Converge ICT 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” – 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.” – Uy added.
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.” -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.” – Agarwal added.
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.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.