Converge says SpaceX partnership unlikely this year

A partnership between Converge ICT Solutions Inc. and Elon Musk's Space Exploration Technologies Corp. (SpaceX) is unlikely to be finalized this year, a Converge official said Monday.

In a virtual briefing, Converge Chief Executive Officer Dennis Anthony Uy said agreements could be made next year as SpaceX is prioritizing other areas.

"We are really not yet close with the agreement because I think they have priority in doing some in the American areas, more in the Caribbean," he told reporters.

"In Southeast Asia, I think maybe in a year, a year and a half," he added, noting that technical studies for the partnership are already being conducted.

Converge in February confirmed that it is in talks for a possible partnership with SpaceX, in efforts to bring high-speed broadband to far-flung areas across the country.

"To be able to complement the whole segment of the market is very important. Those who are not reachable by our network, this is the way. We need to partner with new technology," Uy explained.

Converge ICT Inc. CEO Dennis Anthony Uy says SpaceX partnership unlikely this year, but platform and tech are “coming soon.” $CNVRG pic.twitter.com/IK6dZ4pWRi

— Jon Viktor Cabuenas (@ViktorCabuenas) May 17, 2021

Among the factors being studied are the possible locations of the uplink stations across the country, with six or seven set to be established.

Uy said more satellites are also needed in the orbit to be able to firm the partnership, which he said could take time.

"I don't think that will happen this year, because you need the preparation of the earth station. In fact, you need to have a fiber-connected with an earth station to be able to have a right penetration and uplink and downlink to the satellite," he said.

Converge has allocated P20 billion for its capital expenditures this year, mainly for the expansion of its backbone and the deployment of additional fiber-to-the-home ports.

Converge on Monday reported a 177% increase in its total comprehensive income for the first quarter of the year to P1.549 billion from P574 million in 2020.

Revenues for the same quarter rose 84% to P5.547 billion from P3.021 billion, while the cost of services grew 110% to P4.797 billion from P2.287 billion.

Converge is set to roll out 1.5 million fiber ports this year, 10% of which will be deployed in the Visayas and Mindanao regions.

The company earlier said it is on track to reach over 15 million Philippine households by 2025, after doubling its fiber network in 2020.

Shares in Converge closed Monday at P18.78 apiece, up by 28 centavos or 1.51% from last Friday's finish of P18.50.  —KBK, GMA News