$18.5m Singtel deal seals cable link

Singapore’s telecommunication giant Singtel Telecommunications has signed an $18.5 million deal with Amcom Telecommunications for access to its broadband connection across Australia.

It is the first major deal for Perth-based Amcom on its long-haul fibre link being constructed between Australia’s eastern and western seaboards.

The agreement has effectively underwritten the construction of the 3,875 kilometre transcontinental link between Melbourne and Perth, due to be completed in June 2002.

Work has already started on the Melbourne-Adelaide sector, which is to be finished this April.

The transcontinental link in Australia will have significant strategic value for SingTel, Asia’s largest telecommunications operator, says its Australian managing director, Wee Kee Long.

The deal provides SingTel with a global path for the Asia region giant’s rapidly growing volumes of data traffic in the Asia-Pacific.

Amcom’s managing director and CEO Andy McLean said the deal represented a major coup for his company and cemented its long-term relationship with SingTel – which was underpinned through the signing of a memorandum of understanding between the two carriers in September last year.

“It opens the door to additional exciting opportunities with other major carriers and bandwidth providers in the region, including the owners of the SEA-ME-WE 3 (SMW3) off the west coast and Southern Cross and Australian-Japan (AJC) sub-sea cable networks on the east coast of Australia,” Mr McLean said.“It also endorses our IP1 (Indian Pacific 1) project.”

The IP1 project offers the latest DWDM (dense wave division multiplexing) technology combined with physical security and state-of-the-art network management.

“The IP1 link is a scalable solution with flexibility to accommodate the explosive bandwidth growth projected in the regional carrier market,” Mr McLean said.

Amcom owns and manages both intracity and intercapital optic fibre links servicing the corporate and wholesale market segments. In addition to metropolitan networks in five Australian cities, Amcom delivers national end-to-end high-speed carrier services through either wholly-owned or leased intercapital infrastructure.

A separate agreement with Singapore Telecom (SingTel) involves the reciprocal supply of trans-Australian bandwidth to the pan-Asian telco giant and provides Amcom with access to SingTel’s international optic fibre network.

This MOU is expected to increase Amcom’s network traffic and deliver substantial new revenue streams.

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