Keppel T&T, Converge sign deal for capacity on undersea cable system
Converge will invest over $133m (US$100m) in the new project.
Keppel Telecommunications & Transportation (Keppel T&T) wholly-owned subsidiary Keppel Midgard Holdings (KMH) has signed a binding term sheet with Philippine fibre broadband provider Converge to grant the latter capacity on the Bifrost subsea cable system.
KMH will grant Converge an indefeasible right of use (IRU) for one fibre pair on the main trunk of the subsea cable system, which directly connects Singapore to the west coast of North America.
“We are pleased to partner Converge through Bifrost, which is a significant transnational infrastructure project, enhancing the interconnectivity between ASEAN countries. Through this partnership, we will be able to accelerate the growth of our connectivity platform,” Keppel T&T CEO Thomas Pang said.
The parties will also jointly develop a branch on the Bifrost Cable System that will land in Davao in the Philippines. Converge will be granted an IRU on the entire branch and will be engaged as a landing party for the branch segment.
“This is an important milestone not just for Converge but also for the Philippines as we expect to experience faster internet speeds and greater resiliency within our fast-growing fibre network with the completion of this project,” Converge CEO Dennis Uy said.
Converge will invest over $133m (US$100m) for the whole project, which is expected to span over 15,000 kilometres and to be completed in 2024.