CONVERGE ICT Solutions, Inc. said its fixed broadband service may arrive in the Visayas and Mindanao regions by 2021 as it aims to start within the year the buildout of its fiber backbone outside Luzon.
In a media roundtable interview in Pasig City Thursday, the fiber broadband provider said it is currently evaluating bid submissions from submarine cable companies to expand its fiber reach in the Visayas and Mindanao regions.
“Siguro ’yung VisMin is not going to happen in the next 24 months. Kasi it takes about 24 months to build eh (Maybe going to VisMin won’t happen in the next 24 months because it takes about 24 months to build),” Converge Chief Operating Officer Jesus C. Romero said.
“We’ll start that hopefully soon. Then after that, we can operate,” he added.
Mr. Romero said the company is now waiting for the “best and final offer” of about three foreign bidders that will build its interisland fiber network in the Visayas and Mindanao regions.
“The bidders have to give their best and final offer. After those are submitted, we will have to choose which one. After we choose, then we award, then we start to mobilize,” he said, adding the completion of this process “has to be” within the year.
Converge currently has its fiber laid out in most of Luzon, covering almost all of Metro Manila and continuously expanding to Bicol and Benguet.
Earlier reports revealed that the company, owned by Pampanga-based businessman Dennis Anthony H. Uy, has secured a $250.4-million equity funding from United States-based private equity firm Warburg Pincus.
While Mr. Romero did not confirm the deal, he said Converge is always seeking to find funding for its expansion plans. These include the backbone rollout and acquisition of transmission and last mile equipment to make its services available to more areas across the country.
“The company has always said we’re looking for ways to fund expansion,” he said. “When you look at (the company’s) potential spending to fuel growth, you have cash flow, you can avail of debt, or you can try to raise money from equity infusion.”
Mr. Romero said the company is continually focusing on its fixed fiber broadband and doesn’t plan to tap the mobile telecommunications market as it sees a huge potential in the “underserved market” of the broadband segment.
“I think ’yang mobile, pagdating ng third mobile player, market share grab na lang ’yan eh (I think for mobile, when the third player arrives, it will all be market share grabbing)… Maganda rin na doon ka na lang sa (It’s better to be in the business of) something that’s growing, something that’s underserved, rather than trying to kill each other on a mature market,” he said.
Converge said last year it is pricing its expansion at $1.8 billion in the next five years, which will cover extending its broadband network to Luzon, Visayas and Mindanao.
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