Cable & Wireless Optus, Telecom New Zealand and Singapore Telecommunications (SingTel) today announced they are working on a broad proposal to establish a new telecommunications cable system between Singapore and Sydney.
Should the proposal go ahead, a submarine cable will be built linking Singapore, Jakarta and Perth. From the new cable, connections can be made throughout Australia and the Asia-Pacific region via the carriers' existing cable networks.
Chris Hancock, Managing Director, Data & Business Services, Cable & Wireless Optus, said the companies were in early discussions and were interested in exploring opportunities to fulfil increasing broadband demands in the Asia Pacific region.
"The Asian region is a large and rapidly expanding market for corporate and IP services. All three companies have identified a growing need for robust infrastructure between Australia and Asia," Mr Hancock said.
"Our customers are demanding more and more bandwidth as they e-enable their businesses. This cable can forge an important link between the businesses of Asia and Australia. 'Subject to Board approval - and detailed financial terms - we believe this is a great proposal," Mr Hancock said.
Simon Moutter, Group General Manager Network, Telecom New Zealand, said the Asia to Australia link would complement the recently commissioned Southern Cross Cable Network. "Our investments in cable have reaped rewards - operationally and financially. Similarly we look upon this proposal as a solid investment opportunity for the future of all three companies," Mr Moutter said.
Mr Lim Shyong, Executive Vice President (Global Business) of SingTel said the cable would be suitable for mission-critical data and high bandwidth applications.
"We are very excited about this joint-venture as Australia has always represented an important part of our regional expansion plans.
"With the increasing demand for bandwidth in the region it makes perfect business sense for us to provide an efficient and cost-effective solution.
"The three companies already carry significant traffic on this route and our capacity requirements will continue to expand. By committing to work together, SingTel, Telecom New Zealand and Optus can plan to meet demand for years to come," he said.
The proposed cable system will utilise Dense Wavelength Division Multiplexing (DWDM) technology and will vastly expand the capacity for streaming video, internet traffic and other IP network-based applications.
About Cable & Wireless Optus
Cable & Wireless Optus is Australia's leading integrated communications company - serving around five million customers each day. The company provides a broad range of communications services including mobile, national and long distance services, local telephony, business network services, internet and satellite services and pay television.
Since commencing operations in 1992, Optus has invested more than $7bn in the construction of fixed, mobile and satellite networks, including central business district and suburban local access networks. These networks provide the company with an advanced technology platform capable of delivering integrated communications, information and entertainment services.
About SingTel
SingTel is Asia's leading communications company with a comprehensive portfolio of services that include voice and data services over fixed, wireless and internet platforms. Serving both the corporate and residential markets, SingTel is committed to bringing the best of global communications to its customers in the Asia Pacific and beyond. It has built the infrastructure that has helped transform Singapore into a global hub and is today the country's largest company in terms of market capitalisation.
The SingTel Group is expanding rapidly into overseas markets, with current investments of more than S$5 billion (US$2.9 billion) in over 20 countries and territories. Its major investments include Belgacom of Belgium, Advanced Info Service of Thailand, New Century Infocomm of Taiwan, the Bharti Telecom Group of India and Globe Telecom of the Philippines. With a heritage of over 120 years, SingTel aims to be the Asian partner of choice for telecommunications operators across the world. More information can be found at www.singtel.com.
About Telecom New Zealand
Telecom is New Zealand's leading fixed line, mobile, internet and data communications provider. Its goal is to be the best performing customer focused online and communications company in Australasia. It has made a major step towards that with the purchase of Australia's third largest telecommunications company AAPT.
Telecom has positioned itself for growth in the convergence of telecommunications, information technology and entertainment services. Telecom is rolling out new broadband networks and technologies, and forming strong alliances with other leaders in the fast emerging world of e-commerce, online services and mobile communications.
Telecom has sophisticated national and international network including an almost 100% digital PSTN, a fully diverse national and international transport network, ADSL broadband technology available to more than half its customers and an advanced CDMA mobile technology due for launch in July 2001.
Telecom's six operating units comprise: trans-Tasman internet and mobile businesses; an AAPT voice and data services business; an Australian subsidiary which supports the complex telecommunications and IT needs of corporate clients; the New Zealand-based voice and data business; and an alliance with Microsoft and EDS in New Zealand to provide e-commerce solutions to small and medium-sized businesses.
With a market capitalisation of about $10 billion, Telecom is New Zealand's largest listed company. It is also listed on Australian, United States and United Kingdom markets. Telecom has about 7,000 staff.
For more information:
Cable & Wireless Optus
Phone: +61 2 9342 7850
Francis Huan
SingTel
Phone: +65 838 3065
Andrew Bristol
Telecom New Zealand
Phone: +64 4 498 5594