KT revealed it has signed a 53 billion won ($47 million) contract with Converge ICT Solutions to build an optical fiber network in Luzon.
Under the contract, KT will build a fiber network along some 1,570 kilometers (975 miles) of main roads in the northern region of Luzon.
The deal is part of Converge’s $1.8 billion endeavor to expand its broadband coverage throughout the Philippines over the next five years.
Meanwhile, the deal is part of KT’s increasing efforts to expand its business presence and partnerships overseas, notably in Asia, Europe and Africa.
“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.
For the Philippines-based project, the company plans to cooperate with many Korean small- and mid-sized companies it has worked with on 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.
Because the country consists of so many islands, the Philippines has experienced difficulties in improving its Internet speed and telecommunications service environment. The optical fiber cable project in Luzon is expected to be completed in June 2020.