Converge ICT earmarks P12.8B for nationwide expansion
Credit to Author: The Manila Times| Date: Sun, 06 Oct 2019 16:16:57 +0000
CONVERGE ICT, the country’s premier pure end-to-end fiber internet service provider, received a $250 million or P12.8 billion investment from Warburg Pincus, a private equity firm based in the United States.
Converge ICT has been aggressively expanding its fiber infrastructure to provide Filipinos access to more reliable fiber internet connection. The huge investment will be earmarked to roll 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 rose to 18Mbps. We don’t take full credit but the company’s contributions have been undeniable,” he said.
This is Warburg Pincus’ first investment in the Philippines. One of the world’s biggest equity firms, it 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, Warburg Pincus managing director.
“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,” he added.
Converge ICT is looking at capturing 30 percent 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. 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,” said Uy.