Philippine internet service provider Converge ICT Solutions Inc. is officially taking part in the construction of a new subsea cable system as it entered into “definitive agreements” with Keppel Telecommunications & Transportation. The listed fiber internet provider on Thursday said it is set to spend approximately ₱5 billion for the full Bifrost Cable System.
The undersea cable system which will span more than 15,000 kilometers intends to directly link Singapore, Indonesia, the Philippines, Guam, and the west coast of North America.
Under the agreements, Converge has been awarded an Indefeasible Right of Use (IRU) for one fiber pair on the main trunk of Bifrost Cable System.
Both parties will also establish a branch on the underwater cable system that will land in Davao. Converge, meanwhile, will be selected as the landing party for the Davao branch segment.
“The additional Davao branch for the Bifrost Cable System will significantly increase internet speeds and network diversity for businesses and consumers in the Philippines for a better digital experience,” Dennis Anthony Uy, CEO of Converge, was quoted as saying in a disclosure to the local bourse.
“Our investment into this cable system also gives us two direct international links, one going to Singapore and the other one going to North America with a design capacity of up to 15Tbps (terabits per second) in each direction,” the Pampanga-based businessman added.
The Bifrost Cable System project is expected to be completed by 2024, Converge ICT said.
The Bifrost Cable System will boost the connectivity of the region’s governments and businesses, including cloud operators, telecommunications operators, network providers, over-the-top providers, data centers, governments, enterprises, and consumers by offering them competitive pricing and capacity resilience. Construction of the Davao branch is subject to the appropriate regulatory permits and licenses being obtained. As the transaction proceeds, Keppel T&T will make the necessary announcements when there are material developments.
Company disclosure: PSE EDGE Disclosure
Read more: CNN, Manila Standard
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