MANILA, Philippines — Connectivity firms Converge ICT Solutions Inc. and Dito Telecommunity Corp. have decided to work together and have signed an agreement to share their cable assets to expand their coverage and improve services.
Converge and Dito entered into a master facilities provisioning agreement (MFPA) for the sharing of select land-based and underwater resources to broaden their respective footprints.
The MFPA enables Converge and Dito to increase their network redundancy in the areas where they offer their broadband and wireless services.
In essence, Converge CEO and co-founder Dennis Anthony Uy said the deal allows the parties to use each other’s cable assets in delivering connectivity. Further, the collaboration strengthens the backend networks of both players, enhancing the consistency and reach of their infrastructure.
In turn, subscribers of Converge and Dito can expect fewer downtime and quicker throughput as a result of the agreement. This also means that both companies can hopefully incur savings now that their infrastructure systems are backed by another network.
Converge and Dito will sign separate facilities agreements to implement their asset sharing deal, specifying their respective roles in cable mapping, line maintenance, and service restoration.
Converge managed to end 2023 operating about 9.5 million ports that passed through around 18 million homes across the archipelago.
Meanwhile, Dito CEO Ernesto Alberto said the partnership is expected to cement the credentials of Converge as a specialist in fiber broadband and Dito as the fastest growing telco.
As of September last year, Converge has acquired two million subscribers, reaping the benefits of its gamble to enter the low-cost segment. Right now, Converge offers a suite of broadband services that cater to the needs of all economic classes.
Converge entered the prepaid market to maximize its folder of fiber cables. Based on latest data, Converge maintains 8.79 million ports, with 2.09 million customers, leaving it with nearly seven million lines that remain unutilized.
Meanwhile, Dito plans to cover at least 84 percent of the Philippine population this year to pass its final technical audit with the government and continue with its expansion that is supported by a $3.9 billion loan which it had secured from foreign banks last year.
For this year, Dito plans to sign up as many as 20 million customers in the mobile market, and another 100,000 subscribers in the broadband segment.