$170m cable to connect Perth, Singapore

A joint venture between Nextgen Group and Vocus Communications is considering plans to construct a submarine telecommunications cable between Perth and Singapore.

The $170 million project involves the construction and operation of a 4,600-kilometre cable to directly connect Western Australia to Singapore via Indonesia, with the potential to provide the first 100 gigabytes per second high-speed connection from WA to South-East Asia.

The deal is subject to diligence.

Vocus acquired operations in Perth when it took over Amcom Telecommunications earlier this year, while Nextgen owns a ‘tier 3’ data centre in Shenton Park.

Nextgen has also invested $20 million in expanding its Shenton Park facility to triple its existing capacity.

Nextgen chief executive David Yuile said Vocus was an ideal partner in the project as it already had capacity on several existing international cables.

“Our new cable will provide a high-speed, low latency path to Singapore and Jakarta, both key growth markets and IT centres,” Mr Yuile said.

“It will also be very beneficial for the WA economy, particularly the resources sector, providing direct connectivity to the Asia Pacific region.

“In a broader context, the project is important nationally as it will add value to available telecommunications infrastructure and provide subsea cable diversity for governments and businesses around the country.”

Construction on the cable is scheduled to begin in the first quarter of next year, with completion expected within 18 months.