In a disclosure to the stock exchange in early June 2021, Converge said that it has acquired shares of Digital Telecommunications Phils.(Digitel) in Digitel Crossing and Asia Netcom Philippines for a total of US$7.5m (P358.47m) to gain “strategic imperative to expand its capabilities in telecommunications”. As a result, Converge gains majority ownership and control of the Cavite Cable Landing Station in Luzon, Philippines.
Established in 1987, Digitel is a now subsidiary of PLDT, acquired by PLDT in 2011.
In 2001, Digital Telecommunications Phils, Inc. (Digitel), Asia Global Crossing (AGC) and Broadband Infrastructure Group (BI Group) formed a 40:40:20 joint venture, Digitel Crossing Inc. Digitel Crossing acts as the landing party in the Philippines to land the East Asia Crossing (EAC) submarine cable at the Cavite Cable Landing Station, and operates a terrestrial fiber optic backhaul network in the Philippines leveraging existing Digitel network assets. The EAC system is now part of the EAC-C2C network, aquired by Telstra in 2015.
In addition to Digitel Crossing, Digitel owns other subsidiaries, including Digitel Mobile Philippines, Inc. (100%), Digitel Information Technology Services, Inc. (100%) and Asia Netcom Philippine Corporation (60%). Digitel Mobile Philippines, Inc. (DMPI), commercially known as Sun Cellular, is one of the Philippines' leading mobile telecommunications companies. Asia Netcom Philippine Corporation owns 20% shares in Digitel Crossing.
Prior to the acquisition by Converge, Digitel Crossing's shareholders include Digitel (40%), Asia Netcom Philippine Corporation(20%), and Pacnet Network (Philippines) Inc (40%). Pacnet Network is a subsidiary of Telstra, while Asia Netcom Philippine Corporation is a joint venture of Digitel and Pacnet Network. Digitel Crossing maintains and operates both the Cavite Cable Landing Station for EAC and the Nasugbu Cable Landing Station for C2C. Asia Netcom Philippine Corporation owns the facilities and assets of the Cavite Cable Landing Station.
Converge acquired from Digitel 10,000,000 (or 40%) common shares of Digitel Crossing Inc for US$4.84 million. Converge also purchased from Digitel 300,000 (or 60%) common shares of Asia Netcom Philippines Corp for 2.66 million. Consequently, Converge controls mojority (52%) ownership in Digitel Crossing. Telstra is an indirect shareholder of Digitel Crossing, holds 48% stakes in Digitel Crossing through Pacnet Network and Asia Netcom Philippines Corp.
Converge is increasing its presence in the international cables amid an aggressive expansion of its domestic network and coverage. Converge aims to cover 55% of Filipino households by 2025.
Converge also builds and operates a Domestic Submarine Cable Network (CDSCN), acquires one fiber pair on the Bifrost Cable System connecting to Singapore and the United States, and invests in a cable landing station in Davao for the landing of Bifrost cable.