Converge Information and Communications Technology Solutions Inc. said Wednesday it is investing more than $100 million in a trans-Pacific cable system in partnership with Keppel Telecommunications & Transportation.
Converge ICT said it signed a binding term sheet with Keppel T&T, a wholly-owned subsidiary of Keppel Midgard Holdings Pte. Ltd., for an indefeasible right of use for a fiber pair on the main trunk of Bifrost Cable System, which directly connects Singapore to the west coast of North America.
KMH and Converge will jointly develop a branch on the Bifrost Cable System that will land in Davao, with Converge also being granted an IRU on the entire Davao branch. Converge will be engaged as the landing party for the Davao branch segment.
The additional branch will significantly increase internet speed and network diversity for businesses and consumers in the Philippines.
Converge said it would invest over $100 million (around P5 billion) for the whole project.
“We are pleased to partner Converge through Bifrost, which is a significant transnational infrastructure project, enhancing the inter-connectivity between ASEAN countries,” said Thomas Pang, chief executive of Keppel T&T.
Converge chief executive Dennis Anthony Uy said this was an important milestone not just for Converge but also for the Philippines as the company was expecting faster internet speed and greater resiliency.
“Our investment into one full fiber pair, connecting us to Singapore and the west coast of North America, will allow us to independently activate at will up to 15 Tbps [terabits per second] of capacity to either country using the latest technology. Furthermore, our ongoing construction of our National backbone spanning the whole country will allow Converge to distribute this capacity from Davao to any point in the Philippines,” Uy said.
The Bifrost Cable System, to be jointly owned and developed with Keppel T&T’s partners, will be the largest capacity high-speed transmission cable across the Pacific Ocean when completed. It will bolster Singapore’s role as a digital hub in the region.
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 completion of the proposed transaction with Converge is subject to negotiation and execution of definitive agreements and relevant regulatory approvals.