A MAJOR development in the telecoms industry is the bold Initial Public Offering (IPO) of Converge ICT, an internet service provider that has brought fixed broadband internet connection. Converge’s high speed internet coverage has grown by leaps and bounds since it was first founded in 2016 by Dennis Anthony Uy off Clark in Pampanga (not to be confused with Davao’s Dennis Uy whose DITO telecommunications partnership with China Mobile is gunning to be that “third telco).
From the very start Converge identified wiring up the population with broadband access and focusing on that single area of telecommunications alone. And it served itself well, as well as its clients, building up a significant customer base from its Central Luzon hub, through Metro Manila and up to recently starting the penetration of the Mega Manila suburbs of Laguna.
Converge launched its IPO bid today (Monday, 26 October 2020) to raise funds for its two pronged plans for growth as said in their prospectus: “Go Deep”, deepen penetration in existing coverage areas by employing a disciplined approach in network rollout and to identify key sub-localities where coverage gaps still exist; and “Go National”, expand into new coverage areas across the Philippine archipelago, first into Cebu province in the Visayas and subsequently in other new markets and sub-markets in the Visayas and Mindanao, as the company completes its nationwide backbone.
This focus on fixed broadband places Converge in a unique position in as far as internet connectivity is concerned. The top two telecoms providers, Globe and PLDT/ Smart, are “full-service” telcos which provide a broader range of services from cellular phone services, mobile broadband connectivity, landline services and other traditional telco services. In fact, fixed broadband is only 30 to 40 percent of their business.