October 26, 2020 will be a day to remember for Philippine internet. On this day, Converge Information and Communications Technology Solutions Inc. (Converge ICT) conducted its initial public offering (IPO). It is one of the country’s fastest growing local fiber internet providers, and all eyes are on this development. Imagine, if Converge bet on the country at a time like this, then big things are coming. The question is – what does it mean for our internet connection?
The Converge IPO is historic for the Philippine Stock Exchange (PSE) because it’s the largest-ever. In an earlier statement, Converge divulged that the company and its shareholders raised approximately PHP 29.1 billion (USD 600 million) for this IPO.
IPO at a time that Filipinos are increasingly moving to online spaces
Every year, the number of internet users in the country keeps growing. This January 2020, a number of 73.00 million internet users were recorded for the Philippines. We also garnered a 67% internet penetration, at the start of the year alone.
Furthermore, the Covid-19 pandemic has driven Filipinos deeper into online spaces. It has become necessary, because of all the needed social distancing measures. Those January numbers should be higher now.
The reality is that for the past few months, we have all lived and functioned online. With this ongoing trend, fast and reliable internet connection has now become a need for majority of Filipinos. It’s actually the only way that some of us function in the time of online learning and work-from-home setups. The Converge IPO couldn’t have come at a better time.
The more competition, the better
For years, the telco industry has been an underserved entity, despite the fact that it is a widely needed service. Since its inception, Converge ICT has been continuously carrying out its goal for the company and the Philippines: provide fast, reliable, and affordable internet to everyone.
What this IPO means for Converge is that they gain access to more investments. They can then use that to further fund their growth. What this means for us as consumers is that we gain access to another company that can offer us the service and connectivity we need. Not only that – their competitors will be forced to improve in order to keep up. That additional pressure should translate into better service for everyone. Such is the nature of competition in business.
In this day and age, the internet has become an integral part of our lives. Business developments such as this means the future is bright not just for Converge, but for all Filipinos. As our need for better internet service increases, let’s see if Converge ICT is the company we’ve been waiting for.