Angeles City—Converge ICT Solutions Inc., the country’s pure end-to-end fiber internet service provider, said it is unfazed by the 9.4-percent decline in its share price during its initial public offering (IPO) on Tuesday.
Converge announced after its listing ceremony on Monday that it will spend P29 billion for its capital expenditures (capex) program in the next year and a half.
Matthias Vukovich, chief financial adviser of Converge, said in a report that his company “plans to deploy about P29 billion or $600 million of capex over the next 18 months to roll out its network to tens and of thousands of communities across the Philippines.”
He said this would “help the company meet its target of reaching about 55 percent of households nationwide by 2025.”
Francisco Villanueva, Clark Investors and Locators Association (CILA) and chair of the Metro Angeles Chamber of Commerce and Industry Inc. (MACCII), said Converge’s initial slump is expected as this is also seen in other publicly listed companies. But he said he remains optimistic because Converge has “sound fundamentals and business strategy,” which will allow the company to bounce back.
Villanueva said the pandemic has affected businesses but Converge is thriving because of the “new normal” which calls for work-for-home schemes, social distancing, distance learning and e-commerce and the power of the internet is making all this possible.
He also said other companies fight over wireless technology but Converge is virtually all alone and has established a foothold in the fiber optic technology.
This feat did not go unnoticed as Converge bagged back-to-back awards at the 11th Asia CEO Award (ACA) on October 13.
Converge founder and chief executive officer, Dennis Anthony H. Uy, received the Entrepreneur of the Year Award while Converge ICT also received the Circle of Excellence Technology Company of the Year award in the same event. The ACA wins are back-to-back with the company’s appearance as a finalist in the CX Asia Excellence Awards.
The ACA recognizes the contribution of outstanding accomplishments of individuals and organizations in uplifting the national economy. It is the largest business awards in the Asia-Pacific region.
This development has definitely put on track Uy’s agenda of achieving digital transformation in the country with faster internet speed through fiber to the home internet connection.
“The awards are a testament to the Converge philosophy of innovating with purpose,” said Uy. “The connections we’re making are powering the presence of Filipinos on the global stage. We will stay on course, keeping focused to give our consumers stable, reliable, fast, and better internet,” he stated.
Converge ICT laser-focused its services on fiber end-to-end technology with the goal of bringing technology to more households in the Philippines.
“At present, only a 7-percent market penetration in terms of fiber optic high speed internet connectivity is served,” Uy said. “We want to serve the underserved. This is my passion.”
“Sad to say, we have the least cell site towers in Southeast Asia as compared to Ghana and Myanmar in terms of cell site penetration.”
As of today, Uy said the Philippines has 70 million Facebook users, but only 1.5 million Filipinos have access to high speed internet.
In expanding the Converge ICT network for the widest fiber optic coverage, Uy said he brings in the latest technology to expedite the process. “I bring the latest technology called micro trenching.”
“We cut the road by two inches and restore it on the same day. This is the first in the Philippines and we have 13 machines.”
Micro trenching is the process of installing small conduits within the edges of the sidewalk to house fiber optic cabling. It is described as a quick, low-impact deployment method as fiber optic cabling is inserted into a small slot-cut trench without damaging or disrupting existing infrastructure.
Uy said Converge’s subsea cable will be finished by the first quarter of 2021 which will be connected to the Visayas and Mindanao.
The network upgrades also aim to aid e-education and e-health service deliveries for Filipinos.
For homes, young entrepreneurs and startups, big enterprises, and government agencies—Converge aims to deliver internet speed that matches the creativity and drive of Filipino customers.
“My dream is to bring this digital landscape throughout the country. I will build this digital highway for the entire country to benefit all sectors of the country.”