ABS-CBN Broadcasting Corporation, the broadcast arm of the Lopez Group of Companies, formed a business alliance with Dream Satellite TV of Philippine Multi-Media System, Inc., learned Monday.

The two groups signed an exclusive agreement to form a business partnership in the wireless pay TV business in the Philippines. The partnership will also involve Dream Satellite TV and the Lopez Group's SkyCable.

The deal is expected to provide Dream Satellite TV subscribers access to ABS-CBN's programs while giving SkyCable the flexibility of offering multi-tiered market pricing using Dream's set-top boxes, digital technology and experience.

Both groups are expected to generate cost efficiencies and economies of scale in various areas of operation.

With the completion of the agreement, ABS-CBN clearly establishes its dominance in the broadcast and pay TV industries with the expanded nationwide presence it will derive using Dream TV's satellite platform.