Converge ICT Accelerates Fiber Broadband Expansion with P23 Billion Investment in Visayas and Mindanao
Converge Information and Communications Technology Solutions Inc., a leading fiber broadband provider, is ramping up its expansion efforts in the Visayas and Mindanao regions this year. The company has announced a substantial capital expenditure of up to P23 billion, dedicated to growing its network infrastructure and tapping into underserved markets across the Philippines.
Ambitious Network Rollout Targets 900,000 New Fiber Ports in 2026
As part of its strategic initiative, Converge plans to deploy up to 900,000 new fiber ports throughout 2026. A significant portion of these ports will be allocated to the Visayas and Mindanao areas, aiming to broaden access to high-speed internet and connect more households nationwide. This move aligns with the company's goal to penetrate untapped market segments, including prepaid broadband users.
Dennis Anthony Uy, chief executive officer and co-founder of Converge, emphasized the company's focus on reaching every Philippine home. "We're trying to penetrate them because this is the market segment, especially for the prepaid segment... So that's our focus — so each Philippine home can be connected through us," Uy stated. The expansion is expected to drive projected revenue growth of eight to ten percent in 2026, fueled by increasing demand for fiber connectivity beyond major urban centers.
Limited Operational Impact from Middle East Geopolitical Tensions
Despite rising geopolitical tensions in the Middle East that could elevate global fuel prices, Converge officials have indicated that the short-term impact on their operations is likely to remain minimal. Management highlighted that fuel costs constitute only a small fraction of the company's operating expenses, thereby reducing its vulnerability to energy price fluctuations.
Benjamin Rex Emilio Azada, chief operations officer of Converge, addressed this during an online briefing on Friday, March 13. "Short term, the impact will be minimal," Azada noted. He further explained that a significant portion of the company's service fleet already utilizes electric or hybrid vehicles, providing an additional buffer against potential fuel price increases.
However, the company remains vigilant and will continue to monitor broader economic effects if geopolitical tensions persist. This includes assessing potential impacts on consumer demand and overall economic activity, ensuring adaptive strategies are in place to maintain operational stability.
