Converge ICT Solutions Inc. has expressed interest in a deeper collaboration with DITO Telecommunity Corp. down the line like venturing into mobile broadband services at some point.
Dennis Anthony Uy (DAU), Converge co-founder and chief executive, said while the mobile business is not their core focus, he see synergies in partnering with DITO.
“Maybe in the future we can do some collaboration with a marketing arrangement that’s a deeper partnership. So maybe they can sell fixed [broadband] and we can sell mobile broadband but co-branding differently,” Uy said.
“There’s a lot of things that will happen that is why I said abangan ang susunod na kabanata (wait for the next chapter)” he added.
This developed after Converge and DITO signed a landmark master facilities provisioning agreement (MFPA) that will allow the partners to share select terrestrial and submarine fiber optic cable assets.
The resource exchange arrangement will strengthen the network of both and translates to expanded coverage and increased redundancy. It should also create savings from increased operational efficiencies and reduce the capital expenditure requirements for both companies.
Uy said that its business remains “quite strong” and forecast to persist along this path this year.
“I think we ended up close to P36 billion (in revenue) last year,” he said. This was higher than consolidated revenue of P33.7 billion the business reported in 2022.
Converge earlier reported net income of P6.26 billion from January to September or 2.6 percent higher than only P6.1 billion in the same period last year.
Consolidated revenue grew 7.2 percent to P26.2 billion in those nine months from P24.5 billion last year.
Its residential business segment grew 5.2 percent to P22.5 billion from P21.4 billion a year earlier.
Converge reported subscribers totaling 2.04 million as of end-September 2023.
Enterprise revenue rose 22.5 percent to P3.8 billion from P3.1 billion last year owing to double-digit growth across all enterprise segments, with the small and medium enterprise segment growing as much as 37.9 percent from the same period last year.
