Converge ICT Earmarks $250M Investment to Nationwide Expansion

Converge ICT, the country’s premier pure end to end fiber internet service provider, received a multi-million-dollar investment from Warburg Pincus, a private equity firm based in the United States.

Converge ICT has been aggressively expanding its fiber infrastructure with the aim of providing Filipinos access to the more reliable fiber internet connection. The $250 million or P12.8 billion investment will be earmarked on rolling out more fiber connections nationwide.

"Since going full throttle with our fiber network roll-out and package offerings, the change in overall Philippine performance has been noticeable," said Dennis Uy, founder and president, Converge ICT. "In 2018, the average connection has risen to 18Mbps. We don't take full credit but the company’s contributions have been undeniable."

This is the Warburg Pincus' first investment in the Philippines. One of the world's biggest equity firms has $20 billion invested in Asia and about $65 billion in assets under management.

"We are excited about the country’s young, digital-savvy population and its thriving services industries, which have created an outsized need for connectivity and will create explosive growth in the broadband space," said Saurabh Agarwal, managing director, Warburg Pincus. "Converge ICT is a remarkable business and growth story and I am confident that it will continue to achieve significant growth milestones and solve the ever-increasing connectivity needs of the country."

Converge ICT is looking at capturing 30% of the country's broadband market in the next few years. With this investment, Converge ICT will be able to fastrack the construction of its $1.8-billion nationwide internet backbone. The current rollout includes a $70-million domestic submarine cable with 20 landing stations across the Philippines. The Luzon backbone is expected to be completed by the first quarter of 2020.

"Converge ICT is the only pure end-to-end fiber internet provider in the country with all-in house capabilities," said Uy. "We have been investing heavily on innovations that would move the broadband market forward so we can be on par with our neighbors. We have rolled out 400Gbps per channel in the past."

At present, Converge ICT is looking at doubling its half-a-million subscribers by next year. Seventy percent of the company's customer base are first-time fixed broadband service users and Uy plans to increase that with more expansions in the coming months.

Converge ICT Extends Expansion in Baguio

Converge ICT Solutions (Converge ICT), a major provider of telecommunication and cable television services in the Philippines, had expanded its reach in the urban landscape Baguio.

Its partnership with Benguet Electric Cooperative Inc. (BENECO), Converge ICT has always wanted to provide a faster and more reliable connection in the northern part of Luzon. BENECO is an electric cooperative which provides electricity to the city of Baguio and Benguet Province. It is the first electric cooperative to enter into a partnership with a company such as Converge in order to provide internet to its member-consumers. Plans for Baguio expansion has already been in place since 2017.

Converge ICT has been operating in Baguio since 2018 and further expansion is in the works since the first half of 2019.
"Customers in Baguio have long been waiting for an alternative internet provider that can give them a better service," said Chief Operating Officer Jesus Romero. "Converge ICT's partnership with BENECO is equitable as well because BENECO’s electric poles are infrastructure-ready for use, which means that we can easily fast track the expansion."

BENECO also benefits from the use of Converge ICT's fiber-optic infrastructure. This allows them to comply with the directive from the National Electrification Administration and the Department of Information and Technology to tap electric cooperatives to bring internet to clients assisting the government in achieving its goals with National Broadband Plan.

Baguio may be a challenging location for laying down fiber-optics because of its terrain, which makes the partnership with BENECO feasible. The combined expertise of Converge ICT's technical team and BENECO’s familiarity with the terrain made the work more manageable.

The plans and packages Converge ICT is offering to Baguio residents and establishments include the Converge fiber plans FiberX 1500, 2500, 3500, and Fiber Xtreme 4500 and 7000.

Converge ICT also offers reasonable plans specially geared towards the small and medium enterprise segment. These include the iBiz 10mbps at Plan 4000, iBiz 20mbps at Plan 6000, iBiz 30mbps at Plan 9000, iBiz 40mbps at Plan 12,000, and iBiz 50mbps at Plan 15,000.
The enterprise segment will get dedicated internet access with business broadband and wholesale IP transit. For value added services, enterprises will have data center services at two co-locations in Luzon.

Converge ICT has been providing Baguio with a faster connection than before in the following areas: Apugan-Loakan, Atok Trail, Bakakeng Central, Bakakeng North, Balsigan, BGH Compound, Camp 7, Camp 8, Dontogan, DPS Compound, Engineer’s Hill, Engineer’s Hill-Teachers Camp, Ferdinand, Gabriela Silang, General Luna – Salud Mitra, General Luna Upper, Green Water Village, Hillside, Imelda Marcos, Liwanag-Loakan, Liwanag Proper, Loakan Proper, Marcoville, Military Cut-off, Philam, Poliwes, San Vicente, Santo Tomas Proper, Scout Barrio, Sta. Escolastica, Sto. Rosario, and Upper & Lower Dagsian.

The start of operations in the remaining areas are already in the works and will be fully serviceable in the coming months.

For more information on Converge ICT, visit https://www.convergeict.com/.


About Converge ICT Solutions

Converge ICT Solutions is the leading fiber internet and digital consumer-centric services provider in the country. It is the first to run a pure end-to-end fiber internet network, providing Filipinos simple, fast, and reliable internet connection. Converge ICT Solutions is ISO and CE2.0 Certified.