Converge int’l cable system lands in La Union

CONVERGE ICT Solutions, Inc. is further boosting its intra-Asia data capacity after its Southeast Asia Hainan-Hong Kong Express Cable System (SEA-H2X) landed in La Union.

“Building up the Converge international cabling capacity has always been a long-term investment and today, we see a major development on that front,” Converge Chief Executive Officer Dennis Anthony H. Uy said in a statement on Thursday.

This recent development is part of the company’s preparation for the region’s data capacity needs, Mr. Uy added.

“As early as now, we’re preparing for the region’s capacity needs, as far ahead as 10–15 years down the road,” he said.

The system is designed to have a capacity of 160 terabits per second, Converge said, adding that the Southeast Asia Hainan-Hong Kong Express Cable System targets to further increase the international capacity while also ensuring its undersea fiber links within the Asia-Pacific region.

Overall, the SEA-H2X has six landing points in Southeast Asia, namely: Hong Kong SAR (Tseung Kwan O), China (Lingshui), Malaysia (Kuching), Philippines (La Union), Singapore (Tuas), and Thailand (Songkhla).

“As an important large-bandwidth submarine system in the region, SEA-H2X will further upgrade connectivity to Hong Kong SAR, Hainan SEZ and Southeast Asia countries, boosting unimpeded trade, communication, financial integration along the route,” China Unicom Global (CUG) President Meng Shusen said.

Converge has said its international subsea cable, composed of the Bifrost cable system and the SEA-H2X, will be completed next year.

In 2022, the listed fiber internet provider said it was teaming up with CUG  China Mobile International Ltd. and  PPTEL SEA H2X Sdn. for the construction and operations of the SEA-H2X.

The SEA-H2X is a 5,000-kilometer submarine cable system connecting Hong Kong SAR China, Hainan China, the Philippines, Thailand, Malaysia, and Singapore.

The cable system is designed to provide “superior” connectivity to users and businesses in the Philippines, Converge said.

“It is seen to benefit institutions seen as large consumers of bandwidth such as outsourcing and offshore industry, including major contact centers, business process outsourcing providers, global financial institutions and a host of other multinationals,” the company said.

Converge said it is allocating the bulk of its P17 billion to P19 billion capital expenditure budget in 2024 for its subsea cable projects and data center development.

At the stock exchange on Thursday, shares in the company closed 70 centavos, or 4.79% higher, to end at P15.30 apiece. — Ashley Erika O. Jose