlier said total gross adds grew 30 percent year-on-year in the first quarter while net adds remained healthy at about a million subscribers but growth was muted by the rise in churn.

He also reported that subscriber acquisition cost  went down with lower handset subsidies and SIM costs, as well as seasonally low marketing expenses in the first quarter period.

On the one hand, average revenue per user (ARPU) continued on a downward trend with multi-SIM usage, lower subscriber activity levels, strong peso and continued mass market expansion.