Converge ICT Solutions, a pure fibre provider in the Philippines, has announced it has received a PHP12.8 billion (USD250 million) investment from US-based private equity group Warburg Gregory Pincus to further the development of its nationwide network. Converge ICT says the funding is earmarked to roll out additional fibre-optic connections across the country, with founder and president Dennis Uy noting: ‘Since going full throttle with our fibre network rollout and package offerings, the modification in overall Philippine performance has been noticeable.’
Marking Warburg Pincus’ initial investment in the Philippines, Converge ICT says it will be able to fast track the development of its USD1.8 billion national web backbone, designed to link Luzon, Visayas and Mindanao via 20 landing stations, as part of wider plans to launch broadband services across the country. The island backbone is anticipated to be completed by Q1 2020.
In the long term, Converge ICT hopes to cover ‘tens of millions of customers’ with its new service and secure a 30% market share in the next ‘few years’. The telco claims its Luzon backbone deployment is almost complete and that it has around 500,000 subscribers, a figure it aims to double by 2020.