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Converged network disruption disconnects thousands
Ian Nicolas Cigaral (Philstar.com) – November 17, 2020 – 3:32 pm
MANILA, Philippines – Converge ICT Solutions customers abruptly lost Internet service on Tuesday after the company reported a network-wide outage affecting workers who relied heavily on connecting online while staying indoors. .
Subscribers lost Internet access at 1:10 pm due to “problems in our data center,” Converge said in an advisory. Work is underway to restore connectivity in “the shortest time possible,” the company added, without specifying a time frame. As of September, Converge has 900,531 clients in Luzon, where the company currently operates.
As Converge discouraged affected customers from invading its hotlines – it said that a service ticket is not required – complaints flooded the social media platform Twitter instead, prompting “Converge” to become a trend in the Philippines. as of this post.
The new problem compounded growing consternation over Dennis H. Uy’s fluctuating Internet service in Luzon, even days after typhoons cut telecom services in most areas. A few hours before the latest outage, Converge said connection problems were detected in various parts of its service area, including Makati and the provinces of Bulacan and Cavite.
“Our technical team is already working to solve the problem in the shortest time possible and restore its connection,” said the firm.
– Converge ICT (@Converge_CSU) November 17, 2020
Poor internet service in Luzon adds to the growing challenge for Converge, which wants to show that investors made the right bet in its expansion plans to Visayas and Mindanao. Last month, the company raised P29.1 billion in the second-largest inaugural share sale registered on the local exchange.
However, since then, Converge shares have been trending below their offer price of P16.80 each. That remained the case on Tuesday, when the company’s shares closed at P15.66 apiece, though 2.76% more than the day before.
Analysts said the price for Converge’s IPO was too expensive despite the clear benefits to the broader telecommunications sector from a drastic switch to work-from-home deals. In the third quarter, when Converge released its first financial report, revenue grew 71% year-over-year by adding 208,880 new residential users, 90% of whom were first-time fixed broadband users.
That sent revenue in the first 9 months up 67% year-over-year.
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