Converge ICT Solutions Inc. (CNVRG) has hit its two million fiber port rollout target for 2022. This cements CNVRG’s status as the largest fiber-to-the-home (FTTH) network in the Philippines. <\/p>\n\n\n\n
Converge disclosed that it has expanded its port deployment primarily in the National Capital Region (NCR), Rizal, North and Central Luzon and Mindanao. As of end- November NTC, CNVRG has extended its fiber footprint to more than 613,000 kilometers, consisting of subsea, aerial, and terrestrial fiber optic cable network.<\/p>\n\n\n\n
With the rollout, CNVRG is prepared to meet the growing demand for high-speed internet connectivity. As of 3rd quarter 2022, CNVRG has covered 14.3 million homes or 53% of households. It is on track to hit its accelerated 2022 target of 55%. <\/p>\n\n\n\n
However, with most schools back to face-to-face arrangements and workers now going back to offices, we believe that subscribers’ growth has already peaked and churn rates are rising. With growth flattening, the market is no longer valuing CNVRG as a high growth stock. Trading range should normalize with an immediate price resistance of P20.00.<\/p>\n\n\n\n