CONVERGE ICT Solutions, Inc. has secured regulatory approval to provide international connectivity services in Singapore as the listed fiber internet service provider moves to expand its international wholesale business.
In a stock exchange disclosure on Wednesday, Converge said the Singapore government’s Infocomm Media Development Authority (IMDA) had approved the application of the firm’s subsidiary Converge ICT Singapore Pte. Ltd. (Converge SG) for a facilities-based operations (FBO) license.
“Effective Jan. 3, 2023, Converge SG can start deploying telecommunications infrastructure and provide connectivity services and fiber optic cable capacity to wholesale and enterprise customers in the Southeast Asian city-state,” Converge said.
With the approved license, Converge gains the rights to provide international connectivity services in Singapore as well as ethernet-international private line service, dedicated internet access service, carrier ethernet network service, internet protocol virtual private network services using multiprotocol label switching, and sale and resale of submarine cable capacities.
Wholesale bandwidth is purchased by telecommunication firms and internet service providers to provide the bandwidth capacity required for their respective connectivity solutions and customer applications.
Dennis Anthony H. Uy, Converge chief executive officer and Converge SG director, said that the approval expands the company’s client reach.
“The grant of an FBO license to our Singapore unit significantly bolsters the ability of the Converge Group to sell international wholesale connectivity and capacity services, as we can now directly service clients in Singapore to cater their growing needs for intra-Asia and trans-Pacific connectivity requirements,” Mr. Uy said.
The Converge international network sustains expansion plans with its participation in the Bifrost Cable System and the Southeast Asia Hainan Hong Kong express cable system, both of which are projected to be operational by next year.
“Our international backbone is now one of the biggest in the country, running at half utilization. We designed it that way so in case of fiber outage or submarine earthquakes, customer experience will not be affected,” Converge Chief Operations Officer Jesus C. Romero said.
“Our diverse, fully redundant international network and the establishment of the Singapore office will help us make the Philippines a digital transit hub in Asia,” he added.
On Wednesday, shares of Converge at the local bourse rose 1.34 points or 8.67% to end at P16.80 apiece. — Revin Mikhael D. Ochave