(Converge ICT Chief Operating Officer shares a toast with President/CEO Dennis Anthony H. Uy, Grace Y. Uy, Chief Resource Officer and Saurabh Agrawal, Warburg Pincus managing director after the signing of an investment deal that infused $250 million dollars into Converge ongoing projects.)
(Converge ICT officials led by Dennis Anthony H. Uy, president/CEO; Grace Y. Uy, chief resource officer and Jesus C. Romero, chief operating officer pose for a posterity photo with Sec. Gregorio Honasan of the Department of Information and Communications Technology, U.S. Ambassador to the Philippines Sung Kim and Saurabh Agrawal, managing director for Warburg Pincus after the signing of a $250 million dollars investment deal between the two companies.)
Fiber internet and cable television company Converge ICT Solutions Inc. signed an investment deal recently with Warburg Pincus LLC, an American private equity firm, to strengthen its current capabilities as it aims to improve and upgrade the online experience of Filipinos.
Converge President and CEO Dennis Anthony H. Uy said the partnership with Warburg Pincus will allow Converge to reach more people and thereby serve more Filipinos by providing the kind of internet access needed to thrive in today’s world and offer the most affordable service plans, the first step to serving the people is by reaching them.
Uy lamented that currently, internet rates available in the Philippines are so high-priced that the number of underserved and unserved people is still at an alarmingly high level.
He explained that presently, only 63 percent of the Filipino population have direct access to the internet.
“Given how vital connectivity is in today’s lifestyle, that figure shows how considerable the gap to be bridged is. We need more investors in the IT industry. This is where Converge ICT can truly make a national impact,” Uy pointed out.
He explained that since they went full throttle with the roll-out of their fiber network and package offerings, the change in overall internet performance has been noticeable.
“In 2018, the average internet speed increased to 18Mbps from the earlier 4Mbps, a move that has improved the Philippines’ ranking in the Southeast Asian Region in terms of broadband internet speed. Converge doesn’t take full credit but the company’s contributions has been undeniable,” Uy stressed.
He cited a study conducted by Nathan Institute and Oxford Institute showing the GDP’s correlation to an increase in percentage of the population having access to Information and Communications Technology (ICT).
Uy explained that the study indicated ICT can improve the over-all GDP by as much as one (1) percent that is why it is crucial for countries to have a strong national broadband infrastructure made available at a more affordable cost for the people because a 10-20 percent increase in the number of internet users in the population would speed up economic growth.
“We want nothing but the very best for the Filipinos. We have taken it upon ourselves to be the local world-class internet provider. That is our commitment to the Filipinos. To serve the under-served and un-served. Together, we will use technology to be what it has been set out to be: to make information more readily available, services faster, communities safer and life, in general, better. Convenience on-demand,” Uy stressed.
He said this partnership with Warburg Pincus will power the nation to dream even bigger as it will be the lead-in to how Converge have been consistently upholding its commitment to upgrade the Filipino online experience.
“We need to reinforce our efforts to ensure that we serve and save more Filipinos from bad internet. This partnership intends to take care of the nation through connectivity. By upgrading your way to access the world, we are uplifting the way you live. Today is one of the most important days in the digitization of the Philippines,” Uy pointed out.
Meanwhile, Warburg Pincus Managing Director Saurabh Agarwal said the through its long-term partnership with Converge, they hope will transform the lives of Filipinos across the Philippines and around the world, by bringing high-speed fiber broadband to each barangay in the country.
Agarwal said Warburg Pincus, the oldest growth investor in the world with a 53-year history of investing, was among the first private equity firms to invest in Asia, starting in China and India over 25 years ago, and in SEA about seven years ago.
He said that to date, Warburg Pincus have invested over US$70 billion in more than 800 companies in over 50 countries and currently have over US$60 billion under management and over US$20 billion available in new capital to invest behind exciting companies.
He said their company has sought to invest behind market-leading companies with superior management teams and sustainable competitive advantages.
“And we saw in Converge all of these core strengths. Converge exemplifies a company that is uniquely able to capitalize on attractive macro fundamentals and secular tailwinds in the Philippines to grow, while at the same time, serving a critical yet unmet need of the Filipino people,” Agarwal said.
He narrated that when Dennis and his wife Grace set-out to build Converge in 2012, they wanted to make high-speed internet accessible to the Filipino people. So, they went to the market with a simple value proposition: High-speed, high-reliability fiber broadband connectivity, at an affordable price point, accessible to as many households and businesses in the country who need it.
“Their vision and value proposition resonated well with many Filipinos, propelling Converge to become the fastest-growing telecoms company in the country. It is truly a remarkable business and growth story, and we attribute that to the leadership of Dennis and Grace, and the dedication of their teams. In the past 12 months that we’ve gotten to know them and their teams, I’ve seen how dedicated and persistent they’ve been in pursuit of excellence and growth,” Agarwal said.
He said the Philippines, with its young digital-savvy population and thriving services industries, combined with the country’s focus on infrastructure spending, is poised for further explosive growth, especially in the telecoms sector.
“Our US$250 million investment in Converge will enable us to participate in addressing these growth needs with fast, reliable and yet affordable internet. We intend to leverage both our domestic and international partners, that includes our partners in government, to bring to Converge all the support it needs,” Agarwal explained.
He said the funds from Warburg Pincus will help finance Converge’s plan to build a US$1.8-billion nationwide internet backbone.
Uy said the current rollout includes a US$70-million domestic submarine cable with 20 landing stations across the Philippines. The Luzon backbone will be substantially complete by the first quarter of 2020.
Eventually, Uy said he plans to connect the whole country and provide dependable broadband internet service to the people even in far-flung barangays.
