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Asia to get new cable links to USA

IT Industry - Strategy

Asia Netcom has announced plans to built two new submarine cable links between Asia and the USA, expanding its regional submarine cable system, East Asia Crossing (EAC).

The new 23,500 km link - EAC Pacific expected to be completed by July 2008 - will extend the existing infrastructure with a new trans-Pacific ring. It will consist of a northern route connecting Japan to the US, and a southern route linking the Philippines to the US via Guam and Hawaii. EAC Pacific will also include a subsea link between the Philippines and Japan, which will close the ring design and integrate the trans-Pacific infrastructure with the current system.

The move follows the announcement yesterday by Asia Netcom's parent company, Connect Holdings, of a takeover bid for regional Internet service provider - Singapore based Pacific Internet (NASDAQ: PCNTF)

EAC Pacific says it has received committed funds of $US636M through its partners, investors and debt holders which will cover the build and peak funding requirements for the new system. It will be funded using a new capital structure that is hybrid of the traditional club cable and a private cable structure. Asia Netcom says it will announce its landing partners for the system by April 2007 and will complete vendor selection by May 2007.

"In light of the recent events that followed the Boxing Day earthquakes off the coast of southern Taiwan, there is clearly a need for more diversity between Asia and the US," said Asia Netcom CEO, Bill Barney. "EAC Pacific is designed to enhance the connectivity options of the fast growing South Asian region and create a dedicated expressway for that region to connect to the US as well as Japan and North Asia."

The new EAC Pacific system will have four fibre pairs each capable of supporting a minimum design capacity of 2.56Tbps using 64-wavelength dense wavelength division multiplexing technology capable of transporting 10 Gbps per wavelength.

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