MANILA - Converge IT Solutions Inc on Wednesday said it has secured the approval of the Fiscal Incentives Review Board (FIRB) for tax incentives for its broadband rollout in remote areas until 2026.
The tax perks are given to projects that are targeting the establishment of high-speed broadband in underdeveloped and undeveloped areas nationwide, Converge said in a disclosure to the stock exchange.
Under the FIRB-approved incentives, Converge said it would receive 4 years of income tax holiday followed by 5 years of enhanced deductions or special corporate income tax under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.
The perks also include 11 years of duty-free importation of capital equipment, raw materials, spare parts or accessories, it added.
Converge said its nationwide fiber broadband roll-out project includes bringing fiber-to-the-home (FTTH) infrastructure to over 1,200 municipalities nationwide.
"We're glad that the government appreciates the cutting-edge technology we will be using to bring the broadband connection to underdeveloped areas. We've always believed that connectivity is a right, not a privilege of a few," Converge CEO Dennis Anthony Uy said.
Uy earlier said they were also "in talks" with Elon Musk's SpaceX for the use of Starlink satellite technology that is capable of bringing connectivity in areas unreached by traditional means.
Aside from expanding coverage, Converge said its broadband rollout project would generate jobs.
The pure fiber broadband provider aims to cover 55 percent of homes by 2025.