Converge confirms talks with Elon Musk’s spaceX
Fiber internet company Converge ICT Solutions Inc. confirmed on Monday talks with American tech billionaire Elon Musk’s Space Exploration Technologies Corp. (SpaceX) but said discussions to form a partnership were still premature.
Converge, led by founder and CEO Dennis Anthony Uy of Pampanga, said satellite technologies, including those of SpaceX, “are among those new technologies being explored by Converge to bring high-speed broadband to far-flung areas in the country.”
Shares of Converge rose 5.86 percent to P18.78 each on Monday’s close as the market absorbed the news.
The Inquirer reported over the weekend that Converge, one of the country’s biggest fiber internet companies, and SpaceX representatives met several times to discuss a potential venture.
“It is still very premature to talk about a possible partnership between Converge and SpaceX at this stage,” Converge told the Philippine Stock Exchange on Monday.
“Converge assures the Exchange and its investors that it will promptly make the necessary disclosures should there be any material developments in its exploratory talks with possible partners,” it added.
SpaceX is deploying thousands of broadband satellites under its ambitious Starlink project.
Through Starlink, the company is building a constellation of broadband satellites capable of beaming down reliable high-speed internet services around the world.
Starlink satellites will also be deployed closer to the Earth than traditional satellites, resulting in a more stable internet connection. It expects “near global coverage of the populated world in 2021,” information on its website showed.
While capable of reaching remote areas, satellite broadband is typically more costly than alternatives such as mobile and fiber internet services provided by PLDT Inc., Globe Telecom and Converge.
Still, an Inquirer source with direct knowledge of the matter said Converge viewed satellite internet as a complementary business capable of serving customers where its fiber lines are unavailable.
Converge, which launched a record P29-billion initial public offering last year, is set to go nationwide this year with the activation of a 1,300-kilometer undersea internet cable that will link Luzon, Visayas and Mindanao. INQ
