Converge ICT Solutions Inc. has secured Singapore’s approval to sell international connectivity within the city-state, as the company expands its international footprint.
In a disclosure sent to the Philippine Stock Exchange on Wednesday morning, Converge indicated that its Singapore subsidiary, Converge ICT Singapore Pte. Ltd., can start business now.
“Effective January 3, 2023, Converge SG can start deploying telecommunications infrastructure and provide connectivity services and fiber optic cable capacity to wholesale and enterprise customers in the Southeast Asian city-state,” the company said.
Converge explained that telco companies and internet service providers often buy wholesale bandwidth to augment and supply bandwidth capacity for their connectivity needs such as email, file sharing, and web hosting. Converge’s wholly-owned unit will be servicing these offerings.
Converge announced the incorporation of its Singapore subsidiary back in 2021, targeting its intent for a presence in Singapore.
The fiber internet company wrote a grant letter to Singapore’s Infocomm Media Development Authority (IMDA). The agency, under Singapore’s Ministry of Communications and Information, gave Converge a facilities-based operations (FBO) license.
Converge explained that the license gives them the authority to provide international connectivity services within the city-state. The services include ethernet-international private line service, dedicated internet access service, carrier ethernet network service, internet protocol virtual private network services using multiprotocol label switching, and sale and resale of submarine cable capacities.
The disclosure also noted the creation of its Singapore subsidiary demonstrates its commitment to position its wholesale unit as a growth driver for the company’s enterprise segment. Converge reckoned that its wholesale segment expanded 52% in the third quarter of 2022 on the back of its efforts to increase its domestic and international fiber footprint.
“The grant of an FBO license to our Singapore unit significantly bolsters the ability of the Converge Group to sell international wholesale connectivity and capacity services, as we can now directly service clients in Singapore to cater their growing needs for intra-Asia and Trans-Pacific connectivity requirements,” Dennis Anthony Uy, company chief executive officer and director of Converge’s Singapore unit.
As of market recess Wednesday, shares in Converge were trading up by over 4%. Philstar