MANILA, Philippines – Globe Telecom Inc, jointly owned by conglomerate Ayala Corporation and Singapore Telecommunications (Singtel), has joined a consortium that would build a $250-million undersea cable system directly connecting Southeast Asia to the United States (SEA-US).
Globe chief operating officer Gil Genio said the company and wholly-owned subsidiary GTI Corporation is spending more than $80 million for the SEA-US undersea cable system slated for completion in the last quarter of 2016.
The 15,000-kilometer cable system would link Manado in Indonesia, Davao in the Philippines, Piti in Guam, Oahu in Hawaii, and Los Angeles in California, providing superior latency delivering additional 20 terabits per second (Tbps), utilizing 100 gigabits per second (Gbps) transmission equipment.
The cable system is expected to provide more efficient connectivity to 1.5 billion people through route diversity from the North Pacific and avoid earthquake prone areas in East Asia.
Genio pointed out that the project would help underpin local economic growth as it provides support for expanding business requirement for data.
Genio added that the Philippines has become a preferred destination for the outsourcing and offshoring industry including major call centers, business process outsource providers, global financial institutions, and a host of other multinational companies that require very large bandwidth.
“The SEA-US cable system will further strengthen Globe’s network resiliency and next-generation technologies,” Genio added.
Apart from Globe and GTI Corporation, other members of the consortium include PT Telekomunikasi Indonesia International (Telin), Telkom USA, RAM Telecom International (RTI), Hawaiian Telcom, and Teleguam Holdings (GTA).
Globe also invested in the 8,900-km Southeast Asia-Japan Cable (SJC) system that links Brunei, mainland China, Hong Kong, Japan, Singapore, and the Philippines, including the option to link with Thailand.
It is also part of the East Asia Cable system, Asia Pacific Cable Network-2, Tata Global Network–Intra Asia cable system, and the City to City cable system that is interconnected with major Trans-Pacific Cable systems encompassing the Unity, Tata Global Network-Pacific, and the Japan-US Cable Network.
Globe has also existing domestic cable systems catering to transmission requirement connecting Luzon to various islands in Visayas and Mindanao.
The listed telecom provider also raised recently P10 billion ($229.01 million) from the issuance of new preferred shares to bankroll its capital expenditures this year.
Globe has earmarked P29 billion ($664.14 million*) for its capital expenditures this year or almost the same level as the P28.99 billion ($663.91 million) spent in 2013.
Meanwhile, PLDT reported on August 22 that it tied in with Hong Kong’s PCCW Global to put up a new international fiber optic cable system that would connect the Philippines with 17 international destinations.
The Asia-Africa-Europe 1 (AAE-1) cable system would connect the Philippines to Cambodia, Djibouti, Egypt, France, Greece, Hong Kong, India, Malaysia, Oman, Pakistan, Saudi Arabia, Singapore, Thailand, Qatar, Vietnam, United Arab Emirates, and Yemen once completed in 2016. – Rappler.com
Network and power cables image from Shutterstock
($1 = P43.67)
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