Converge ICT Solutions, Inc. expects strong growth in its wholesale business as the newly enacted Konektadong Pinoy Law opens more opportunities for broadband expansion and infrastructure sharing across the country.

“The wholesale business is expected to boom. We still have several hundred municipalities that need fiber infrastructure, so expansion is definitely in our plans,” Converge Chief Executive Officer and Co-Founder Dennis Anthony Uy said during a virtual media briefing on Thursday.

Uy said the newly enacted law will help intensify competition while promoting faster network rollout through shared backbone and distribution systems.

He added that infrastructure sharing, proven effective in other countries, can lower costs and improve access to underserved areas.

“The Konektadong Pinoy Law is helping competition deepen, which opens up opportunities for faster rollout to communities,” Uy said.

The law is seen to support the government’s digitalization goals while enabling private players like Converge to reach more communities nationwide. 

Backed by this favorable environment, Converge posted a net income of P8.9 billion in the first nine months, up 8.4 percent from a year ago, as consolidated revenues rose 10.1 percent to P33 billion. The growth was fueled by the company’s expanding residential and enterprise businesses.

Residential revenues climbed 9.1 percent to P27.7 billion, with the subscriber base reaching nearly 2.93 million after adding almost 370,000 fiber users.

Meanwhile, enterprise revenues rose 16.2 percent to P5.2 billion, driven by strong gains in SME and wholesale segments.

Converge’s EBITDA, another key measure of profitability, grew 10.6 percent to P20.2 billion, with EBITDA margin improving to 61.2 percent, while its Return on Invested Capital remained at an industry-leading 18.2 percent. 

FiberX continued steady expansion, and prepaid product Surf2Sawa surpassed half a million subscribers, reflecting the company’s broadening digital services portfolio.