Business

It’s on! Elon Musk’s SpaceX-Starlink surveying Dennis Anthony Uy’s Converge sites

Billionaire Elon Musk’s SpaceX is currently conducting survey tests on ground stations of Converge ICT Solutions owned by bilyonaryo Dennis Anthony Uy.

The tests are part of Musk’s plan for SpaceX to provide Starlink broadband services in the Philippines by connecting its low-orbit satellite signals with Converge’s fast-growing fiber internet network.

READ: Super fiber friends! SpaceX’s Elon Musk ties up with Converge’s Dennis Anthony Uy broadband deal

In a report by Regina Capital, Uy was asked whether or not his deal with Musk (first reported by Bilyonaryo.com.ph) was progressing, the Pampanga techpreneur replied: “It’s on.”

Uy thinks that the Musk deal is just icing on the cake as Converge is locked in on expanding its household coverage in the country, with or without Starlink, to 55 percent of households by 2025.

READ: Dennis Uy-Elon Musk game plan: SpaceX’s $99/mo satellite internet to serve 20% of Converge’s growing market

Regina Capital said this was “achievable” even with the entry of a new player, DITO Telecommunity, because its subscriber base has been expanding at a consolidated annual growth rate of 92 percent in the last for years.

READ: Elon Musk FTW: NASA chooses SpaceX to take humans back to Moon

“CNVRG said it is on track to completing its national backbone in 1H21. The firm aims to commercially launch in VisMin by 2H21. Expansion in Visayas and Mindanao includes 1,800km of submarine sea cables connecting over 20 landing stations across the country,” said Regina Capital.

Uy is spending P20 billion this year which Regina Capital said could be easily funded by Converge’s strong cashflow (P1.6 billion in cash as of end-2020) and P30 billion standby loans.

READ: Dennis Anthony Uy in demand: After Musk’s SpaceX, Canada’s Telesat seeking partnership with Converge

“CNVRG has the highest margins out of the three major telcos because of its pure broadband product offerings,” said Regina Capital.

READ: Premature: Converge neither confirms nor denies Bilyonaryo scoop on 60-40 deal with Elon Musk’s SpaceX

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