Converge ICT Solutions Inc., a Philippine internet service provider, has entered into “definitive agreements” with Keppel Telecommunications & Transportation to officially participate in the construction of a new subsea cable system.
The agreements provide for the grant of an “indefeasible right of use” to Converge for one fiber pair on the main trunk of the Bifrost Cable System, Converge said in a disclosure to the stock exchange.
Converge said it would invest around $100 million (about P5 billion) for the whole Bifrost Cable System which both parties plan to establish a branch that will land in Davao. Converge, meanwhile, will be appointed as the landing party for the Davao branch segment.
“The additional Davao branch for the Bifrost Cable System will significantly increase internet speeds and network diversity for businesses and consumers in the Philippines for a better digital experience,” Dennis Anthony Uy, CEO of Converge, was quoted as saying in a disclosure to the local bourse.
The undersea cable system — which will span more than 15,000 kilometers — aims to directly link Singapore, Indonesia, the Philippines, Guam, and the west coast of North America.
“Our investment into this cable system also gives us two direct international links, one going to Singapore and the other one going to North America with a design capacity of up to 15Tbps (terabits per second) in each direction,” the Pampanga-based businessman added.
The Bifrost Cable System project is expected to be completed by 2024, Converge ICT said.