StarHub invests in S$552m submarine cable

SINGAPORE: StarHub has joined hands with Japan-based NTT Communications, Philippines-based PLDT and Malaysia's Telekom Malaysia in building and operating a S$552 million submarine cable which experts say will appeal to high net worth clients.

The 7,200-kilometre Asia Submarine-Cable Express (ASE) will link Singapore directly to Japan, the Philippines and Hong Kong.

The new submarine cable system is specifically designed to avoid earthquake and typhoon-prone regions, such as the Bashi Channel south of Taiwan.

The system will also have access to Malaysia, and potentially future connectivity to Mainland China, as well as other Southeast Asian countries.

StarHub chief operating officer Tan Tong Hai said: "For businesses -- especially those that deal with time-critical transactions -- a network that minimises latency is vital and can make or break a deal".

OCBC Investment Research research manager Carey Wong said: "I think from (a) revenue point (of view), it may not be a lot because it is also running cables and using cables to carry its own data.

"Increasingly the cost of carrying data is getting (higher). We are seeing greater usage from band width from the telcos -- especially the mobile devices -- so in this case, being one of the partners, StarHub could get a better deal from the consortium".

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