Converge spending up to P19B in 2024 to expand network
MANILA, Philippines — Earmarking at least P17 billion to fund network infrastructure projects, Converge ICT Solutions Inc. is looking at increasing its total revenues by 7 percent to 8 percent this year on the back of heightened demand for fiber connectivity.
The top line figure growth projection will be driven by its residential and enterprise segments, which are estimated to rise by 6 percent and 12 percent, respectively.
Building on this optimistic outlook, the internet service provider has allotted P17 billion to P19 billion in capital expenditures this year—or nearly double of what it spent in 2023.
A portion of the budget will go to the company’s international subsea cable projects—Bifrost Cable System and the South-East Asia Hainan-Hong Kong Express Cable System (SEA-H2X)—which are set to go live this year.
READ: Converge starts work on trans-Pacific subsea cable system
The 15,000-kilometer Bifrost project will connect the Philippines to Singapore, Indonesia, Guam and the west coast of North America. It has a design capacity of up to 15 terabits per second (Tbps).
Article continues after this advertisementResidential, enterprise business
The 5,000-km SEA-H2X project, which has a design capacity of 160 Tbps, covers the Philippines, Hong Kong, China, Thailand, East Malaysia and Singapore.
Article continues after this advertisementLast year, Converge’s net income climbed by 22 percent to P9.1 billion, supported by a 5-percent increase in revenues totaling P35.4 billion.
Bulk of the top line was accounted for by the residential segment, which rose by 3 percent to P30.28 billion. The enterprise business, meanwhile, saw its revenues increase by 20 percent to P5.08 billion.
As of end-December 2023, Converge already had 2.13 million subscribers, comprising 2.01 million postpaid customers and around 114,800 prepaid consumers.
READ: Converge grows 9-month income on subscriber base expansion
Converge noted that its subscriber count for low-cost products—including Surf2Sawa—reached 174,672 as of end-December, exceeding its target of 120,000.
Converge-Globe fiber optic network
Surf2Sawa allows subscribers to tap fiber internet for as low as P50 for a one-day service and up to P700 for a 30-day connection.
Converge is currently working on its second joint fiber optic network project with Globe Telecom Inc. The 209-km fiber project, which links Tacloban and Maasin via Baybay in Leyte, is set to be completed by the third quarter this year.
Recently, the internet service provider also inked a master facilities provisioning agreement with DITO Telecommunity Corp. The deal allows the parties to share terrestrial and submarine fiber optic cable assets to enhance network redundancy.
“We want to leverage our respective existing facilities through this resource sharing agreement to bring us closer to our goal of empowering every Filipino home with quality broadband connectivity,” Converge CEO and cofounder Dennis Anthony Uy said. INQ
