Converge ICT Solutions Inc. and DITO Telecommunity Corp. Sign a Master Facility Provisioning Agreement

In a press release in PSE Disclosure dated January 12, 2024, Converge ICT Solutions Inc. and DITO Telecommunity Corp., a subsidiary of DITO CME Holdings Corp., have signed a Master Facilities Provisioning Agreement (MFPA) to share selected terrestrial and submarine fiber optic cable assets on mutually agreed terms and conditions.

This resource exchange arrangement will boost both operators' networks by increasing coverage and redundancy. Simultaneously, it will generate savings through improved operational efficiencies and lower capital expenditure requirements.

“We want to leverage our respective existing facilities through this resource sharing agreement to bring us closer to our goal of empowering every Filipino home with quality broadband connectivity. Our collaboration will allow us to reach more customers and deliver a better service with increased resiliency,” said Converge Chief Executive Officer and Co-Founder Dennis Anthony H. Uy.

DITO Telecommunity Chief Executive Officer Ernesto R. Alberto commented, “Under the spirit of forging alliances and healthy competition, this agreement is a testament to both our organizations’ shared commitment to provide the best user experience that our customers deserve – whether consumer or enterprise.”

Converge's Chief Operations Officer, Jesus Romero, stated that the arrangement benefits both networks by leveraging Converge's advanced pure fiber network and DITO Telecommunity's new network.

As of November 2023, Converge's total fiber assets reach 682,000 fiber kilometers and pass over 16.7 million residences, accounting for 62.3% of all households in the Philippines.

DITO Telecommunity has 7,000 cell facilities in 850 cities and municipalities, serving over 80% of the population. It presently has over 9.5 million activated subscribers who can access a pure 4G/5G network free of legacy infrastructure.

DITO Telecommunity Chief Technology Officer Major General Rodolfo D. Santiago (ret) added the following comment, “This agreement strengthens both our networks and eliminates the costly time, motion, financial, and manpower resources involved for such a network enhancement undertaking.”

The agreement highlights a pioneering effort to improve network reliability, enhance fiber services for Converge's over two million customers, and strengthen mobile services for DITO Telecommunity's over 9.5 million registered subscribers, all of which contribute to faster coverage expansion and support the country's digitalization initiatives.

The partnership seeks to improve the user experience for Converge and DITO Telecommunity clients by reducing downtime, increasing throughput, and improving network reliability.

To execute the MFPA, Converge and DITO Telecommunity must agree on separate Facilities Agreements that establish the location (routes), service restorations, and first-line maintenance of covered facilities for mutual use.