Thomas Pang, CEO of Keppel T&T (left) and Converge CEO Dennis Anthony Uy (Right) signed three agreements this morning setting in motion Converge’s US$100-million investment in the Bifrost Cable System.
Keppel Telecommunications & Transportation’s (Keppel T&T) wholly-owned subsidiary, Keppel Midgard Holdings Pte. Ltd. (KMH), and leading Philippine internet service provider Converge ICT Solutions Inc. (PSE: CNVRG) held an online signing ceremony last May 25, 2021 to enter into the definitive agreements for the participation of Converge in the Bifrost Cable System project. The Bifrost Cable System will directly connect Singapore to the west coast of North America.
Signed by Keppel T&T CEO Mr Thomas Pang and Converge CEO Mr Dennis Anthony Uy, the agreements provide for the grant of an Indefeasible Right of Use (IRU) to Converge for one fiber pair on the main trunk of Bifrost Cable System. In addition, KMH and Converge will jointly develop a branch on the Bifrost Cable System that will land in Davao, Philippines, with Converge also being granted an IRU on the entire Davao branch. Converge will also be appointed as the landing party for the Davao branch segment. Converge will invest over US$100 million (around PhP5 billion) for the whole project.
Mr. Thomas Pang, CEO of Keppel T&T, said, “We are pleased to strengthen our relationship with Converge through our collaboration on this significant transnational infrastructure project. The Bifrost Cable System will enable greater ASEAN inter-connectivity, as well as greater connectivity between Southeast Asia and the west coast of North America, bringing significant benefits to the region’s governments, businesses and consumers.”
Mr. Dennis Anthony Uy, CEO of Converge, said, “The additional Davao branch for the Bifrost Cable System will significantly increase internet speeds and network diversity for businesses and consumers in the Philippines for a better digital experience. Our investment into this cable system also gives us two direct international links, one going to Singapore and the other one going to North America with a design capacity of up to 15Tbps in each direction.”
Expected to be completed in 2024 and spanning over 15,000 kilometers, the Bifrost Cable System is the world’s first subsea cable system that directly connects Singapore to the west coast of North America via Indonesia through the Java Sea and Celebes Sea. It will connect Singapore, Indonesia, the Philippines, Guam, and the west coast of North America.
The Bifrost Cable System will boost the connectivity of the region’s governments and businesses, including cloud operators, telecommunications operators, network providers, over-the-top (OTT) providers, data centres, governments, enterprises, and consumers by offering them competitive pricing and capacity resilience.
Construction of the Davao branch is subject to the relevant regulatory permits and licences being obtained. As the transaction proceeds, Keppel T&T will make the necessary announcements when there are material developments.
