MANILA, Philippines — Despite a challenging macroeconomic environment and rising interest rates, Converge ICT Solutions Inc. is maintaining its capital expenditure (capex) guidance for the year, on Friday, May 15, 2026, the fiber internet provider plans to spend between ₱12 billion and ₱15 billion this year to bolster its network infrastructure and data center capabilities.
The announcement came during the company’s first-quarter earnings briefing, where executives expressed confidence in the sustained demand for high-speed fiber connectivity.
Converge’s 2026 investment strategy is focused on three primary pillars designed to diversify its revenue streams beyond traditional residential internet:
- Data Center Expansion: A significant portion of the capex is earmarked for the completion of its SGP-3 data center, which is expected to go live by the fourth quarter of 2026. This is part of the company’s push to cater to the growing demand for cloud services and AI processing.
- Subsea Cable Systems: The company is finalizing its participation in international cable systems, including the Bifrost and SEA-H2X projects. These cables will provide direct, high-capacity links to Singapore, Hong Kong, and the United States.
- Regional Connectivity: Converge continues to densify its fiber footprint in Visayas and Mindanao, aiming to reach underserved municipalities where high-speed broadband penetration remains low.
While the full financial report showed steady growth, the focus remained on the company’s ability to maintain margins.
- Residential Growth: Converge added over 80,000 net new subscribers in the first three months of the year, driven by the popularity of its low-cost prepaid fiber brand, Surf2Sawa.
- Enterprise Surge: The enterprise segment saw a 15% year-on-year revenue increase, fueled by government contracts and digital transformation initiatives in the banking sector.
- Balance Sheet: Management emphasized that the capex program is “fully funded” through internally generated cash flow and existing credit lines, dismissing concerns about the need for immediate new debt.
Converge CEO Dennis Anthony Uy highlighted that the 2026 spending is an “investment in the future of the Philippine digital economy.”
“We are no longer just an internet service provider. We are building the highway for AI, cloud computing, and the next generation of digital services in the Philippines. Our capex remains firm because we believe the infrastructure we build today will define the country’s competitiveness tomorrow.” — Dennis Anthony Uy
In response to recent warnings from HSBC regarding a potential 50-bps interest rate hike by the BSP in June, Converge CFO Maria Grace Uy noted that the company has proactively managed its debt profile. Most of Converge’s existing debt is at fixed rates, providing a buffer against rising borrowing costs that might otherwise affect capital-intensive firms.
