Telcos are presented with new revenue opportunities with the significant shift in the customers’ content consumption behavior. From traditional passive television, customers now turn to over-the-top (OTT) media services which bypass traditional distribution networks to deliver content straight to users’ devices.
Philippines’ leading fiber broadband and technology provider Converge ICT Solutions Inc. is not passing up on this opportunity as it leverages on its pure fiber network to offer innovative services beyond connectivity.
In the recently concluded APOS, the premier conference for the media, telecoms, and entertainment in Asia, held in Bali, Indonesia last September 24-26, Converge CEO and Co-Founder Dennis Anthony Uy shared how the company intends to leverage on OTTs to retain, and potentially attract, subscribers.
“This is a key part of our strategy. All the available content right now – news, entertainment, gaming, and sports – are all part of the individual home niche. We believe we can take advantage of these to maintain that stickiness with our customers,” said Uy, who was speaking for the Philippines in the session on “Future of Connectivity”.
Other one-on-one interviewees during the session were Telkomsel CMO Derrick Heng to represent Indonesia, AIS Chief Consumer Business Officer Prtthana Leelapanang for the discussion on Thailand, and Singtel Deputy CEO Anna Yip for Singapore.
In recent years, the service experienced massive growth spurts as Netflix, Disney+, and HBO Go, to name a few, became household names in entertainment. A study from the Trade Desk and Kantar showed that the Philippines’ OTT users stood at 36 million in 2021, accounting for over two billion hours spent on video streaming per month.
Uy noted that part of the business direction of Converge is to aggregate and host these services in a central hub where customers can conveniently select their preferred content on demand. To do this, he added that Converge is preparing its backend to cater to the data requirements of content providers.
The company is currently strengthening its data center network with two additional data centers in the pipeline. The critical infrastructures are expected to support the delivery of vast amounts of data, which is crucial for high-quality gaming and streaming.
By early next year, two international data links – the South East Asia-Hainan-Hong Kong Express Cable System (SEA-H2X) and Bifrost Cable System – are also set to be operational for Converge to address the increasing capacity demands in their respective regions.
“With our domestic and international fiber networks in place, we are well positioned to bring customers the best digital experience,” said Uy who also joined around 50 other business leaders in the region in the exclusive CEO Forum during the APOS.
Converge was named the “Fastest Internet Service Provider in the Philippines” again at the Ookla® Speedtest Award™ for the first half of 2024, repeating this sterling performance which was first recognized last year. Converge was also named the most consistent high-speed performance in most areas across its network for the second year in a row and achieved the best latency time for fixed networks, ensuring a seamless online experience for users.
Converge entered the pay-TV segment with Vision, through its affiliate Pacific Kabelnet, which is a value-added service that provides all-in-one entertainment through up to 88 multi-genre and multi-language channels, including access to OTT apps such as Spotify, Viu, Disney+, Curiosity Stream, Prime Video, and HBO Go.
Likewise, it also offers its existing subscribers free access to Blast TV, an ad-supported streaming platform, featuring a wide range of viewing options covering sports, movies, news, and factual entertainment.
According to Statista, revenue in the OTT video market in the Philippines is forecasted to reach $572.5 million in 2024. The segment’s revenue is also anticipated to demonstrate a compounded annual growth rate of 5.44 percent, “leading to a projected market volume of $746 million by 2029.”
At present, Converge has more than 700,000 kilometers of fiber footprint in the Philippines to reach over 16 million homes nationwide, making it the biggest fiber to the home network in the country.
