Converge ICT Seeking Bank Loans for $1.8B Infrastructure Buildup

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Angeles City―Converge ICT Solutions Inc. is expanding its operations to the Visayas after a successful venture in Luzon but it will require $1.8 billion in the next three years to support infrastructure works, a top executive told reporters here Monday. 

Converge ICT president and chief executive Dennis Uy said talks with various banks were ongoing to cover the required funding for the fiber-optic technology.

“This is a huge investment for us… In fact, we are securing loans from different banks,” said Uy during a news conference at Namari Restaurant in Barangay Balibago. He said the plan was to roll out the fiber-optic infrastructure to achieve one million ports nationwide.

Uy said Converge ICT spent $12 million a year to establish its fiber-optic infrastructure backbone in La Union, Cagayan, Nueva Vizcaya and Nueva Ecija. He said the Luzon backbone was expected to be completed by the second quarter of 2020. 

Converge ICT started its wireless internet connections using fiber-optic technology for the Command Center of Angeles City. The company is now serving areas as far as Naga City, Legazpi City and Sorsogon in the Bicol Region.

“All subscribers of Converge in Sorsogon will be serviced at the end of this year,” Uy said.

He said Converge ICT has the advantage of fiber-optic technology compared to other wired services.
“Consumers are looking for an alternative high-speed internet connection and good service provider because of poor and expensive internet services. That is why Converge ICT is offering fiber-optic technology. Fiber has a speed of light [as] the technology evolved,” Uy said.

Uy said that 30,000 lines became available for service in Legazpi City while 20,000 lines opened for Naga City starting August.
“Converge ICT capital investment for this year is hitting about $350 million including the first phase of expansion,” Uy said.

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