BUKIDNON STATE UNIVERSITY

Malaybalay City, Bukidnon 8700, Philippines

Tel (088) 813-5661 to 5663; TeleFax (088) 813-2717,

www.buksu.edu.ph College of Technologies

Cyber James S. Belmes

Nikko Lloyd Padilla

Rico T. Pando

IT STUDENT | T273 (BSIT 2E)

IT 122 - Elective 1 - Platform Technologies

JOSEPH ABELLA

INSTRUCTOR
Table of Contents

I. Basic details of the chosen Organization/Business

II. Background/Summary of the organization/business
A. Company History
B. Mission Statement
C. Vision Statement (if available)
D. Core Values (if available)
III. SWOT Analysis Matrix

A. Strengths

B. Weaknesses

C. Opportunities

D. Threats

IV. Summary and Recommendations

A. Short Term (now)

B. Mid-Term (next 12 months)

C. Long Term (next 3-5 years)

V. References and Citations

A. Use APA Format (7th Edition) for Citations and references.

I. Basic details of the chosen Organization/Business
Overview

Converge ICT Solutions Inc., commonly referred to as Converge (also known as ComClark in Pampanga), is
a telecommunication service provider in the Philippines. It operates fiber optic broadband networks, Internet
Protocol television (marketed as Converge Vision; in partnership with Pacific Kabelnet), cable
television (marketed as Air Cable), and cable Internet (marketed as Air Internet) in the country. It had
1,969,663 FiberX subscribers as of June 2023 capturing 54% of the market share of fiber to the home in the
country. As of 2022, the Converge fiber backbone reached 600,000 kilometers, passing through 495 cities and
municipalities across the country.

Converge Information and Communications Technology Solutions, Inc. (“Converge” or the “Company”) is the
fastest-growing high-speed fixed broadband operator in the Philippines. We are the only pure-play high-
speed fixed broadband provider, with an exclusive focus on serving the Philippines with industry leading
optical fiberbased connectivity services. This singular focus on high speed fixed broadband services is deeply
ingrained in our organization, which permeates all aspects of our operations, including our network roll out,
product and service offerings, sales and customer service.

Converge was listed on the Philippine Stock Exchange (“PSE”) on October 26, 2020 under the ticker symbol
CNVRG, marking another historic milestone for the Company in 2020. With an offering size of PHP25 billion,
our Initial Public Offering was the largest IPO on the PSE at that time since 2016. As a publicly listed company,
Converge has also started to disclose information on our environmental, social, and governance impacts for
the year ending December 31, 2020 in Exhibit 2 of this Report. With our commitment to providing quality
services to our subscribers, we are mindful of our impact to the environment and the communities we operate
in and of our compliance to best governance practices. In 2020, a new normal has emerged due to COVID-19,
driving a permanent paradigm shift in connectivity requirements. As the Philippines continues to adapt to the
challenges posed by the pandemic, our mission of connecting the underserved and unserved areas of the
country with high quality fiber broadband connectivity services has become even more critical. By providing
reliable and affordable broadband services that can support work-from-home (“WFH”), online-learning or
tele-medicine arrangements, we are committed to support the lives of people and the connectivity
requirements of businesses in these challenging times.
II. Background/Summary of Organization/Business

A. Company History

Converge was established in 1996 as the ComClark Network and Technology Corp. by Dennis Anthony Uy in
1996 at Angeles City.

In 2009, the Congress of the Philippines enacted Republic Act No. 9707, to grant Converge ICT Solutions Inc.
the franchise to construct, install, establish, operate, and maintain a telecommunication system throughout the
Philippines.

In 2020, Converge ICT Solutions Inc. debuted in the Philippine Stock Exchange through an initial public
offering.

In 2021, Uy told local media that a deal “is on” with Satellite Internet provider Starlink.

Demand for services surged during the pandemic, with an estimated 84% jump in revenue during the first
quarter of the 2021 fiscal year.

In 2021, the company also partnered with the Department of Trade and Industry (DTI) and local governments
to provide free fiber-powered internet and tents at Diskwento Caravan.

In October 2021, Converge ICT completed the domestic subsea cable project, with ₱6 billion investment cost.

Service areas

Converge ICT serves fiber optic Internet access in Metro Manila, Calabarzon, Central Luzon and several parts
of the Bicol and Ilocos regions, and continues to expand its coverage across the country.Converge ICT
competes with PLDT and Globe Telecom as providers of fiber-to-the-home broadband Internet, in their
respective areas of coverage. As of March 2022, it has around 1.8 million subscribers, all of whom are in
Luzon, Visayas, and Mindanao.

B. Mission Statement

Delighting customers by taking care of our own.

C. Vision Statement

World Class ICT Organization that empowers people, business and the nation to be their best

D. Core Values

Integrity, Customer Focus, Teamwork, Empowerment, Excellence and Velocity in its daily operations.
III. SWOT Analysis Matrix

A. Strengths

 Reputable brand - Converge ICT Solutions Inc. is a well-known telecommunications provider in the
Philippines with a good track record of providing trustworthy and excellent services.

 Broad-ranging fiber optic network - Converge ICT Solutions Inc. is the owner of the biggest pure end-to-
end fiber optic network in the Philippines. The company now outperforms its rivals in terms of speed and
capacity.

 Growth of the clientele - Converge ICT Solutions Inc.'s clientele is rapidly growing. The company's
subscriber base has grown by more than 50% in the last five years.

 Innovative goods and services - Converge ICT Solutions Inc. is constantly thinking of fresh, creative
methods to offer goods and services. The company offers voice over IP, fiber optic internet, digital
television, broadband, and a variety of other products and services.

 Well-positioned financially - Converge ICT Solutions Inc. is in a well-positioned financially. In terms of

balance sheet health and cash flow, the company is doing well.

B. Weaknesses

 Restricted geographical reach - Converge ICT Solutions Inc.'s main area of business is the Philippines. The
company's potential for expansion is so limited.

 Infrastructure provided by third parties - Converge ICT Solutions Inc. depends on outside infrastructure
to provide certain of its services. This may leave the business open to interruptions in the infrastructure of
third parties.

 High customer attrition rate - Converge ICT Solutions Inc. experiences a high rate of client attrition. This
is because the Philippine telecommunications sector is extremely competitive.

C. Opportunities

 Increasing demand for broadband services - Throughout Southeast Asia, including the Philippines, there
is a sharp increase in the demand for broadband services. Converge ICT Solutions Inc. has the chance to
take advantage of this by growing its clientele through strategic alliances and local acquisitions.

 Emerging technologies - Converge ICT Solutions Inc. may leverage cutting-edge technologies, such 5G
and artificial intelligence (AI), to create new goods and services in the domains of cloud-based gaming,
telemedicine for healthcare, and smart home solutions.

 Extension into underserved markets - To close the digital divide and give more Filipinos access to the
internet, Converge ICT Solutions Inc. can extend into underserved and unserved areas of the Philippines,
especially in rural and isolated locations.
 To increase its market share and reach in Southeast Asia, collaborate with regional telecom companies.

 Create cloud-based services and digital entertainment products to meet the Philippines' and Southeast
Asia's increasing demand for them.

 To keep up with technological advancements and innovative trends, allocate resources into research and
development.

 To lower attrition and raise customer satisfaction, it should improve customer service.

 Improve cybersecurity defenses against assaults to safeguard network and consumer data.

D. Threats

 Heightened rivalry - The Philippines' telecom market is characterized by intense competition. The market
share of Converge ICT Solutions Inc. is continuously under pressure from both new and established
competitors. Converge ICT Solutions Inc. needs to maintain its competitive edge by delivering exceptional
customer service, innovation, and competitive pricing.

 Regulation - There are strict regulations governing the telecommunications sector. Converge ICT
Solutions Inc.'s operations may be negatively impacted by changes to Philippine government rules, such
as higher spectrum usage costs or additional licensing requirements. Converge ICT Solutions Inc. should
keep up good contacts with government regulators and be aware of impending regulatory changes in
order to reduce these risks.

 Cybersecurity risks - Converge ICT Solutions Inc. is susceptible to ransomware, malware, and data breach
attacks. These risks have the potential to impair business operations, harm the company's brand, and
result in losses of money. Converge ICT Solutions Inc. should spend money on cybersecurity measures
including intrusion detection systems, firewalls, and data encryption in order to defend itself from
cyberattacks.

Recommendations

Global expansion:

Converge should take advantage of its advantages and capabilities to extend its business operations into other
regions, especially Southeast Asia. Creating alliances with regional telecom carriers or purchasing already-
existing businesses in the area could be part of this expansion.

Portfolio diversification:

To increase its revenue streams and lessen its dependency on fiber optic internet, Converge should broaden
the range of products and services it offers. Offering cloud computing, cybersecurity, and digital
entertainment services are a few examples of this diversification.

Addressing the increasing demand for reliable internet services:

To satisfy the growing demand for dependable and fast internet services, Converge should make investments
in modernizing its network and extending its coverage. This will assist the business in drawing in new clients
and keeping hold of current ones.

IV. Summary and Recommendations

A. Short Term (now)

Converge is now the fastest-growing fixed broadband service provider in the Philippines. It is also the first to
run an end-to-end pure fiber internet network in the country, having rolled out over 647,000 kilometers of
fiber optic cable network nationwide.
Converge’s journey has always been anchored on the dream of digital democracy. Making this dream a reality
means understanding what the people both need and want. Initially, it was simply high-speed broadband
connections, with no data caps, at an affordable price point. But the needs of consumers have since evolved—
and Converge is raring to meet them, wherever you are in the country.
According to the 2023 Global Digital Report by Meltwater and We Are Social, 95.8 percent of internet users
play online video games. That is over 43 million gamers and gaming enthusiasts who need consistently great
network speed with low latency.
Recognizing this opportunity, Converge has launched FiberX Gamechanger, the country’s first residential
internet offering that is designed for gamers. With a built-in prioritization feature, users can enjoy their games
with low packet loss, low jitter, and low latency with ultra-high speeds.
You can power up your existing Converge broadband plan or get a new connection to enjoy speeds of 400
Mbps (for P2500) up to 8000 Mbps (for P5000), with an Asus gaming router thrown in. As the connectivity of
choice of famous Filipino esports players like L3bron, Manjean Faldas, and Ayeesha Cervantes, Gamechanger
recently powered up the very first Philippine Basketball Association Esports Bakbakan league, where all
twelve franchise teams of the PBA competed in Mobile Legends: Bang Bang.
Recommendation:
Continue to invest in network expansion and upgrades:
Converge should keep making investments in increasing its fiber optic network and modernizing its current
infrastructure. By doing this, the business will be able to guarantee that its clients receive the greatest
experience possible.
Expand its product offerings:
Converge should expand its product offerings to include new and innovative services that appeal to a wider
range of customers. This could include bundled packages that combine internet, television, and mobile
services, as well as cloud-based services.
Enhance customer service:
Converge should continue to invest in enhancing its customer service to ensure that its customers are satisfied
with the support they receive. This could include investing in training for customer service representatives,
expanding self-service options, and offering 24/7 support.
 B. Mid-Term (next 12 months)

Converge Information and Communications Technology Solutions, Inc. (Converge) is planning to issue debt
securities worth up to ₱20 billion. The first tranche of the debt securities will be issued in the form of peso-
denominated fixed-rate bonds with a principal amount of up to ₱5 billion. Converge may issue additional
tranches of debt securities within three years of the effectivity of the registration statement. The proceeds from
the issuance of the debt securities will be used to finance Converge's capital expenditures, working capital
requirements, and debt refinancing.

Recommendation:

Pursue strategic partnerships:

Converge should pursue strategic partnerships with other companies in the telecommunications industry to
expand its reach and capabilities. This could include partnerships with other broadband providers, content
providers, and technology companies.

Explore new markets:

Converge should explore opportunities to expand into new markets, both domestically and internationally.
This could include expanding into underserved areas in the Philippines, as well as expanding into new
countries in Southeast Asia.

Invest in research and development :

Converge should invest in research and development to stay ahead of the curve in the telecommunications
industry. This could include developing new technologies, such as 5G and fiber-to-the-home (FTTH), as well
as exploring new ways to deliver broadband services.

C. Long Term (next 3-5 years)

Converge is issuing 5-year bonds worth up to ₱5 billion. The bonds will have a fixed interest rate of 5.5942%
per annum and will be paid quarterly in arrear. The bonds are rated PRS Aaa by PhilRatings, the highest
credit rating on their long-term credit rating scale.

Recommendation:

Establish Converge as a leader in next-generation technologies:

Invest in research and development (R&D) to explore the potential of emerging technologies such as AI, IoT,
and 5G.

Develop prototypes and test next-generation solutions in controlled environments.

Collaborate with industry partners and standards organizations to shape the future of next-generation
technologies.

Develop as a preeminent supplier of integrated digital solutions:

Present Converge as a one-stop store providing digital, internet, and phone services.

Create an integrated ecosystem of goods and services that work well together.

Provide comprehensive solutions that cater to the various demands of both businesses and consumers.

Establish yourself as a well-known industry leader who sets the bar high and shapes consumer behavior.

Expand internationally:

Conduct thorough market research and assess Converges readiness before embarking on international
expansion.

Choose an appropriate entry strategy, such as exporting, licensing, franchising, or joint ventures.

Establish a legal presence and comply with all local laws and regulations in your chosen market.

Build partnerships with local entities to gain market insights and expertise.

Adapt your marketing and sales strategies to the local culture and preferences.

Assemble a strong management team with international experience and establish effective communication
practices.

Identify, assess, and manage potential risks associated with international business operations.

Stay adaptable to changing market conditions, regulations, and cultural trends.

Conclusion:

Converge ICT Solution is in a strong position to maintain its success and expansion in the Philippines and
beyond. Converge can sustain its customer base by sticking to its core competencies of offering high-speed
internet services, diversifying its product portfolio, and improving customer support. Converge can also
create the conditions for sustained growth and leadership in the telecom sector by pursuing strategic alliances,
investigating untapped markets, and allocating resources to research & development.

V. References and Citations

Wikipedia contributors. ( November 2023 ). Converge ICT Inc.

https://en.wikipedia.org/wiki/Converge_ICT/

Converge ICT Solution. (n.d.). CNVRG FY2020 17A.

https://corporate.convergeict.com/wp-content/uploads/2020/10/CNVRG_FY20_17A_vF.pdf

Studocu. (n.d.). Finance - Converge ICT Solution Inc., a high speed fixed
https://www.studocu.com/ph/document/caraga-state-university/finance/55399791

Converge-Final-Prospectus.(2022).
https://corporate.convergeict.com/wp-content/uploads/2022/03/vF.pdf