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KT Joins Philippines' $1.8 Bln Broadband Project
08/17/2018 | By Netmanias (tech@netmanias.com)

 

 KT Wins $47 Million Contract to Build Optical Fiber Network in Luzon
 New Deal in Philippines to Provide Foothold into Southeast Asian Markets

 

SEOUL, South Korea (August 17, 2018) - KT Corp. (KRX: 030200; NYSE: KT), South Korea's largest telecommunications company, will participate in a nationwide project to drastically improve Internet connectivity in the Philippines, gaining a major foothold in the Southeast Asian country and neighboring region.

 

KT signed a 53 billion won (US$ 47 million) contract last week with the Philippines' Converge ICT Solutions Inc. to build an optical fiber network along some 1,570 kilometers (975 miles) of main roads in the northern region of Luzon. The company hopes the contract will lead to more business partnerships with the top Philippines Internet provider in the future.

 

The latest deal is part of Converge's $1.8 billion endeavor to expand its broadband coverage throughout the Philippines over the next five years. KT is increasing efforts to expand its business presence and partnerships overseas, notably in Asia, Europe and Africa, with the company's latest Internet solutions, including GiGA Wire, GiGA WiFi and GiGA LTE.

 

"The partnership with Converge ICT Solutions is a great opportunity to introduce our technological expertise in telecommunications network planning, construction and operation not only in the Philippines but also in neighboring countries," said Yun Kyoung-Lim, head of KT's future convergence and global businesses. "KT will continue its efforts in representing the Republic of Korea to the world as the global ICT leader."

 

KT is a global leader in next-generation wireless technology. The company is preparing for the commercial launch of the country's first nationwide 5G network early next year and successfully showcased trial 5G services with the world's first 5G-ready network. The company is also a pioneer in future technologies such as artificial intelligence (AI), autonomous driving, and virtual and augmented reality (VR and AR).

 

In recent years, KT has installed more than 5,500 kilometers (3400 miles) of optical fiber networks in Myanmar, Bangladesh and other countries. For the Philippines-based project, the company plans to cooperate with many Korean small- and mid-sized companies, which have proven their high quality through previous overseas projects. KT expects to have more business opportunities in the Philippines, including smart energy, corporate and public innovations, and disaster and safety management.

 

The Korean telecom leader also signed an agreement last month with Germany-based albis-elcon to provide its GiGA solutions and next-generation technologies to communications service providers in Europe and others parts of the world. KT is also now working on various projects to improve ICT infrastructure in Africa, including broadband networks in Rwanda, Gabon and Botswana and a public security network in Angola.

 

Luzon is the largest of more than 7,000 islands in the Philippines and is home to the Southeast Asian country's capital, Manila. More than half of the country's population, estimated at over 106 million, live on Luzon. Because the country consists of so many islands, the Philippines has experienced difficulties in improving its Internet speed and telecommunications service environment.

 

When the optical fiber cables project in Luzon is completed in June 2020, a great number of people in the Philippines are expected to benefit from high-speed home Internet connections. The government of President Rodrigo Duterte has established the Department of Information and Communications Technology, and the administration promoting e-government services and ICT development.

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