Converge sees revenue boost from Musk’s Starlink
Converge ICT Solutions Inc. is ready to resell this year $4-million worth of Starlink kits to enterprise customers in the country, which is seen to translate to an up to 10-percent growth in segment revenues.
Dennis Uy, CEO and co-founder of Converge, announced on Tuesday in Makati City their entry into the satellite internet space via its partnership with tech tycoon Elon Musk’s Starlink.
Uy said they currently have about $3 million to $4 million worth of inventory comprising “thousands” of Starlink kits. The company is targeting to move all these products in the coming months.
With this new revenue stream, the Converge official estimated a 5 percent to 10 percent growth in the top-line figures of its enterprise business.
Uy said there is a “big” demand for satellite connectivity in the remote areas where traditional telecommunications infrastructure—like cell sites—is lacking. Satellite technology is being tapped as a connectivity solution in these areas because it does not rely on on-ground facilities.
In addition, Uy said satellite internet also serves as a redundancy for ground-based internet access, complementing the existing fiber services.
According to the Starlink website, the subscription for enterprise customers starts at P1,950 per month. A satellite dish costs about P40,000.
The Starlink service provides internet speeds of up to 200 Mbps (megabits per second), which can support high-definition video conferencing, real-time financial transactions, cloud computing and remote-controlled industrial operations.
As an authorized Starlink reseller, Converge offers installation, network management, monitoring and maintenance services.
“[This] is about transforming the way businesses operate. We’re bringing solutions that empower industries to scale and innovate, even in the most remote areas,” Uy said.
Starlink secured its license in the Philippines to operate as an internet service provider in 2022.
Apart from Starlink, the country has been seeing several entries of foreign satellite players, including California-based Astranis, Washington DC-based satellite and terrestrial network company Intelsat and Luxembourg-based connectivity solutions firm SES.
According to technology intelligence firm ABI Research, the Philippines is projected to be the biggest satellite broadband market in Southeast Asia with 909,000 subscriptions by 2028.
