TM wins RM720mil submarine cable job

  • Business
  • Wednesday, 31 Dec 2014

PETALING JAYA: Telekom Malaysia Bhd (TM) has won a contract worth RM720mil from the Malaysian Communications and Multimedia Commission (MCMC) to develop and construct a new submarine cable system called Sistem Kabel Rakyat 1Malaysia (SKR1M).

According to an industry source, the contract, which was won via open tender, will see TM pumping in between RM200mil and RM300mil into the project, which will be established through a public-private partnership arrangement between MCMC and TM.

The remaining contract amount would see the utilisation of the Universal Services Provision Fund, which is under the purview of MCMC, said the source.

Meanwhile, TM said in a statement yesterday that the new cable system, which would link Peninsular Malaysia with Sabah and Sarawak, would span about 3,500km and have an initial capacity of four Terabit per second (Tbps).

It said the SKR1M cable system was designed to provide upgradeable and transmission facilities by adopting the state-of-the-art 100Gbps technology.

“This new submarine cable system is expected to start carrying commercial traffic by mid-2017.

“This huge bandwidth will improve the user experience by minimising potential traffic congestion between Peninsular Malaysia, Sabah and Sarawak,” TM said.

“In addition, this also allows further growth in bandwidth-hungry as well as Internet-based applications to flow between these areas smoothly,” it added.

TM is well experienced in the domestic, regional and global submarine cable development and investments.

It owns more than 10 submarine cable systems, which span more than 100,000 fiber-route miles around the globe, including several submarine cable routes that the company uses to carry traffic between Asia-Pacific region and North American region.

In addition to the newly signed South East Asia-Middle East-Western Europe Cable System 5 (SEA-ME-WE 5), TM is also a member of various consortiums for submarine cable systems in the region.

These include the Asia America Gateway Cable Network (AAG), South East Asia-Middle East-Western Europe Cable System 3 (SEA-ME-WE3-SMW3), SEA-ME-WE4 (SMW4), Asia Pacific Cable Network 2 (APCN2), Batam-Rengit Cable System (BRIGHT) and Batam-Dumai-Melaka Cable System (BDM), Cahaya Malaysia, including the new Bay of Bengal (BBG) cable system.

Additionally, TM also invests in other cable systems such as Japan-US Cable Network (JUSCN), China-US Cable Network (CUSCN) and South Atlantic 3/Western Africa Submarine Cable/South Africa Far East (SAT-3/WASC/SAFE).

To date, TM’s total design capacity of its international submarine cables stands at 30 Tbps and it is sufficient to cater for future international bandwidth demand increase.

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