Converge ICT Solutions Inc. said on Tuesday it is doubling the data transmission capacity of its metro backbone as it prepares for the use of “next-generation, hyper-scale capacity applications over its fiber optic network.”
Dennis Anthony H. Uy, the company’s CEO, said the group is doubling its data transmission capacity from 400 Gigabits per second (Gbps) to 800 Gbps as the Philippines continues to implement digital transformation initiatives.
“Developments in cloud computing, big data, virtual reality, combined with the increasing demands on remote storage and streaming technology is creating massive demand on our network and data centers. We want to respond to the high-capacity needs of our network and customers, and to be able to accommodate any new-generation technologies they may have,” said Uy. Converge’s metro backbone connects multiple networks together, allowing them to communicate with each other and push traffic between and among them.
Uy said that with the doubling of its capacity, Converge will be able to “dramatically” push more data through data centers, decrease latency, and allow for high-speed data transfers for new technologies, such as the Internet of Things (IoT) and Smart Cities.
In layman’s term, Converge COO Jesus C. Romero explained, 800 billion bits per second will allow an individual to download a data-intensive game and 20 high-definition movies in just one second.
“At the same time, this latest technology allows us to use less hardware to efficiently deliver our services, limits the possibility of congestion whether in normal or outage situations, and reduces our energy consumption and cost,” Romero said.
Converge activated its first 400 Gbps metro backbone last year, providing it with a “programmable, dynamic setup of connections that increases adaptability and resiliency.”
Converge saw its profit tripling to P1.55 billion from P574 million, thanks to growing demand for Internet connectivity to the home during the first quarter.
The rise in net income was complemented by the Corporate Recovery and Tax Incentives for Enterprises Law, which reduced the company’s taxes to 21 percent during the quarter under review.
The company’s top line rose by 83.6 percent to P5.55 billion from P3.02 billion, driven by its residential and enterprise businesses.
Converge expects to end the year with about 1.6 million to 1.7 million subscribers.
The company is gearing up to corner a chunk of the highly-unsaturated home broadband market by 2025. It is currently building a national backbone that will allow it to reach approximately 55 percent of the total households in the Philippines.