Vocus has executed a binding agreement with Alcatel-Lucent Submarine Networks for the construction of the Australia Singapore cable project set to cost US$170 million (A$227 million).
The Australia Singapore cable contract was inherited from the Nextgen Network acquisition for $27 million, announced in June. The project is a 4600km submarine cable connecting Australia to Singapore and Indonesia with 100GB/s internet.
The Australia Singapore cable is expected to be built and completed in 19 months, with the delivery date set for August 2018.
Vocus announced it had secured Singapore Infocomm Development Authority approval and renewed Landing Rights with the Ministry of Communications and Information Technology in Indonesia.
A partnership has also been secured with XL Axiata Tbk, an Indonesian telco service provider, which provides security of tenure, commercial arrangements and nation-wide coverage in Indonesia through the local provider's 21,000km domestic transmission network.
According to Vocus, in a report on behalf of the Australia Singapore cable project early this year, market research firm TeleGeography estimated bandwidth demand between Australia and Asia would exceed 50Tbps by 2029.
With the report estimating a minimum 15.5 Tbps capacity by 2029, this could represent revenues of US$550 million.