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Stars
Residential FTTH unlimited plans
Fast uptake, strong brand pull and dense coverage put Residential FTTH unlimited plans at the front of the pack: gigabit-capable service (up to 1 Gbps) meets growing home demand as work, school and streaming stay online. The product soaks up capex but shows low churn and steady ARPU, turning continued network investment into an expanding profit engine as penetration and usage compound.
Network expansion in high-growth cities
Rolling fiber deeper into fast-growing urban corridors has captured share rapidly; by mid-2024 Converge reported homes passed exceeding 2.5 million in target cities, driving take-up rates above 30% within first year on many streets. First-mover streets lock long-lived ARPU-rich customers and force competitors to chase, so short-term cash-out equals cash-in while lifetime value remains high. Double down where steep take-up curves deliver payback in 18–36 months.
SME dedicated internet (DIA) bundles
SME demand for fiber-backed DIA rose ~20% in 2024 as small and midsize firms shift to fiber for stability. Converge’s price-performance edge is converting logos and referrals, supporting reported brisk DIA growth and ~30% YoY uptake in business packages. Support needs are real and upsell paths (managed security, bandwidth tiers) are clear. Nurture with SLAs, sub-24‑hour installs, and simple upgrade paths.
Wholesale capacity on national backbone
Converge’s extensive national fiber footprint—over 200,000 km—gives it leverage as a wholesale backbone provider, meeting peers and regional carriers’ need for dependable routes across the archipelago; data traffic rose ~30% YoY in 2024, keeping utilization above 70% and making wholesale capacity a Stars asset in the BCG matrix.
- Leverage: nationwide fiber >200,000 km
- Demand: ~30% YoY traffic growth in 2024
- Utilization: >70%
- Priority: invest in redundancy and smart routing
Fiber to MDUs and property partnerships
Converge’s fiber-to-MDU and property partnerships convert condo and subdivision tie-ups into concentrated sign-ups rapidly, enabling building-wide installs that cut per-home deployment costs and create temporary exclusivity windows for upsell and retention.
Occupancy growth in MDUs drives steady add-on ARPU from broadband upgrades and OTT bundling; prioritizing additional developer MOUs before rivals secures longer-term market share and recurring revenue.
- Concentrated sign-ups: faster payback on installs
- Lower per-home cost: building-wide economies
- Occupancy-led adds: sustainable ARPU growth
- Developer MOUs: strategic exclusivity and scale
Gigabit FTTH + wholesale: >2.5M homes, ~30% traffic growth, 18–36m payback
Converge’s residential FTTH and wholesale fiber are Stars: gigabit-ready plans with low churn and rising ARPU, supported by >2.5M homes passed and >200,000 km network. Traffic grew ~30% YoY in 2024 with utilization >70%, DIA uptake ~30% YoY and residential take-up often >30%, yielding payback in 18–36 months where density is high.
| Metric | 2024 |
|---|---|
| Homes passed | >2.5M |
| Fiber network | >200,000 km |
| Traffic growth | ~30% YoY |
| Utilization | >70% |
| Residential take-up | >30% |
| DIA growth | ~30% YoY |
| Payback | 18–36 months |
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Cash Cows
Urban-core residential base
Urban-core residential clusters generate steady cash: institutional multifamily in major US metros reported occupancy above 95% through 2024 and delivered cap rates near 4.5%, so acquisition costs are largely sunk and maintenance is predictable. Marketing budgets are minimal as retention programs lift renewals, keeping turnover costs low. Milk these assets with reliable distributions, modest speed bumps, and simple lease renewals.
Enterprise leased lines for large corporates
Enterprise leased lines for large corporates sit on 12–36 month contracts with churn typically under 5%, and premium SLAs support enterprise EBITDA margins near 40%, keeping margins fat. Growth is modest but stable, aligned with a global leased-line market CAGR of roughly 5–6% through the mid-2020s. Cross-selling redundancy and security can lift ARPU by 15–25%, so keep service quality high and pricing disciplined.
Add-on services: static IPs, speed upgrades
Low-touch add-ons like static IPs and speed upgrades raise ARPU with minimal ops impact, commonly delivering single-digit to low-double-digit ARPU uplift; Converge’s 2024 strategy prioritized such bundles to capture predictable revenue without expanding support headcount. Customers perceive clear, immediate value so support volumes barely move, while automated provisioning and smart bundling keep take rates elevated and churn stable. Growth is slow but dependable, fitting the Cash Cows profile in Converge’s BCG matrix.
Wholesale IP transit and peering
Wholesale IP transit and peering sits squarely as a Cash Cow for Converge: stable demand from ISPs and content players that prize predictable routing, utilization is actively managed with the bulk of capex already sunk (2019–2023 buildouts), margins remain strong with minimal promotional pressure, and capacity headroom plus SLA credibility preserve renewal rates; 2024 wholesale throughput expanded ~20% YoY while unit costs stayed flat.
- Stable demand: ISPs/content customers
- Capex: largely in ground (2019–2023)
- Utilization: well-managed, capacity headroom
- Margins: solid, minimal promos
- 2024: ~20% YoY throughput growth
Installation/activation revenues
In 2024 installation/activation fees for Converge remain a cash cow: not glamorous but reliable cash on every new hook-up. Streamlined costs from scale and repeatable processes keep unit costs low. Volume tracks the core subscriber base, not hypergrowth, so keep operations tight to preserve contribution.
- Reliable one-time cash (2024)
- Scale lowers per-install cost
- Volume tied to core adds
- Tight ops preserve contribution
Urban-core multifamily at 95% occ; leased lines 40% EBITDA; ARPU +15-25%
Urban-core multifamily: occupancy ~95% and cap rates ~4.5% (2024); enterprise leased-lines: churn <5%, EBITDA ~40%, market CAGR 5–6%; add-ons: ARPU uplift 15–25% with low ops; wholesale transit: throughput +20% YoY (2024) and flat unit costs; installation fees: steady one-time cash with lower unit cost from scale.
| Asset | Metric | 2024 |
|---|---|---|
| Residential | Occupancy/Cap | 95% / 4.5% |
| Leased lines | Churn/EBITDA/CAGR | <5% / 40% / 5–6% |
| Add-ons | ARPU uplift | 15–25% |
| Wholesale | Throughput/unit cost | +20% YoY / flat |
| Install fees | One-time cash | Stable; lower unit cost |
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Dogs
Legacy voice/landline add-ons
Customers aren’t asking for home voice anymore; fixed-voice subscribers in the Philippines fell sharply through 2023–2024 as mobile and fiber adoption surged, shrinking demand for legacy landlines. Bundles add support complexity with little pull-through, increasing CSM and OSS/BSS incidents while driving marginal take rates. It ties up billing and care for tiny gains—voice add-ons now represent under 1%–2% of Converge ARPU in 2024. Sunset gracefully and reallocate resources to fiber and cloud services.
Public Wi‑Fi hotspot monetization
Ad‑supported or paid public Wi‑Fi hotspots struggle to compete with unlimited home mobile/fixed bundles; 2024 operator surveys show they contribute under 10% of ARPU, usage is highly spiky with peak loading and maintenance costs are fussy, pushing OPEX up. Cash returns are thin versus core access services, so de‑emphasize deployments and retain only where mandated or strategically required.
Non-core managed hardware resale
Non-core managed hardware resale is a Dogs quadrant for Converge: moving CPE and on-prem gear is a crowded, price-driven margin play with little differentiation or loyalty and, per Gartner 2024, cloud-first adoption continued to siphon demand from on-prem hardware. Inventory risk and support drag erode margins and tie up working capital. Scale back to essentials only.
International enterprise segments without local edge
International enterprise segments without a local edge burn cycles: competing offshore yields low win rates and long procurement timelines, squeezing margins and trapping cash in pursuits that rarely close; 2024 market reporting commonly cites procurement windows of 6–12 months and win rates under 25% for pure offshore plays. Prioritize partnerships and local alliances over direct hunts to improve access, speed and margin retention.
- Issue: low offshore win rates (often <25% in 2024)
- Impact: procurement 6–12 months, margin compression
- Cash: capital tied in non-closing pursuits
- Action: pursue partnerships/local footprint
One-off bespoke ICT projects
One-off bespoke ICT projects are Dogs in the Converge BCG Matrix: they derail product focus and soak senior engineering time, with 2024 industry reviews showing bespoke work can consume up to 40% of senior dev capacity and cut project margins ~20%. Scope creep commonly kills profitability, reusability often falls below 10% and brand lift is negligible—decline politely or productize before saying yes.
- Risk: derails roadmap
- Cost: up to 40% senior time
- Margin hit: ≈20%
- Reusability: <10%
- Action: decline or productize
Sunset low‑ARPU voice & Wi‑Fi; productize bespoke ICT; redeploy to fiber/cloud
Dogs: legacy fixed‑voice, public Wi‑Fi, non‑core hardware, offshore enterprise and bespoke ICT drain margins and cash; voice add‑ons <1–2% ARPU, Wi‑Fi <10% ARPU, bespoke consumes ~40% senior time and cuts margins ~20%, offshore win rates <25% with 6–12 month procurements. Sunsets, scale‑back, partner or productize to redeploy capital to fiber/cloud.
| Item | 2024 Metric | Impact | Action |
|---|---|---|---|
| Fixed voice | <1–2% ARPU | Low revenue | Sunset |
| Public Wi‑Fi | <10% ARPU | High OPEX | De‑emphasize |
| Bespoke ICT | 40% senior time | -20% margins | Productize/decline |
| Offshore enterprise | <25% win rate | 6–12m procure | Partnerships |
Question Marks
Data center and edge interconnect services
Hyperscalers and CDNs demand local on-ramps as global IP traffic grew roughly 25% year-over-year into 2024 (Cisco VNI trend), driving ballooning metro traffic. Converge can target fiber meet-me-points and interconnection hubs, but market share is early and competitive. Capex is chunky; combined hyperscaler capex exceeded $100 billion in 2023–24 (company filings), so payback hinges on securing anchor tenants; pilot scalable designs in key metros to validate economics.
Cloud connectivity and SD‑WAN
Enterprises moving apps to cloud need smart routing as Gartner forecasts 85% of enterprises will be cloud‑centric by 2025; SD‑WAN addresses that demand. The SD‑WAN market, roughly $7–8B in 2023–24 with >20% CAGR, is hot but competitors are savvy. Packaged with fiber and a clean one‑page offer, bundled ARPU can rise quickly. Invest in channel partnerships and a simple partner‑ready product sheet.
Cybersecurity add-ons for SMEs
Position Cybersecurity add-ons for SMEs in Converge's BCG Question Marks: bundle baseline protection with internet—managed DNS and basic firewall pilot first—target attach rates of 10–20% seen in 2024 telco security pilots, building brand permission where trust exists but is still forming.
Rural last‑mile solutions beyond fiber
Reaching far-flung towns reads as high-growth but is operationally hard; Converge’s current rural share is low while demand surveys in 2024 show stepped-up willingness to pay for reliable broadband if last-mile gaps are solved. Fixed wireless access (FWA) and fiber-hybrid builds can bridge many gaps with CAPEX per home-passed often cited in industry ranges; pilot deployments should focus on incremental ARPU and churn. Trial carefully and monitor unit economics—payback, EBITDA per customer, and marginal CAC—as primary go/no-go triggers.
- high-growth opportunity
- low current share, high latent demand
- FWA/hybrid as bridge
- pilot then scale
- monitor ARPU, payback, CAC
Content caching and CDN partnerships
Local caches reduce latency to ~20–30 ms and offload transit, improving QoE and lowering backbone costs; industry CDN spend reached an estimated USD 25B in 2024 (≈+10% YoY) with video ~66% of downstream traffic, so Converge sits in Question Marks as share is early but upside ties directly to streaming and gaming surges. Scale cache placements where traffic economics justify and keep costs variable via peering and usage-based CDN deals.
- Local latency: ~20–30 ms
- CDN market 2024: ~USD 25B (+10% YoY)
- Video share: ~66% downstream
- Strategy: scale with traffic, favor variable-cost partnerships
$100B hyperscaler capex +25% IP growth: SD‑WAN and CDN pilots ripe for variable‑cost deals
Question Marks: metro interconnects, SD‑WAN, CDN caches and SME security show high demand but low Converge share; hyperscaler capex >$100B (2023–24) and global IP traffic ~+25% YoY (to 2024) drive opportunity yet require anchor tenants and chunky CAPEX. SD‑WAN market ~$7–8B (2023–24, >20% CAGR) and CDN ~$25B (2024, video ~66%) justify pilots and variable‑cost deals.
| Metric | 2023–24 |
|---|---|
| Hyperscaler capex | >$100B |
| Global IP traffic YoY | ~+25% |
| SD‑WAN market | $7–8B |
| CDN market | $25B |