Dennis Anthony H. Uy
CONVERGE ICT SOLUTIONS, Inc. said it projects a 5%–10% increase in enterprise revenue through its collaboration with Elon Musk’s Starlink.
On Tuesday, the listed fiber-optic network operator announced its partnership with Starlink to extend broadband access to remote areas, strengthening enterprise connectivity nationwide.
“For the enterprise business, that is where we will see the impact [of this collaboration]. This is how we will serve our clients. This will improve our revenue side easily by 5–10%,” Converge Chief Executive Officer Dennis Anthony H. Uy told reporters.
“The agreement we started signals the turning point of the enterprise business, which will be able to serve many more enterprises within the satellite solution,” Mr. Uy said.
Converge is among the few companies in the country authorized to resell Starlink services, Mr. Uy said, adding that the company targets to resell approximately $4 million worth of Starlink kits.
Starlink, a satellite internet service of Space Exploration Technologies Corp. (SpaceX), continues to expand its satellite network to provide high-speed broadband to rural and remote areas, according to its website.
As an authorized reseller, Converge now offers end-to-end turnkey solutions, including installation, network management, monitoring, and maintenance.
“Converge already has a formidable fiber network across the country. But we believe that by beefing up our satellite-powered connectivity solutions, we can charge full speed ahead in expanding our Global Business portfolio. This collaboration with Starlink is a key pillar to this aspiration,” said Sherie Ng, managing director of Converge Singapore, the company’s wholly owned unit.
With Starlink’s high-bandwidth, low-latency connectivity, Converge will now serve industries requiring reliable and resilient internet, including construction, mining, agriculture, retail, and hospitality, in remote areas.
For 2024, Converge expects revenue growth of up to 16% after posting a P10.8-billion net income.
The company said its profit increased by 18.9% to P10.8 billion from P9.09 billion in 2023, while total revenue grew by 14.8% to P40.61 billion from P35.36 billion.
By segment, residential revenue rose by 14% to P34.42 billion, while enterprise revenue grew by 22% to P6.19 billion from P5.08 billion.
Converge also announced a partnership with NASDAQ-listed Ribbon Communications, Inc. to strengthen its network to meet the growing demand for high-speed, low-latency, and reliable connectivity.
Based in Texas, Ribbon Communications specializes in real-time communications technology and IP optical networking solutions, helping large service providers and enterprises modernize and secure their networks.
At the stock exchange on Tuesday, Converge shares fell by 22 centavos, or 1.16%, to close at P18.78 apiece. — Ashley Erika O. Jose