Keppel Telecommunications & Transportation (Keppel T&T) via its wholly-owned subsidiary Keppel Midgard Holdings (KMH), has entered into a joint build agreement with a subsidiary of Facebook Inc and Telekomunikasi Indonesia International (Telin), a subsidiary of Telkom Indonesia (Persero), to jointly own and develop the Bifrost Cable System.
The system, spanning 15,000km, is the world’s first subsea cable system that directly connects Singapore to the west coast of North America via Indonesia through the Java Sea and Celebes Sea. When fully commissioned, the system will also be the largest capacity high-speed transmission cable across the Pacific Ocean. It is expected to be completed in 2024.
KMH’s share of the total project costs as a joint build partner will be approximately US$350million ($467 million). Keppel T&T, Facebook and Telin have appointed Alcatel Submarine Networks (ASN) for the supply and installation works of the cable system.
Thomas Pang, CEO of Keppel T&T, says that the project is a transnational critical infrastructure which will enhance Singapore’s role as a digital hub.
SEE:Keppel T&T in partnership to enhance Singapore's Internet connectivity
“In line with Keppel’s asset-light model, we can also collaborate with funds managed by Keppel Capital to help provide funding for the project,” he adds.
Kevin Salvadori, vice president, network at Facebook, says that the company is committed to bringing more people online to a faster internet, to support the growth of digital economies, and to do this in collaboration with local partners.
Meanwhile, Sukardi Silalahi, CEO of Telin, says that the system will cater to a massive demand of internet from Indonesia to the world and vice versa.
As at 1.04pm, shares in Keppel Corporation are up 11 cents or 2.12% higher at $5.31.
