In a bold move to connect the unconnected, Converge ICT Solutions Inc. is charting a course to dramatically expand its fiber optic network, targeting 11 million ports by 2027, with a significant focus on rural areas.
This ambitious expansion aims to bridge the persistent digital divide, bringing high-speed internet to some of the most underserved communities in the Philippines.
Driven by a vision to empower remote regions, Converge CEO and co-founder Dennis Anthony Uy revealed plans to aggressively deploy fiber lines in third and fourth-class municipalities over the next two years.
“We see a tremendous opportunity to provide reliable broadband connectivity to areas in the Visayas and Mindanao where access is currently limited,” Uy stated. “Our goal is to reach four million subscribers by 2027, and expanding into these underserved markets is crucial to achieving that.”
Converge to install two million new ports nationwide
To realize this vision, Converge is committing to installing at least two million new ports nationwide. This significant infrastructure investment builds upon their existing network of 8.96 million fiber lines, of which 2.56 million are currently serving residential and business customers.
The company’s commitment is reflected in a substantial capital expenditure plan, with investments projected to reach between P20 billion and P25 billion by 2025. A significant portion, P12 billion, is earmarked for network expansion, demonstrating Converge’s dedication to laying the groundwork for widespread connectivity.
Additionally, P5 billion is being invested in the construction of two new data centers, and P7 billion is dedicated to the completion of two pivotal subsea cable systems.
These subsea cables, the Bifrost Cable System and the South-East Asia-Hainan-Hong Kong Express Cable System, are slated for activation this year, promising to significantly boost Converge’s data transfer capacity.
The company successfully landed the Southeast Asia-Hainan-Hong Kong Express Cable System (SEA-H2X) on Philippine shores in September last year, thus solidifying its role in the international data exchange network.
The undersea cable system, designed with a massive 160 terabits per second capacity, promises faster internet and more efficient data transfer, connecting the country to six other critical points across the Asia-Pacific region.
Simultaneously, the construction of new data centers in Caloocan City and Pampanga will bolster the company’s internal data storage capabilities, ensuring a robust and reliable network infrastructure.
A strategic approach that extends beyond organic growth
Benjamin Azada, Converge’s Chief Commercial Officer, expressed confidence in the company’s trajectory, stating, “We are confident that our strong portfolio and expanding coverage will enable us to reach our target of four million customers by 2027.”
This optimism is supported by the company’s impressive growth figures, with its subscriber base expanding by 20% to 2.56 million in 2024, up from 2.13 million in 2023. This growth is attributed to the success of its diverse product offerings, including the flagship FiberX, the budget-friendly BIDA Fiber, and the affordable Surf2Sawa.
Converge’s strategic approach extends beyond organic growth.
Robert Yu, the company’s Chief Financial Officer, revealed that the company is now also actively seeking strategic partnerships, mirroring its asset-sharing agreement with Sky Cable Corp. “We are open to collaborating with partners to optimize the utilization of our fiber network,” Yu explained, highlighting the company’s willingness to accommodate tenants on its infrastructure.
Financially, Converge is in a strong position, with robust revenue streams fueling its expansion. Yu indicated that while the company is currently well-funded, it may consider returning to the bond market if interest rates become more favorable. This strategic financial planning underscores the company’s long-term vision and commitment to sustainable growth.
The company’s financial performance reflects its successful expansion efforts, with net income surging by 19% to P10.81 billion in 2024, driven by a 15% increase in revenue to P40.61 billion. This growth is a testament to Converge’s ability to capitalize on the increasing demand for reliable internet connectivity across both residential and enterprise sectors.
As Converge continues to push the boundaries of digital inclusion, its ambitious rural expansion promises to transform lives, empower communities, and fuel economic growth in the Philippines. By bridging the digital divide, Converge is not just laying fiber optic cables; it’s laying the foundation for a more connected and prosperous future.