Converge, foreign partners set to complete new undersea cable by 2024

Converge ICT Solutions Inc. and its partners are on track to activate a 5,000-kilometer submarine cable system linking the Philippines, Hong Kong, China, Thailand, East Malaysia and Singapore by 2024.

In a statement on Tuesday, the consortium behind the South East Asia Hainan-Hong Kong Express Cable System (SEA-H2X) project expressed confidence it would meet the deadline to start operations.

Converge, along with China Mobile International Limited, China Unicom Global and PPTEL SEA H2X Sdn. Bhd., tapped HMN Technologies Co., Ltd. (HMN Tech) to build the undersea cable.

The international cable system will land in La Union, Philippines; Tseung Kwan O, Hong Kong; Hainan, China; Songkhla, Thailand; Kuching, Malaysia; and Tuas, Singapore.

The SEA-H2X cable, which will comprise at least 8-fiber pairs between Hong Kong and Singapore, has a design capacity of 160 terabits per second to address the increasing bandwidth requirement in the region.

The project, which also has options to extend to Vietnam, Cambodia, West Malaysia and Indonesia, is seen to provide future support for 5G adoption as well.

“In Converge, we have a dream, and that is to make the Philippines a digital transit hub in Asia. The SEA-H2X project is one step towards that dream where we hope to create a more vibrant industry that can position businesses for success, provide employment, and continually improve the lives of Filipinos over time,” Converge chief operations officer Jesus Romero said.

More investments coming

Recently, Romero told reporters their interest to invest in additional infrastructures such as undersea cable systems and data centers in order to accommodate the growing needs for connectivity of its customers.

“I think two cables will not be enough. We are still looking at further investments as they come along,” he said, referring to the SEA-H2X project and Bifrost Cable System.

This year, Converge earmarked P26 billion to P28 billion in capital expenditures this year to expand its network and deploy additional fiber ports. This is higher compared to P25.2 billion spent last year.

The allocated spending is seen to generate 50-percent revenue growth, 55-percent earnings before interest, tax, depreciation and amortization margin and 20-percent return on invested capital for the company.