Converge inks ‘definitive agreements’ with Keppel T&T to participate in subsea cable system project

Fiber internet service provider Converge ICT Solutions Inc. on Thursday said it entered into “definitive agreements” with Singapore-based Keppel Telecommunications & Transportation (Keppel T&T) for its participation in the Bifrost Cable System project.

In a disclosure to the Philippine Stock Exchange, Converge ICT said the definitive agreements were signed by Keppel T&T CEO Thomas Pang and Converge CEO Dennis Anthony Uy during an online signing ceremony on March 25.

The internet service provider said the agreements provide for the grant of an Indefeasible Right of Use (IRU) to Converge ICT for one fiber pair on the main trunk of Bifrost Cable System.

The Bifrost Cable System will directly connect Singapore to the west coast of North America.

In addition, Converge ICt and Keppel T&T parent firm Keppel Midgard Holdings Pte. Ltd. (KMH) 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 ICT said it will invest over $100 million or around P5 billion for the project.

“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,” Uy said.

Pang, for his part, 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.”

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 centers, 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 licenses being obtained, Converge ICT said.

As the transaction proceeds, Keppel T&T will make the necessary announcements when there are material developments, it said. — RSJ, GMA News