Converge ICT Solutions Inc. on Thursday bared plans launching its prepaid fiber-to-the-home broadband service by June this year, targeting the low-end market nationwide.
“This is the next source of growth. We are still growing very well for postpaid, but it will provide an additional pot on revenue potential in the growth of the company,” Jesus “Boboy” Romero, chief operations officer, told reporters in a virtual briefing.
Surf2Sawa is a prepaid FTTH plan with various top-up options, for as low as P50 per day up to P700 for a 30-day unlimited connectivity
The new prepaid FTTH service will serve the Class D2 market of about 9.3 million households.
According to the Philippine Statistics Authority’s 2021 Family Income and Expenditure Survey, some 26.4 million households are still highly underpenetrated with reliable fixed broadband service.
At present, Converge has 28,995 residential prepaid subscribers and postpaid subscribers of another 1.89 million.
The company targets 120,000 prepaid subscribers this year and between two to three million prepaid subscribers over the next three to five years.
For this year, Uy projects the prepaid segment to contribute P500 million to its revenue pot.
In the first three months, Converge posted consolidated revenue of P8.64 billion, up 11.5 percent from P7.74 billion in the same period last year.
Revenue from residential business grew 8.6 percent to P7.4 billion from P6.8 billion last year, while enterprise revenue grew 32.8 percent to P1.24 billion.
The company booked net income of P2.17 billion during the period, up 10 percent from P1.97 billion last year.
