Converge reviews plan to create separate fiber unit

CONVERGE ICT Solutions, Inc. said its plan to carve out fiber assets into a new unit remains under review as the company continues to monitor industry developments.

“It is still on the study table. It takes a while because you need to make everything available including network sizing, automation and everything, the back end should also be ready,” Converge ICT Chief Executive Officer Dennis Anthony H. Uy told reporters on the sidelines of the company’s data center inauguration on March 20.

He said the plan could be beneficial if implemented alongside the Konektadong Pinoy Act, which emphasizes infrastructure sharing.

“Maganda na sabay yan sa Konektadong Pinoy (It’s good that this goes hand in hand with the Konektadong Pinoy Act). The reason why you set up KP (Konektadong Pinoy) is sharing the infrastructure,” Mr. Uy said.

Converge said last year that it was studying the creation of a new unit for infrastructure co‑sharing, noting that its decision would likely depend on the rules under the Konektadong Pinoy Act.

Bloomberg previously reported that Converge plans to spin off its fiber business, valued at around $1 billion, and sell about a 40% stake in the new unit.

The Konektadong Pinoy Act, or the Open Access in Data Transmission Act, streamlines the licensing process for new entrants and aims to boost competition in data transmission.

The measure, which lapsed into law on Aug. 24, 2025, relaxes regulations to favor more entrants in the data transmission industry.

For 2026, the company set a capital expenditure (capex) guidance of P18 billion to P23 billion, following a 2025 period in which it used P17.7 billion in cash capex, despite an original budget of P25 billion.

The 2026 budget is primarily allocated for a network expansion program targeting the installation of 900,000 new ports in the Visayas and Mindanao regions, alongside investments to improve network reliability.

Mr. Uy noted that Converge is seeing rising demand from prepaid users in remote areas, which the company aims to capture as it expands its reach.

The listed fiber broadband and technology provider launched its P5-billion, 12-megawatt (MW) data center in Angeles, Pampanga last month.

Overall, the company has a total data center capacity of about 20 MW, including its Caloocan and Pasig facilities.

The Angeles data center, which sits on a 5,000-square-meter property, is scalable to 36 MW and is artificial intelligence-ready to meet growing demand for content and cloud services.

Converge is also strengthening its network by integrating the transpacific link Bifrost and the intra-Asia SEA-H2X cable system into its operations. — Ashley Erika O. Jose