One of Australia’s most successful information technology entrepreneurs has strengthened his business case for building a submarine cable from Perth to Asia.
SubPartners is planning to invest $450 million building submarine cables from Perth to Singapore via Jakarta, and another between Sydney and Auckland.
It’s one of three companies pushing to be the first to begin construction of a cable from Perth, as demand for more than one cable is weak.
The company says the deal with Indosat will help SubPartners gain necessary approvals for landing the cable in Indonesia - arguably the most difficult aspect of the project.
Indosat’s key role will be helping SubPartners build a branch connection from the Perth cable at its landing station at Ancol, Jakarta.
That company was later sold to TPG for around $420 million in 2010, by which time Mr Slattery has already started his next venture, NEXTDC, which has become one of Australia’s largest independent data centre providers.
Mr Slattery is still the company’s largest shareholder and is deputy chairman.
All three companies are planning to have cables ready for service between the end of 2014 and mid 2015.