Converge to upgrade speed of residential base plans for free

Converge Information and Communications Technology Solutions Inc. on Thursday said it will upgrade the speed of residential base plans for free, following double-digit gains reported in the third quarter of the year.

In a regulatory filing, Converge said it will permanently double the speed of the base FiberX Plan 1500 to reach up to 200 megabits per second (Mbps) starting Friday, November 11, 2022.

It will also implement similar boosts for existing subscribers of the FiberX Plan 2500 to 600 Mbps, while maintaining the 800Mbps speeds for the FiberX Plan 3500.

Converge said it will also introduce two new plans — the FiberX Plan 2000 which will offer 400Mbps, and the FiberX Plan 7499 with 1 Gigabit per second (1Gbps).

“As Converge has designed its network with significant built-in capacity, the announced speed-increases come without any need for incremental capital expenditures for the company,” it said.

Converge has allocated some P26 billion to P28 billion for its spending program this year, mainly to finance its national fiber backbone expansion.

The company’s net income after tax climbed by 11% to P2.157 billion in July to September from P1.946 billion the same quarter last year, as revenues jumped to P8.427 billion from P7.050 billion.

Converge said revenues from its enterprise business marked the sixth straight quarter of accelerated growth rates at 29%, while its SME business saw a 68% growth in revenues during the period.

Compared with September 2021, SME customers hit over 31,000 to reflect a 77% increase, while its wholesale segment grew by 52% as the company increasingly monetized the capacity of its domestic fiber network and international cables.

Cost of services for the quarter grew by 26% to P3.319 billion from P2.636 billion, while other expenses increased by 52% to P386 million from P254 million.

The latest figures brought the year-to-date net income up 17% to P6.107 billion from P5.198 billion, with revenues up 30% to P24.481 billion from P18.831 billion.

Shares in Converge were trading at P11.28 apiece as of 10:42 on Thursday, up by 18 centavos or 1.62% from Wednesday’s finish of P11.10. —KBK, GMA Integrated News