Telecommunication providers are gearing up for expansion to meet rising demand.
Fiber broadband provider, Converge ICT Solutions Inc. has raised P10-billion from its maiden bond offering, that will fund its fiber network expansion in unserved and underserved areas in the country.
PLDT Inc. meanwhile said it has completed the expansion of fiber network in 10 major island provinces in the country.
Last Friday, Converge listed on the Philippine Dealing & Exchange Corp (PDEx) its maiden bond issue, the first tranche of its shelf-registered P20 billion debt securities.
The bonds were eight times oversubscribed amid strong demand from retail investors, banks, pension funds, insurance companies, and retirement funds, among others. It will carry a gross interest rate of 5.5942 percent per annum, fixed for the next 5 years until its maturity on April 8, 2027.
“This will allow Converge to fund future key projects aimed at enhancing the country’s shift to a digital economy. With the strong support we’ve received from investors, we are confident of expanding our network further to connect the unserved and underserved Filipinos with our pure fiber broadband,” said Dennis Anthony Uy Converge chief executive officer and co-founder.
This is the first time for the leading fiber broadband provider to tap the domestic bond market to support its business plans and expansion, 18 months after the initial public offering of its shares in the Philippine Stock Exchange (PSE).
The proceeds of the bond issue will be used for capital expenditures related to the expansion of its nationwide fiber network.
PLDT in a statement said it has further improved the quality of its services in the island provinces of Marinduque, Romblon, Catanduanes, Masbate, Panay, Cebu, Siquijor, Bohol, Samar and Negros after the activation of fiber optic cable (FOC) links connecting the islands to the rest of the country and the world.
This forms part of the Enhanced Resiliency of DFON Loops 4 and 5 (eRDL45) project includes more than 2,000 kilometers of submarine and inland FOC links, and also aims to make the network more resilient and ready to support future services, such as fifth generation (5G).
With fiber links now connecting the island provinces, homes and businesses in the areas can start enjoying fiber-to-the-home (FTTH) services via PLDT Home.
Customers of PLDT’s wireless arm Smart Communications Inc. can also look forward to improved mobile data experience, especially for customers using LTE and 5G phones.
PLDT’s fiber infrastructure, which was at 743,700 kilometers as of end-2021, also supports Smart’s mobile network by providing high-capacity links for its base stations.
“Fiber is the future, and we’re bringing it now to more Filipinos. As we connect more islands in our country with fiber, we are able to deliver the best digital experience for our 5G/LTE and FTTH customers,” said Mario Tamayo, PLDT and Smart head of technology.
“These submarine cable links also improve our network’s resiliency by providing alternate routes for data traffic in the event of fiber breaks, so our customers are always connected,” Tamayo added.
This project is part of the PLDT Group’s sustained investments in their network. Network-related initiatives made up the bulk of the P89 billion spend for 2021. – Myla Iglesias
