Keppel, Converge enter agreements for Bifrost Cable System

Keppel Telecommunications & Transportation’s (Keppel T&T) and Philippine internet service provider Converge ICT Solutions Inc., have entered into definitive agreements for the Bifrost Cable System project.

The Bifrost Cable System will directly connect Singapore to the west coast of North America. It will boost the connectivity of the region’s governments and businesses, including cloud operators, telecommunications operators, network providers, over-the-top (OTT) providers, data centers, governments, enterprises, and consumers by offering them competitive pricing and capacity resilience.

Signed by Keppel T&T CEO Thomas Pang and Converge CEO Dennis Anthony Uy, the agreements provide for the grant of an Indefeasible Right of Use (IRU) to Converge for one fiber pair on the main trunk of Bifrost Cable System. In addition, KMH and Converge will jointly develop a branch on the Bifrost Cable System in Davao, Philippines. Converge is also being granted an IRU on the entire Davao branch.

According to Converge, they will also be appointed as the landing party for the Davao branch segment and will invest over USD 100PHP 5,869INR 8,475EUR 95CNY 728 million (around PHP 5USD 0.09INR 7EUR 0.08CNY 0.62 billion) for the whole project.

“We are pleased to strengthen our relationship with Converge through our collaboration on this significant transnational infrastructure project. The Bifrost Cable System will enable greater ASEAN inter-connectivity, as well as greater connectivity between Southeast Asia and the west coast of North America, bringing significant benefits to the region’s governments, businesses and consumers,” said Thomas Pang, CEO of Keppel T&T

The project is expected to be completed in 2024 and span over 15,000 kilometers. The Bifrost Cable System is the world’s first subsea cable system that directly connects Singapore to the west coast of North America via Indonesia through the Java Sea and the Celebes Sea. It will connect Singapore, Indonesia, the Philippines, Guam, and the west coast of North America.

“The additional Davao branch for the Bifrost Cable System will significantly increase internet speeds and network diversity for businesses and consumers in the Philippines for a better digital experience. Our investment into this cable system also gives us two direct international links, one going to Singapore and the other one going to North America with a design capacity of up to 15Tbps in each direction,” Mr. Dennis Anthony Uy, CEO of Converge, stated.

Construction of the Davao branch is subject to the relevant regulatory permits and licenses being obtained. As the transaction proceeds, Keppel T&T will make the necessary announcements when there are material developments.