BusinessMirror July 12, 2020

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A broader look at today’s business n

Sunday, July 12, 2020 Vol. 15 No. 276

P25.00 nationwide | 2 sections 12 pages | 7 DAYS A WEEK

By Ashley Manabat

A

NGELES CITY—While the coronavirus outbreak has adversely affected most industries around the globe, the demand for fixed broadband service has tremendously risen, as the workfrom-home (WFH) scheme and social distancing became an integral part and practice in the age of the “new normal.”

In what could be the largest public listing in the Philippines this year, Converge Information and Communications Technology Solutions Inc. (Converge ICT) is eyeing to raise as much as P35.9 billion from its planned initial public offering (IPO) this October. It was reported that the Securities and Exchange Commission (SEC) has acknowledged that it has received the firm’s registration papers last week and that the planned IPO would facilitate the listing of fiber-optic internet and other consumer-centric digital services providers on the main board of the Philippine Stock Exchange (PSE). The potential net proceeds of 90 percent from the sale of its primary shares would be used to fund the capital expenditure requirements to accelerate its nationwide fiber-optic network rollout, while 10 percent would be used for general corporate purposes, including working capital requirements. It was also reported that the offer period is set from October 13 to 19, while the expected listing date is on October 26. Converge ICT tapped Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore to be the joint global coordinators and joint bookrunners of the transaction. BPI Capital Corp. will be the sole local coordinator, joint local underwriter and joint bookrunners, while BDO Capital & Investment Corp. will be the joint local underwriter and joint bookrunner.

From Betamax biz to ICT

FOUNDED in 2015 by business-

man Dennis Anthony H. Uy (not the Dennis Uy of Udenna fame), its current chief executive officer, Converge ICT is described as the largest high-speed fixed broadband operator in the Philippines with a 54-percent market share of highspeed residential fixed broadband subscription as of March 2020. A self-made man who started out as a trader of Betamax tapes back in the early ’80s, Uy is now in the cutting edge of the ICT that would soon connect the Philippines to the world. With this in place, the cost of internet in the Philippines would be greatly reduced and its speed will become faster, making Uy’s consortium a formidable third (or even fourth) player in the ever-improving multibillion- peso ICT industry. Converge ICT Solutions Group of Companies, which leads a consortium of foreign companies, is now undertaking the construction of thousands of kilometers of subsea fiber-optic cables from Hong Kong to the Philippines and on to Guam for an international gateway facility (IGF). Uy said in time, his consortium would have completed the $120-million infrastructure project that would connect the Philippines to the rest of the world. The contractor is NEC Corp., which will lay out the subsea fiberoptic cables between Hong Kong and the Philippines for some 1,100 kilometers and between the Philippines and Guam for another 2,560 kilometers, said Uy. The capacity of the IGF backbone will be seven terabytes per second, he added.

The man behind what could be the biggest public listing of a fiberoptic firm has humble beginnings in Pampanga Uy started out when he was only in high school. During his first year at the Chevalier School here, he would often go to Greenhills in San Juan, Metro Manila, to buy Betamax and VHS tapes to be rented out in their store, Jack’s Video, operated by his eldest brother Jack. During his senior year in high school, Uy was already selling the first Apple computers to big businessmen in this city and nearby San Fernando. “I still remember during my high-school days at 3 p.m. after our classes, I still have to go to Greenhills via Pantranco bus to get the computers,” he recalled. “Only the rich people could afford to buy computers at that time because they cost around P60,000 each,” he added. He ventured into all sorts of brands like Commodore and Atari and learned how to repair them. “I learned how to repair the machines because I follow the transition in technology,” he said. At that point, he said, he realized the speed in which technology was evolving and this inspired him to keep up and learn more. “Imagine nag-umpisa kami [we started out with] Betamax, VHS, CD, LD and now flash disk, flash drives and the cloud,” he said. Uy started attending international trade shows and technology conferences abroad to keep up with the pace. Soon it became apparent that he has nobody to sell to any more in Pampanga. “So, when I realized that a lot of people are now into selling computers, I went into a higher level which is networking products, installing servers for niche markets using Sun Microsystems servers for banking, government usage and multinational companies. I tried to avoid competition,” he said. “I was the first Philippine distributor of Sun Microsystems,” he said.

Cable television

THE pioneering spirit in him again inspired him to venture into cable television just a year after the eruption of Mount Pinatubo in 1991. DENNIS ANTHONY H. UY, Converge ICT Solutions Inc. founder and CEO

Continued on A2

The US-China rivalry is broadening from trade to everything

T

By Enda Curran |

Deepening divisions

Bloomberg News

HE US-China rivalry is shifting into new and unpredictable areas, engulfing everything from a popular video app to Hong Kong’s status as a global financial hub. The latest tensions are overshadowing a trade agreement in January that was meant to draw a line under the trade war and be a boon for business. Instead, differences between both powers are deepening right at a time when the world economy is facing its worst crisis since the Great Depression. This week alone, President Donald Trump said he is considering banning ByteDance Ltd.’s short video app TikTok as retaliation against China over its handling of the coronavirus. Some of his top advisers want the US to undermine the Hong Kong dollar’s peg to the greenback to pun-

ish China for recent moves to chip away at the former British colony’s political freedoms. There are even concerns over the visa status of hundreds of thousands of Chinese students who enroll at US colleges and universities each year. China in turn has promised its own response, warning the US and others to stop interfering in Hong Kong and other issues. “The Ice Age in relations is here to stay,” said Pauline Loong, managing director at research company Asia Analytica in Hong Kong and a veteran China watcher. “It will get much colder before there will be any thaw.”

PESO EXCHANGE RATES n US 49.4440

RIOT police detain a demonstrator in Hong Kong, January 2020. BLOOMBERG

THE economic backdrop could hardly be more stark, with the IMF estimating that by the end of this year 170 countries—almost 90 percent of the world—will have lower per capita income. That’s a reversal from January, when it predicted 160 countries would end the year with bigger economies and positive per capita income growth. The deepening divisions are forcing difficult decisions for global business. Facebook Inc., Google and Twitter Inc.—all of which are blocked in the mainland—are at risk of the same fate in Hong Kong. Hours after Hong Kong announced sweeping new powers to police the internet on Monday night, those companies plus the likes of Microsoft Corp. and Zoom Video Communications Inc. all suspended requests for data from the Hong Kong government. It’s not yet clear how the authorities will respond to that lack of compliance with local rules. ByteDance’s TikTok, which has Chinese owners, announced it would pull its viral video app from Continued on A2

n JAPAN 0.4612 n UK 62.3439 n HK 6.3798 n CHINA 7.0711 n SINGAPORE 35.5150 n AUSTRALIA 34.4081 n EU 55.7976 n SAUDI ARABIA 13.1833

Source: BSP (July 10, 2020)


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