Converge to Invest Over $100 Million in Submarine Cables

An international submarine cable system is set to be built by giants in the global technology industry and Converge ICT Solutions hopes to secure a slot to significantly improve its internet capacity.

The 15,000-kilometer (km) submarine cable project, known as the Bifrost Cable System, will span from Singapore to the West Coast of North America also including a branch to the Philippines. Converge had recently announced its plans on Wednesday to invest more than $100 million in the project.

The firm has already signed a “binding term sheet” with Singapore-based Keppel Telecommunications & Transportation, one of the key builders of the Bifrost Cable System alongside Facebook and Indonesia’s PT Telekom. The project is expected to be completed in 2024.

Submarine cables essentially enable broadband companies to provide their consumers with faster connections and better internet quality at lower rates. As per the agreement, Keppel will allow the use of one fiber pair on the main trunk of the Bifrost Cable System according to Converge.

Access to a single full fiber pair would allow Converge to achieve up to 15 terabits per second of internet capacity supporting the firm’s goal target of covering 55% of all households in the country by 2025, said Converge founder and CEO Dennis Uy.

“This is an important milestone not just for Converge, but also for the Philippines as we expect to experience faster internet speeds and greater resiliency within our fast-growing fiber network with the completion of this project,” Uy explained on Wednesday.

The deal is still subject to negotiations and regulatory approvals. Converge is also set to finish a separate 1,800-km submarine cable project that will connect the main islands of the Philippines.

Source: Inquirer