Converge ICT Solutions Inc. unveiled on Wednesday an aggressive fiber optic rollout plan that will see its Luzon-based broadband service establish a nationwide presence in under five years.
Dennis Uy, Converge ICT president and CEO, said investments over the period would reach about $1.8 billion, which will help the company exponentially grow revenues and reach 13 million of the 22 million households in the country.
It will do so with big-name partners. Converge ICT, also on Wednesday, announced partnerships with KT Corp., Korea’s largest telco, for the rollout of over 1,700 kilometers of fiber cables in North Luzon. It also partnered with Fibernet Konstrukt for South Luzon (1,098 km), Visayas (600 km) and Mindanao (900 km).
For a domestic submarine backbone, Converge ICT tapped TE Connectivity Subcom.
“We want to help customers, we want 10 times the escalation of our rollout,” Uy said, referring to their intention to move fast in this space.
He said revenues for 2018 alone were expected to exceed P5 billion, double the figure it posted last year. The company is looking to finance the rollout through a mix of equity and debt. He said UBS Philippines had been hired as financial adviser.
“We have set our sights to bring the best internet connectivity by starting in Metro Manila and some key provinces in Luzon. By going nationwide, we can do more rollouts and more installations in other islands in the Philippines,” Uy said in a separate statement released on Wednesday.
Converge ICT has steadily built up a customer base by providing high-speed broadband internet at lower prices than incumbents PLDT Inc. and Globe Telecom.