Converge ICT Solutions Inc. and DITO Telecommunity Corp., a subsidiary of DITO CME Holdings Corp., have officially signed a groundbreaking Master Facilities Provisioning Agreement (MFPA) aimed at fostering a strategic collaboration. This historic pact enables the telecom giants to share specific terrestrial and submarine fiber optic cable assets, subject to mutually agreed-upon terms and conditions.
The resource exchange arrangement marks a significant step toward fortifying the networks of both Converge and DITO Telecommunity, resulting in an expansion of coverage and heightened redundancy. Simultaneously, it is expected to generate cost savings through enhanced operational efficiencies and reduced capital expenditure requirements.
“We want to leverage our respective existing facilities through this resource-sharing agreement to bring us closer to our goal of empowering every Filipino home with quality broadband connectivity. Our collaboration will allow us to reach more customers and deliver a better service with increased resiliency,” according to Dennis Anthony H. Uy, Converge Chief Executive Officer and Co-Founder.
As of November 2023, Converge boasts a total fiber asset span of 682,000 fiber kilometers, reaching over 16.7 million homes, covering 62.3% of total households in the Philippines. DITO Telecommunity, on the other hand, operates over 7,000 cell sites, serving more than 80% of the population across 850 cities and municipalities. The network has garnered over 9.5 million activated subscribers, enjoying access to a pure 4G/5G network free from any legacy infrastructure constraints.
Converge’s Chief Operations Officer Jesus Romero emphasized the pivotal nature of this agreement, highlighting that it propels both networks to the forefront. The state-of-the-art pure fiber network of Converge aligns seamlessly with the cutting-edge network infrastructure of DITO Telecommunity.
The agreement is a testament to a pioneering effort to enhance network reliability, enrich fiber services for Converge’s two million customers, and fortify mobile services for DITO Telecommunity’s 9.5 million registered subscribers. This collaboration aligns with the Philippines’ digitalization initiatives, contributing to accelerated coverage expansion.
“Under the spirit of forging alliances and healthy competition, this agreement is a testament to both our organizations’ shared commitment to provide the best user experience that our customers deserve — whether consumer or enterprise,” said Ernesto R. Alberto, DITO Telecommunity Chief Executive Officer.
The partnership aims to reduce downtime, increase throughput, and ensure more reliable connectivity, ultimately enhancing the user experience for both Converge and DITO Telecommunity customers.
To implement the MFPA, separate Facilities Agreements will be crafted by Converge and DITO Telecommunity. These agreements will delineate crucial aspects such as the location (routes), service restoration procedures, and first-line maintenance of the covered facilities for each other’s usage.
At The Sidelines
At the sidelines of the MFPA signing event in BGC, Taguig earlier today, Uy discussed various aspects of their company’s strategy and plans for 2024. He emphasized the need to shift focus from existing industries to different types of innovation, particularly in the digital sector, including data centers, cloud services, and B2C platforms. He acknowledged the strong business demand but stressed the importance of aligning capital expenditures with revenue returns. Uy also highlighted ongoing activities and internal management efforts to enhance consumer experience. He said the company is actively involved in digital transformation, forming partnerships and participating in projects like Free Public WiFi for the government.
Alberto, from his side, emphasized the need for substantial capital for a serious market presence. Despite previous investments received, the DITO CEO believes that additional funds are required. He did mention plans to focus on monetization and commercialization, with a particular emphasis on enterprise products. Alberto added that he is anticipating increased data consumption with the evolution from 4G to 5G and the enablement of the Internet of Things (IoT).
The Filipino Tech Explainer’s Take
Personally, I applaud this development of cooperation between the two emerging telecommunications and Internet service giants: but why only now (we needed this yesterday)?! From my stance, I can see that the DITO – Converge ICT partnership will be a formidable player to go head-to-head against the Smart – PLDT Home and Globe – Globe at Home combos of our times. At the end of the day, it will be the telco and ISP subscribers who will have smiles on their faces due to competitive plans and packages at affordable rates.