Converge eyes investments in new international undersea cables

MANILA, Philippines — Broadband specialist Converge ICT Solutions Inc. plans to invest in new international cable systems to support the resurgent demand for data centers in Asia and other territories.

In an interview with reporters, Converge chief operating officer Jesus Romero said the firm may enter into new agreements to lay down undersea cable systems to bolster its data capacity.

“A lot of parties are talking to us. I think two cables would not be enough. We are still looking at further investments as they come along,” he said.

Romero pointed out that international cable systems are needed for the Philippines to transition into a data center hub. The country hopes to attract investments from tech giants like Amazon, Facebook and Google looking for additional storage to accommodate users’ data.

Last year, Converge signed an agreement with Singapore-based Keppel Midgard Holdings Pte. Ltd. to connect to the Bifrost cable system. The firm owned by billionaire Dennis Anthony Uy will invest P5 billion to hook up to Bifrost, which will link Singapore to North America upon completion in 2024.

Under the deal, Converge and Keppel Midgard will work together on putting up a branch of the Bifrost that will land in Davao City.

The Bifrost cable system provides Converge access to two international links – one in Singapore and another in North America – adding a capacity of 15 terabits per second each way.

Romero said the Bifrost could serve as one of the triggers for the Philippines to graduate into a data center hub, especially as it links to Singapore where Facebook is building a headquarter.

“The reason Bifrost is actually the first project that we have is because Facebook is doing from US all the way to Singapore a large data center. Facebook also has a presence in Taiwan, but it is not as big as in Singapore,” Romero said.

“We are in the middle of everything, so why are we not a data center hub? Part of it is because of the lack of submarine cable. That’s why an open cable system like Bifrost is important. When that happens, I think they (tech giants) will really begin to take a look at us,” he said.

Also, Converge will connect to the Southeast Asia Hainan-Hong Kong Express Cable System, a subsea cable link expected to be delivered by 2024.

The submarine cable system – which will traverse China, Hong Kong, Malaysia, the Philippines, Singapore and Thailand – has at least eight fiber pairs in its infrastructure and a design capacity of 160 terabits per second.