DOCSLIB.ORG

Delivering High-Speed Broadband to Millions of Philippine Households & Businesses Nationwide

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Delivering High-Speed Broadband to Millions of Philippine Households & Businesses Nationwide Delivering High-Speed Broadband to Millions of Philippine Households & Businesses Nationwide 3Q20 Results Update October 2020 1 215 197 181 214 240 193 206 250 203 214 240 239 243 244 253 214 240 255 69 16 32 89 211 0 40 168 99 89 211 153 169 154 250 89 211 204 Legal Disclaimer These materials have been prepared exclusively for information and disclosure purposes only. This does not constitute any offer to sell securities. These may contain forward-looking statements and information that are, by their nature, subject to significant risks, uncertainties, and assumptions. Many factors could make or cause the actual results, performance or achievements of CNVRG to be 76 materially different from those expressed or implied in this release, including, but not limited to, changes in general economic, 57 157 political, governmental and business conditions in the Philippines and globally, as may be applicable; changes in interest rates; changes in inflation rates; changes in exchange rates; the level and speed of network construction generally; changes in raw materials and energy prices, changes in business strategies; and various other factors. Should one or more of these risks or 60 uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described 72 herein. CNVRG disclaims any obligation or undertaking to update or revise the information contained in these materials and 135 releases. This communication is not intended to be provided to, and may not be used by, any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules, or regulations. 55 99 140 48 140 147 42 178 153 158 158 158 All rights reserved. 2 215 197 181 214 240 193 206 250 203 214 240 239 243 244 253 214 240 255 69 16 32 89 211 0 40 168 99 89 211 153 169 154 250 89 211 204 Today’s Speakers 76 57 157 60 72 135 55 99 140 Dennis Anthony Uy Grace Yao Uy Benjamin Azada Chief Executive Officer Co-Founder President, Co-Founder Chief Strategy Officer 48 140 147 42 178 153 158 158 158 Jesus C. Romero Matthias Vukovich Chief Operating Officer Chief Financial Office Advisor 3 215 197 181 214 240 193 206 250 203 214 240 239 243 244 253 214 240 255 69 16 32 89 211 0 40 168 99 89 211 153 169 154 250 89 211 204 3Q20 Results Key Takeaways Rapid growth continues in 3Q20 with 71% YoY revenue growth and 79% YoY EBITDA growth 76 57 157 Continued to deliver the industry-leading trifecta with 60 72 67% revenue growth, 52% EBITDA margin and 20% ROIC in 9M20 135 55 Record monthly port roll-out and gross residential subscriber 99 140 additions of ~179k and ~74k respectively in September 2020 48 140 147 Continued upselling resulting in healthy residential ARPU growth of ~7% in 3Q20 (vs. 1H20) 42 178 153 Residential business delivered 90% YoY revenue growth in 9M20, driven by strong subscriber additions and healthy ARPU growth 158 158 158 Enterprise business continued to remain robust, with revenue growing 15% YoY in 9M20 despite COVID-19 4 215 197 181 214 240 193 206 250 203 214 240 239 243 244 253 214 240 255 69 16 32 89 211 0 40 168 99 89 211 153 169 154 250 89 211 204 Financial Update: Continuing to Achieve Trifecta of ~67% Growth, 52% Margin, ~20% ROIC Revenue EBITDA (2) PHP MM (1) PHP MM (1) ($220) ($115) 76 5,576 57 ($188) 10,677 ($96) 157 9,140 4,665 2,264 ($132) ($66) ($104) 2,786 6,393 ($53) 3,205 60 ($86) ($47) 72 5,055 2,549 ($61) 1,964 2,262 135 ($51) 4,187 ($30) ($26) ($38) 1,904 8,413 ($18) 1,460 2,940 2,451 752 1,266 1,894 6,354 894 1,421 734 4,429 55 1,033 3,151 3,435 99 862 1,520 1,718 140 2016 2017 2018 2019 3Q19 3Q20 9M19 9M20 2016 2017 2018 2019 3Q19 3Q20 9M19 9M20 Residential Enterprise 48 EBITDA Margin (2) ROIC (3) 140 147 Annualized 52.2% 20% 42 178 51.0% 153 50.4% 50.1% 49.7% 12% 12% 158 158 47.2% 158 6% (4) (4) (4) 2016 2017 2018 2019 9M19 9M20 APAC Broadband Phils Telco Global Broadband Notes: 1. Based on an FX rate of 1 US$ to 48.510 PHP 2. Pro Forma Adjusted EBITDA is EBITDA adjusted for provision for contingencies, loss on direct write-off of network materials and supplies and loss on fire and Pro Forma Events 3. Return on Invested Capital is tax-adjusted (30% assumed effective tax rate) pro forma profit from operations divided by average invested capital. Invested Capital is the sum of our total equity and total debt (comprising loans payable (non-current and current portions)), less cash and cash equivalents and capital expenditures in progress 5 4. APAC broadband players includes Link Net, HKBN, and Time dotCom; Philippines Telco includes PLDT, and Globe; Global broadband players include Telenet, Altice, Altice N.V., Charter Communications and Liberty Global; Link Net and Time dotCom ROIC refers to LTM as of 1Q2020 215 197 181 214 240 193 206 250 203 214 240 239 243 244 253 214 240 255 69 16 32 89 211 0 40 168 99 89 211 153 169 154 250 89 211 204 Record Pace of Network Roll-out: Currently Adding ~180k Ports per Month Extensive and Fast-growing Network Homes Passed (MM) (1)(2)(3) 76 2% 13% 21% 55% ~5.1MM homes passed as of September 2020, ~10x increase 57 8 190 353 157 15.1 from 2016 to Sep 2020 ~10x 60 72 5.1 ~21% household coverage nationwide as of September 2020 135 3.2 0.8 (~36% in Luzon) 0.5 0.8 4.3 2.4 (6) 2016 2019 Sep-20 2021E 2025E 55 Targeting 55% household coverage (~15MM homes passed) 99 FTTH Homes Passed HFC Homes Passed 140 by 2025E (4) Monthly Addition Run-rate (‘000s) Household Coverage (5) (for last month in the period) 48 140 Number of Ports (MM) (1)(2) 147 ~3.0MM ports as of September 2020, ~6x increase from 2016 5 100 179 7.5 - 8.0 to September 2020. Target 7.5-8MM ports by 2025E 42 ~6x 178 153 3.0 ~180k port additions in August and September 2020, which is expected to continue through to year-end 2021 2.0 0.8 0.8 0.5 2.1 158 1.2 158 158 2016 2019 Sep-20 2021E 2025E FTTH accounted for over 90% of port additions since 1Q19 FTTH HFC Monthly Addition Run-rate (‘000s) (4) and comprises ~72% of total ports as of September 2020 (for last month in the period) Notes: 1. FTTH homes passed is derived from the number of homes within a 300 meter radius from a network access point (“NAP”) that we have installed in a coverage area. Each NAP has eight ports, and one port serves one home 2. HFC homes passed refers to the number of homes and other residential units that are within a 200 meter radius from our HFC ports, and can be connected to our network. 3. For FTTH, ratio of 1 port = 2 home passed; for HFC, ratio of 1 port = 1 homes passed 4. Run-rate based on additions in last month of each period (i.e. December for full-year and June for half-year) 5. Household coverage is calculated as total homes passed over total number of homes, which is 24.8 million as of 2019 6. Based on 2025E total households of 27.5 million according to MPA 6 215 197 181 214 240 193 206 250 203 214 240 239 243 244 253 214 240 255 69 16 32 89 211 0 40 168 99 89 211 153 169 154 250 89 211 204 Record Highs in Monthly Gross Adds: Run-Rate at 65-70k+ Monthly Gross Additions with Steady ARPU Number of Subscribers (‘000) Market-Leading (1) Take-up Rates • ~60%+ port take-up rates in the long run, and ~40% within 12 months which are 4x faster than the industry • More recent vintages achieved significantly faster take-up compared to 3.7 22.7 73.6 901k subscribers as of September 2020, ~12x earlier vintages 76 growth since 2016; driven by FTTH subscriber growth • Regional areas e.g. Daet (which is less dense and less affluent compared 57 ~12x to Metro Manila) reported ~50% take-up in 8 months 157 12x • Significant investment to-date with port inventory sufficient to add ~1.5mm Increase in 901 new subscribers with minimal incremental capex Gross subscriber adds of 65k in July 2020, 70k in Subscribers 228 Key Success Factors Contributing to High Take-up Rates 60 530 August 2020 and 74k in September 2020. Expect Since 2016 • Careful site selection considering a wide-range of factors 72 199 run-rates to continue through to year-end 2021 135 673 • “Right sizing” port deployment to match market demand; phased 74 331 deployment to test market demand • Close internal coordination between sales and network teams 2016 2019 Sep-20 • Pre-marketing conducted months in advance of launch 55 Over 90% of gross adds are first-time fixed FTTH HFC 99 broadband users in 3Q20 (1) 140 Monthly Gross Addition Run-rate Rapid Growth • 814k subscribers as of July 2020, achieving ~11x growth since 2016 (largely driven by FTTH subscriber growth) 48 Blended ARPU 140 − 50%+ share of market net adds since 2018 (2) (3) 147 PHP (US$) Continued upselling resulted in healthy ARPU • Recorded gross subscriber addition run-rate of ~68k gross additions in +7% July 2020 growth of 7% in 3Q20 vs.
Load more

Recommended publications
  • The Daily Dispatch
    The Daily Dispatch July 06, 2020 Feb. 2, 2017 Philippine Stock Market Update TODAY’S TOP NEWS No more Bayanihan grants to LGUs, low usage rate Local government units (LGUs) have used only P5.5 billion of their one-time grants to support their coronavirus disease 2019 (COVID-19) containment efforts, a Budget official said, adding that no more additional funding will be provided. Previous Close: 1 Yr Return: 6,372.66 -20.58% Converge’s listing success backed by digital shift Brokers anticipate a high demand for Converge ICT Open: YTD Return: Solutions, Inc.’s planned P35.92-billion initial public offering 6,378.29 -18.82% (IPO) due to positive prospects for the telecommunications sector. The offering is targeted to begin on Oct. 13 until 52-Week Range: Source: Oct. 19, with listing on the main board of the Philippine 4,039.15 - 8,419.59 Bloomberg Stock Exchange on Oct. 26. Foreign Exchange As of July 3, 2020 Inflation uptick seen in June US Dollar Philippine Peso Inflation may have slightly picked up in June with upward pressure mainly from rising prices of oil and rice, according 1 49.400 to analysts. A BusinessWorld poll of 16 economists last week yielded a median estimate of 2.2% for headline inflation in PDST-R2 Rates June, still slower than the 2.7% a year ago but a tad faster As of July 3, 2020 than the 2.1% in May. Tenor Rate Lawmakers cite urgency of Bayanihan 2’s passage 1Y 1.9480 LAWMAKERS on Sunday reiterated willingness to tackle measures to help businesses and workers recover from 3Y 2.2050 Covid-related disruptions, as they await Palace’s final 5Y 2.4230 confirmation of the date for a special session for the 7Y 2.6410 purpose.
    [Show full text]
  • (Access Network-Fiber) ADN Telecom Limited Bangladesh CTO ADN
    Job Title Company Country Deputy General Manager (Access ADN Telecom Limited Bangladesh Network-Fiber) CTO ADN Telecom Limited Bangladesh Director of Customer Relations ASI Silica Machinery United States Engineering ManagerEngineering Manager Asian Vision Cable Philippines COO Asian Vision Cable Philippines Research and Testing Engineer Asian Vision Cable Holdings Inc Philippines IT/MIS Manager Asian Vision Cable Holdings Inc Philippines Network Engineer Asian Vision Cable Holdings Inc Philippines Business Development Representative AVSystem Poland Business Development Manager AVSystem Poland International Sales Director AVSystem Poland CEO AVSystem Poland President, Americas AVSystem United States Network Manager Batangas CATV Inc Philippines Engineer Binangonan Cable Tv Corp. Philippines Engineer Binangonan Cable Tv Corp. Philippines Sales Director APAC/LATAM BKtel Communications GmbH Germany BKtel Representative for South East Asia BKtel Communications GmbH Germany Assistant Manager - Network Operations Cable Link & Holdings Corp. Philippines & Engineering Vice President for Operations Cable Link & Holdings Corp. Philippines Manager - Network Operations & Cable Link & Holdings Corp. Philippines Engineering Head - Network Planning & Design Cable Link & Holdings Corp. Philippines Technical Engineer Cabletronics Cable Systems Inc Philippines Technical Engineer Cabletronics Cable Systems Inc Philippines AVP Solutions Engineering Calix United States Sales Manager Camozzi Technopolymers Srl Italy Chief Executive Officer Celcom Timur (Sabah)
    [Show full text]
  • 1Q2021 Financial Results Briefing Presentation
    Meeting Reminders • Please mute your microphones during the presentation. • Questions will be entertained during the Q&A portion. You may send your questions through the Zoom Chat feature. Please introduce yourself along with your affiliated company/research house. • The session will be recorded. 2 Today’s Speakers Mr. Dennis Anthony H. Uy Ms. Grace Y. Uy CEO and Co-Founder President and Co-Founder Mr. Matthias Vukovich Mr. Jesus C. Romero Mr. Benjamin B. Azada Chief Financial Office Advisor Chief Operations Officer Chief Strategy Officer 1Q2021 Results Key Takeaways Maintained industry-leading trifecta in 1Q2021 (vs. 1Q2020) with ✓ 83.6% revenue growth, 55.0% EBITDA margin and 23.1% ROIC Continued strong EBITDA growth in 1Q2021 with 101.6% YoY growth ✓ (vs. 1Q2020) 500k new ports and 182k gross residential subscribers added in ✓ 1Q2021. Converge captured 48% of Fixed Broadband Net Adds Improved our residential blended ARPU from P1,284 in 1Q2020 to ✓ P1,390 during 1Q2021 Residential business delivered 110% YoY revenue growth in 1Q2021, ✓ driven by strong subscriber additions and slightly improved ARPU ✓ Enterprise business grew 2% YoY in 1Q2021 6 Added ~500k FTTH Ports during 1Q2021 Extensive and Fast-growing Network Homes Passed (MM) (1)(2)(3) 13% 25% 14% 28% 55% More than 7.1MM homes passed as of March 2021, almost 190 350 128 331 15.1 ✓ double from March 2020 ~2x 7.1 6.2 0.8 ~28% household coverage nationwide as of December 2020 3.2 0.8 3.6 ✓ (~50% in Luzon) 0.8 5.3 0.8 2.4 2.8 6.3 (6) 2019 2020 1Q2020 1Q2021 2021E 2025E Targeting 55% household coverage (~15MM homes passed) by FTTH Homes Passed HFC Homes Passed ✓ 2025 Monthly Addition Run-rate (‘000s) (4) Household Coverage (5) (for last month in the period) Number of Ports (MM) (1)(2) 100 177 66 165 ~4.0MM ports as of March 2021, 82% increase from March 7.5-8.0 ✓ 2020.
    [Show full text]
  • Philippine Broadband Market Report
    ICT MONITORING OVERVIEW This special report will give readers a view of the evolu&on of PHILIPPINE the broadband market in the Philippines -revenue, market share per provider, latest ini&a&ves, analyst outlook of the poten&al development and more about PH broadband BROADBAND market in the next few years. MARKET REPORT KEY PROVIDERS COVERED • Converge ICT • Eastern • Globe • PLDT • PT&T • Radius • RISE • Sky Cable • Source KEY INDICATORS COVERED Subscrip&ons (Historical quarterly figures covering the past 3 years + 5-year forecast): • Total broadband subscrip&ons • Total broadband subscrip"ons – market share by technology: xDSL, cable, FTTH/FTTB, fixed wireless access, mobile broadband, satellite) • Total broadband subscrip"ons – market share by provider • Total Business broadband subscrip&ons • Business broadband subscrip"ons – market share by technology: xDSL, cable, FTTH/FTTB, fixed wireless access, mobile broadband, satellite) • Business broadband subscrip"ons – market share by provider • Total Residen&al broadband subscrip&ons • Residen"al broadband subscrip"ons – market share by technology: xDSL, cable, FTTH/FTTB, fixed wireless access, mobile broadband, satellite) • Total Residen"al broadband subscrip"ons – market share by provider • Total broadband penetra&on rate (including breakdown by technology: xDSL, cable, FTTH/FTTB, fixed wireless access, mobile broadband, satellite) • Total broadband penetra"on rate – by provider • Business broadband penetra&on rate (including breakdown by technology: xDSL, cable, FTTH/FTTB, fixed wireless access,
    [Show full text]
  • NOW Corp Prospectus June 21, 2018
    of of SUBJECT TO COMPLETION PRELIMINARY PROSPECTUS STRICTLY CONFIDENTIAL nary Prospectus constitute an offer to sell or the solicitation here such offer or sale is not permitted. is not oroffer sale such here notice. notice. The Offer Shares may not be sold nor may an offer to buy be NOW Corporation (A corporation duly incorporated under the laws of the Republic of the Philippines) Primary Offer of 5,000,000 Redeemable Convertible Cumulative Non-Participating Non-Voting Peso- denominated Preferred ―A‖ Shares with an Oversubscription Option of Subscriptions to 5,000,000 Preferred ―A‖ Shares, with 25,000,000 underlying Common Shares and an additional 25,000,000 Common Shares upon the exercise of the Oversubscription Option, which Common Shares shall be issued upon conversion of the Preferred ―A‖ Shares at a conversion price of ₱20.00 per share, or a conversion ratio of 5 Common Shares for every 1 Preferred ―A‖ Share, at an Initial Dividend Rate of [7.5544% to 8.3044%]1 per annum and an Offer Price of ₱100.00 per share to be listed and traded on the Main Board of the Philippine Stock Exchange, Inc. and 10,000,000 Detachable Subscription Warrants to be issued free of charge, with 10,000,000 underlying Common Shares, with an Oversubscription Option of Subscriptions to 10,000,000 Detachable Subscription Warrants and 10,000,000 underlying Common Shares to be listed and traded on the Main Board of the Philippine Stock Exchange, Inc. Unicapital, Inc. Issue Manager, Bookrunner and Underwriter The date of this Preliminary Prospectus is [June __, 2018].
    [Show full text]
  • Sec Form – I-Acgr Integrated Annual Corporate Governance Report
    SEC FORM – I-ACGR INTEGRATED ANNUAL CORPORATE GOVERNANCE REPORT 1. For the fiscal year ended: December 31, 2020 2. SEC Identification Number: CS200716094 3. BIR Tax Identification No. 006-895-049 4. Exact name of issuer as specified in its charter CONVERGE ICT SOLUTIONS, INC. 5. Metro Manila, Philippines 6. (SEC Use Only) Province, Country or other jurisdiction of Industry Classification Code: incorporation or organization 7. New Street Bldg., Mc Arthur Highway, Balibago, Angeles City, Pampanga 2009 Address of principal office Postal Code 8. (02) 8667-0888 Issuer's telephone number, including area code 9. N/A Former name, former address, and former fiscal year, if changed since last report. INTEGRATED ANNUAL CORPORATE GOVERNANCE REPORT COMPLIANT/ ADDITIONAL INFORMATION EXPLANATION NON- COMPLIANT The Board’s Governance Responsibilities Principle 1: The company should be headed by a competent, working board to foster the long- term success of the corporation, and to sustain its competitiveness and profitability in a manner consistent with its corporate objectives and the long- term best interests of its shareholders and other stakeholders. Recommendation 1.1 1. Board is composed of directors with The Board of Directors is composed collective working knowledge, experience of highly skilled and capable or expertise that is relevant to the individuals, having expertise and company’s industry/sector. competencies in multiple industries 2. Board has an appropriate mix of that enable them to respond to the competence and expertise. needs of the organization and act for Compliant 3. Directors remain qualified for their positions the best interest of the company. individually and collectively to enable them to fulfill their roles and responsibilities References: and respond to the needs of the SEC Annual Report 17A Pages (56-57) organization.
    [Show full text]
  • Cnvrg Fy2020
    C OV ER SH E ET SEC Registration Number C S 2 0 0 7 1 6 0 9 4 Company Name C O N V E R G E I N F O R M A T I O N A N D C O M M U N I C A T I O N S T E C H N O L O G Y S O L U T I O N S , I N C . Principal Office (No./Street/Barangay/City/Town/Province) N E W S T R E E T B U I L D I N G M C A R T H U R H I G H W A Y B A L I B A G O A N G E L E S C I T Y P A M P A N G A Form Type Department requiring the report Secondary License Type, If Applicable 1 7 - A C O M P A N Y I N F O R M A T I O N Company's Email Address Company's Telephone Number/s Mobile Number converge [email protected] - 09175774586 Annual Meeting Fiscal Year Month/Day Month/Day Last Friday of May of Each Year Dec -31 C O N T A C T P E R S O N I N F O R M A T I O N The designated contact person MUST be an Officer of the Corporation Name of Contact Person Email Address Telephone Number/s Mobile Number OWEN OCAMPO okdocam po @converge ict.com - 09 328912603 CONTACT PERSON's ADDRESS Reliance IT Center Bldg., Annex 1, No.
    [Show full text]
  • Board of Directors [Excerpt from Prospectus]
    BOARD OF DIRECTORS [EXCERPT FROM PROSPECTUS] The following table sets forth our Board of Directors: Name Position Citizenship Dennis Anthony H. Uy CEO, Founder & Executive Director Filipino Maria Grace Y. Uy President, Chief Resources Officer, Founder & Executive Filipino Director Jose Pamintuan de Jesus Chairman, Independent Non-Executive Director Filipino Amando M. Tetangco, Jr. Independent Non-Executive Director Filipino Roman Felipe S. Reyes Independent Non-Executive Director Filipino Francisco Ed. Lim Non-Executive Director Filipino Saurabh N. Agarwal Non-Executive Director Indian The following states the business experience of our incumbent directors for the last five years: Mr. Dennis Anthony H. Uy, aged 54, co-founded Converge with Ms. Maria Grace Y. Uy in 2007 and currently serves as our CEO and Executive Director. Mr. Uy launched his first business while still in university. He founded Comclark, the controlling shareholder of Converge, in Pampanga in 1996 and remains the CEO and President of Comclark. Mr. Uy also serves on the boards of several companies in the technology, media, power, and real estate sectors, including the Uy family’s holding companies and Comclark, and actively participating Founding member and leader of Asia Pacific FTTH Council. Mr. Uy holds a Bachelor of Science degree in Electrical Engineering from the Holy Angels University, Pampanga. Ms. Maria Grace Y. Uy, aged 52, co-founded Converge with Mr. Dennis Anthony H. Uy in 2007 and currently serves as our President, Chief Resources Officer and Executive Director. Prior to that, she served as the Accounting Manager of IBM Philippines from 1990 to 1997 and Vice President for Finance in Savers Mall Group of Companies from 1997 to 2000.
    [Show full text]
  • 4Q/FY2020 Financial and Operating Results Briefing #Experiencebetter Legal Disclaimer
    4Q/FY2020 Financial and Operating Results Briefing #ExperienceBetter Legal Disclaimer These materials have been prepared exclusively for information and disclosure purposes only. This does not constitute any offer to sell securities. These may contain forward-looking statements and information that are, by their nature, subject to significant risks, uncertainties, and assumptions. Many factors could make or cause the actual results, performance or achievements of CNVRG to be materially different from those expressed or implied in this release, including, but not limited to, changes in general economic, political, governmental and business conditions in the Philippines and globally, as may be applicable; changes in interest rates; changes in inflation rates; changes in exchange rates; the level and speed of network construction generally; changes in raw materials and energy prices, changes in business strategies; and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. CNVRG disclaims any obligation or undertaking to update or revise the information contained in these materials and releases. This communication is not intended to be provided to, and may not be used by, any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules, or regulations. All rights reserved. • 2 2 Today’s Speakers Dennis Anthony Uy Grace Yao Uy Matthias Vukovich Chief Executive Officer, Co-Founder President, Co-Founder Chief Financial Office Advisor Jesus Romero Benjamin Azada Chief Operating Officer Chief Strategy Officer • 3 3 4 5 4Q/FY2020 Results Key Takeaways Rapid growth continues in 4Q2020 with 81% YoY revenue growth and 88% ✓ YoY EBITDA growth (vs.
    [Show full text]
  • Converge Deploys 3Rd Core Network Backbone Node for Better Customer Internet Experience
    Converge Deploys 3rd Core Network Backbone Node for Better Customer Internet Experience Manila, Philippines, January 6, 2021 – Converge ICT Solutions, Inc. (PSE: CNVRG), the country’s biggest pure end-to-end fiber internet service provider, is making its fiber network fully redundant with the deployment of its third Core node to further improve its customers’ internet experience. “We’ve always said that we are all about our customers’ online experience. This is one of the best examples of how we intend to back it up. Our main advantage is the quality of our high-speed fiber connectivity,” said Converge CEO Dennis Anthony Uy. He noted that a third core backbone node will enable a robust and redundant traffic routing in the network, making it more fault tolerant. Previously, the main network backbone of Converge are connected to two core nodes located in Metro Manila and Pampanga. With the completion of a third Core network backbone node last December, the Converge end-to-end pure fiber network becomes stronger and more resilient with a more efficient network traffic distribution and better ability to address outages. "Our expansion efforts are running at an unprecedented pace. And we know that network capabilities need to be more so we can serve everyone as best as we could,” Mr. Uy pointed out. Aside from the third Core backbone node, Converge has implemented several network and connectivity enhancement initiatives. It has recently deployed 34 broadband remote access server systems (BRAS) throughout Luzon. These systems help enhance customer internet experience as it increases reliability and decreases latency.
    [Show full text]
  • 3.4 Philippines Telecommunications
    3.4 Philippines Telecommunications Telecommunications Regulations Existing Humanitarian Telecoms Systems Internet Service Providers (ISPs) Mobile Network Operators (MNOs) The Philippines has an advanced mobile market when compared to other similar countries. The Philippine Long-Distance Telephone Company (PLDT) and Globe Telecom are the two major telecommunication carriers in the country. The current Philippine cellular infrastructure is Global System for Mobile Communications (GSM). 4G service was made available in 2010, access to 4G services are above 70% for both all over the country with more than 80% in the main town. SMART (PLDT) and Globe launched long-term evolution (LTE) networks in 2012.PLDT has an existing digital fibre optic, and a digital microwave radio system connecting the entire country. Globe Telecom has fibre optic cables and was the first to offer Worldwide Interoperability for Microwave Access (WiMax). The bulk of the fixed services are in urban areas. In contrast, the fixed line market in the Philippines remains underdeveloped and fixed line penetration continues to show stagnant growth. A major reason for this is due to the dominance of the mobile segment and the rapid expansion of the mobile broadband segment. PLDT has continued to be the Philippines’ dominant fixed- line provider. However, in recent years, Globe Telecom has been pushing hard to overhaul the incumbent and now is the leading mobile provider in term of overall subscribers. It’s very easy buying a mobile number in the Philippines, you can choose between prepaid and post-pay contracts. The main mobile service providers in the country are Smart and Globe and you can get information on rates, contract types, fees and offers by visiting operator’s websites.
    [Show full text]
  • Indonesian Towers Philippine Fixed Broadband
    TMT M&A NEWSLETTER 3Q2019 INDONESIAN TOWERS Indosat Ooredoo to find investors for 3,000 towers Stefano Sorrentino, Adriano Giaquinta, Chin San Ng PHILIPPINE FIXED BROADBAND Converge ICT to connect 13 million homes to the Internet INDONESIAN TOWERS Indonesian-based telecom operator Some potential investors have already Indosat Ooredoo plans to sell ~3,000 expressed interest. As of August 2019, of its tower assets. The operator set Protelindo, the largest independent the average price for one tower unit in tower company in Indonesia (Exhibit 1), the range of USD 100 to 200 thousand, and Telkomsel, a state-owned telco, are depending on the tower location and the rumored to be interested in the towers. rental period, as well as other aspects. Indosat Ooredoo had previously com- Protelindo is well positioned to pur- pleted the sale and leaseback of 2,500 chase 3,000 additional towers thanks telecommunications towers to Tower to its balance sheet strength. In 2Q Bersama for a reported USD 519 million 2019, Protelindo reported a net debt in August 2012, i.e. slightly over USD 200 to annualized EBITDA ratio of 2.1x, i.e. thousand per tower. Today, Indosat Oore- well below its industry peers (STP’s doo is looking to raise USD 2 billion for its 4.5x and TBIG’s 5.2x). This might allow upcoming 4G CAPEX investments. The Protelindo to pursue inorganic growth operator is in the process of expanding by raising additional debt. A recent DBS its 4G network across Indonesia over the research paper shows that if Protelindo next 3 years, and this would encompass were to fund this transaction solely the addition of 18,000 4G base stations through debt, assuming that it would by the end of 2019.
    [Show full text]