Enhancing the Network Connecting the Philippines to the World
One of the major obstacles to the development of telecommunications services in the Philippines was the limited capacity of communication lines connecting the country to the rest of the world.
The routes to international communication lines that carry Internet traffic overseas were monopolized by major domestic telecommunications carriers in the Philippines, preventing competition and forcing service providers to bear high costs.
To break through this situation, IPS is vigorously promoting its Global Telecommunications Business, including the acquisition and operation of international communication lines.
CANDLE (Scheduled for 2028)
Candle Submarine Cable System：
Toward the Backbone Infrastructure of the AI Era
The new international submarine cable “Candle,” which our group is jointly constructing, connects Japan, the Philippines, and Singapore, and is expected to serve as next-generation infrastructure to meet the high-capacity communication demands of the Asia-Pacific region. Amid rapidly growing demand for generative AI, cloud services, and data centers, the importance of submarine cables capable of reliably providing long-distance, high-capacity communications is increasing significantly.
Candle will feature 24 fiber pairs and, when combined with the existing international cable C2C, will establish a highly redundant network connecting multiple regions, centered on Japan and the Philippines. This will significantly improve the quality and volume of data flow within Asia and serve as a foundation for long-term growth for our Global Telecommunications Business.
Candle Submarine Cable System
Baler area
BALER CLS (Scheduled for late 2026)
Baler Cable Landing Station (CLS): A Strategic Hub on the Eastern Coast of the Philippines, Pioneered Through Open Access Policy
The “Baler CLS” on the eastern coast of Luzon Island, which serves as Candle’s entry point into the Philippines, is a next-generation international telecommunications hub currently being developed by our group. Facing the Pacific Ocean, Baler boasts a highly advantageous geopolitical location and offers significant strengths in terms of stability, redundancy, and scalability. The Baler CLS is designed to accommodate up to four international submarine cables. By consolidating multiple routes, including Candle’s, we will distribute international telecommunications traffic and build a resilient network capable of rapid rerouting in the event of a failure.
Furthermore, our group will introduce an open-access policy in Baler. We will establish an environment where diverse cable operators and carriers can connect fairly and efficiently, without being limited to specific telecommunications carriers.
DIGITAL ECONOMY
A New Growth Foundation Supporting the Philippines’ Digital Economy
The development of the Candle and Baler CLS is significant not only for our group’s growth but also for the Philippines’ digital economy. With the expansion of its young population, demand for high-speed telecommunications infrastructure is surging in the Philippines. Furthermore, digital investment by foreign companies is gaining momentum, and stable international communication routes directly contribute to enhancing competitiveness in the BPO, cloud, and AI sectors.
Going forward, the formation of a new digital ecosystem—centered on AI data centers and other technologies—is anticipated, with this communication infrastructure serving as the backbone. Building on the foundations of Candle and Baler, our group will continue to advance the construction of a network that will propel the Philippines into a digital hub for Asia.
Philippine Domestic Submarine Cable Network
PDSCN
Serving as the Backbone of Digital Infrastructure
Centered on the Philippine Domestic Submarine Cable Network (PDSCN), we have established a backbone network that rivals those of major local telecommunications carriers. With a focus on security, we have designed our network to meet the requirements of the National Broadband Plan—a government initiative aimed at improving broadband infrastructure nationwide—and we aim to provide services to government and local authorities.
As a provider serving as the core of the digital infrastructure, we intend to address the major social challenges facing the Philippines and contribute to the socio-economic development of the country.
C2C
Secures links connecting the Philippines with Hong Kong and Singapore
Becomes the Third-Largest International Data Carrier in the Philippines
Since 2012, IPS has been procuring international communication line capacity from other companies and providing it to CATV operators in the Philippines that offer internet services to residential customers. However, in recent years, traffic volumes have been increasing steadily due to the spread of video streaming services and other factors. Based on the decision that we should own our own lines to address this, in May 2020, we acquired a portion of the usage rights for an international submarine cable (C2C Cable) connecting the Philippines with Hong Kong and Singapore from Australia’s largest telecommunications operator. We began providing this service in October of the same year. As a result, our group has become the third-largest international data carrier in the Philippines, following the two major telecommunications operators.
International Connectivity Map
C2C Circuit Utilization Model
CONNECTIVITY STRATEGY
Meeting diverse communication needs through a C2C Cable and expanding the business model as a Carrier’s Carrier
By leveraging the newly acquired C2C Cable, our group has established a system capable of addressing a wide range of communication needs within the Philippines. We will also switch the international communication lines required for the corporate Internet access services provided by our local subsidiary, InfiniVAN, in the National Capital Region, to the C2C Cable, aiming to further enhance our competitiveness. Furthermore, in addition to providing the C2C Cable to existing CATV operators, we will also offer them to telecommunications carriers in the Philippines to establish a “Carriers’ Carrier” business model (an operator that leases lines to other telecommunications carriers), thereby aiming to quickly recoup the investment funds required to acquire the lines.
CAPACITY EXPANSION
Acquisition of physical lines enables the creation of communication capacity
Delivering high-quality internet to the Philippines
The Philippines’ internet environment continues to face challenges, including inadequate infrastructure and slow connection speeds, even compared to neighboring Southeast Asian countries. Strengthening communications infrastructure is a national priority, particularly to support the BPO (Business Process Outsourcing) industry, a key driver of foreign exchange earnings. Through the acquisition of the C2C physical circuit, our group is now able to expand and enhance network capacity by adding and upgrading transmission equipment. Through this initiative, we will deliver high-speed, high-capacity, and high-quality internet services across the Philippines, contributing to the country’s development while driving our own growth.
Speedtest Global Index 202106
Advancing Telecommunications Infrastructure in the Philippines with Japanese Quality
Although the Philippines is a country with significant growth potential within ASEAN, its telecommunications infrastructure has been a bottleneck for social development. Due to the unique structure of the industry, the development of internet infrastructure has lagged, resulting in challenges such as slow speeds and high prices. To address these social issues, IPS is taking on the challenge of transforming the Philippine telecommunications market as a Japanese company, bringing new value to the region.
ENTERPRISE
We established a local telecommunications subsidiary to provide high-speed, high-capacity internet services
Our telecommunications business in the Philippines is conducted through InfiniVAN, Inc., an IPS-invested company. After acquiring a stake in InfiniVAN in 2015, we worked closely with the Philippine government and obtained the necessary licenses to operate a telecommunications business in 2017, and since then, we have been providing broadband internet services in the Philippine market. CC core businesses include corporate internet service provider (ISP) services in Metro Manila on Luzon Island, as well as the provision of infrastructure to regional telecommunications and cable TV operators through the deployment of fiber-optic networks on Mindanao and Panay Islands.
Internet Service Network Map for Metro Manila and Across the Philippines
METRO MANILA NETWORK
Building a High-Quality Network in Metro Manila
Delivering Stable, Japanese-Quality Connectivity Along Railway Lines
Our corporate ISP services in Metro Manila are primarily focused on Makati City, one of the country’s leading central business districts. With competitive pricing, we have steadily expanded our customer base since launch. In addition to Makati, the Philippines has several other central business districts (CBDs), and we plan to expand our presence into these areas. To support this expansion, we are developing network infrastructure that connects each CBD. However, deploying underground fiber-optic cables in Metro Manila presents significant challenges due to chronic traffic congestion. To address this, we are installing fiber-optic networks along railway lines such as the LRT-2 and MRT-3, enabling stable and redundant connectivity through multiple routes. By leveraging Japanese-quality standards, we are building a highly reliable network infrastructure.
MINDANAO, PANAY
Deploying High-Capacity Networks in Mindanao and Panay
Building Telecommunications Infrastructure Across the Philippines
InfiniVAN is also advancing its business by deploying fiber-optic networks in Mindanao and Panay, providing high-quality telecommunications infrastructure to regional telecom operators and cable TV providers. In addition, through the completion of the PDSCN—developed in collaboration with multiple telecommunications operators in the Philippines and connecting Luzon, the Visayas, and Mindanao—we are contributing to the development of a robust nationwide telecommunications infrastructure, while further expanding our business through both wholesale capacity sales and internal utilization.
Mindanao Island