LISTED fiber internet service provider Converge ICT Solutions, Inc. said it expects delays in completing its international subsea cable projects.
“Imagine each country, you need to get some permits. It depends on the area, especially when you are passing Indonesian waters. It is not easy to get access to Indonesia,” Converge Chief Executive Officer (CEO) Dennis Anthony H. Uy told reporters last week.
“There is a bit of delay but the Davao to Singapore, there is a possibility that we will finish this year,” he added.
The fiber provider allocated the majority of its P17-billion to P19-billion capital expenditure budget in 2024 for the two international subsea cable systems initially aimed for completion this year.
These include the Bifrost Cable System and the Asia Pacific Southeast Asia-Hainan-Hongkong Express (SEA-H2X) Submarine Cable System.
Bifrost is a transpacific cable system linking Singapore, Indonesia, the Philippines, Guam, and the west coast of the United States. It spans 15,000 kilometers and boasts a design capacity of up to 15 terabits per second (Tbps).
Meanwhile, SEA-H2X is a 5,000-kilometer submarine cable system connecting Hong Kong SAR China, Hainan China, the Philippines, Thailand, Malaysia, and Singapore. It features a design capacity of 160 Tbps.
The projects are designed to meet the increasing demand for digital connectivity in the region and establish an essential, direct connection to North America.
“Worst case (scenario is the) first quarter next year. It could be late this year or early next year,” Converge Chief Operations Officer Jesus C. Romero said in a separate interview.
“There are certain things you can’t control like weather conditions, but the laying is ongoing,” he added.
In 2023, Converge saw a 22.3% growth in its net income to P9.1 billion as consolidated revenues jumped by 5% to P35.4 billion.
Residential revenues increased by 3% to P30.28 billion from P29.46 billion in 2022 as full-year net additional subscribers rose 35% to 250,691.
The internet provider closed 2023 with 2,128,052 subscribers, comprising of 2,013,216 postpaid subscribers and 114,836 prepaid subscribers.
Converge shares were last traded on April 8 at P9.50 apiece. — Revin Mikhael D. Ochave
