Singapore telcos have share in US$1b Asia Pacific cable network

 

Summary

Local telcos Singapore Telecoms Ltd and StarHub Pte Ltd have signed an agreement with 44 other telcos in the region to bring the US$1 billion Asia Pacific Cable Network 2 (APCN 2) to Singapore.

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SINGAPORE--Local telcos Singapore Telecoms Ltd and StarHub Pte Ltd have signed an agreement with 44 other telcos in the region to bring the US$1 billion Asia Pacific Cable Network 2 (APCN 2) to Singapore.

SingTel and StarHub will invest US$40 million and US$30 million respectively in the submarine cable network, which links the Asia Pacific region. ACPN 2 will link countries like China, Hong Kong, Japan, Korea, Malaysia, the Philippines and Taiwan.

Other major owners and operators of APCN 2 include Cable & Wireless Global Network, China Telecom, Chunghwa Telecom, Concert Global Network Services Ltd, Global One, Japan Telecom, KDD Corp, Korea Telecom, MCI Worldcom, NTT Com, Taiwan Fixed Network, Teleglobe, Telekom Malaysia and Telstra.

The cable will have a fibre optic capacity of 2.56 terabits per second and is estimated to be 19,000 kilometers long. It will provide additional capacity to meet the growing demand for voice, data and Internet bandwidth in the region. APCN 2 will also provide further links to the US, Europe and other parts of Asia Pacific through other transpacific networks.

The investors of APCN 2 have awarded a US$800 million supply contract for its construction to NEC Corp of Japan. Construction has commenced and commercial service is expected by the third quarter of 2001.

"(APCN 2) will supplement SingTel's existing cable capacity in Asia Pacific and offer enhanced cable diversity and reliability for international telecommunications services to our customers," said SingTel chief operating officer Lim Toon.

Meanwhile, StarHub CEO and president Terry Clontz feels that the agreement will result in new partnerships in Asia and beyond. "StarHub understands the value of partnerships to deliver what our customers expect and want," he said.

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