TM LEADS 17-MEMBER CONSORTIUM OF TELCOS TO ESTABLISH ASIA-AMERICA GATEWAY (AAG) - THE FIRST SUBMARINE CABLE SYSTEM LINKING SOUTH EAST ASIA DIRECTLY TO USA
AAG to further improve communications links & increase bandwidth capacity for region
Telekom Malaysia Berhad (TM) is leading a consortium made up of 17 major international telecommunications providers to build the first high-bandwidth optical fibre submarine cable system linking the South East Asia region directly to the United States of America (USA).
The cable system, known as the Asia-America Gateway (AAG), is expected to cost approximately US$500 million (RM1.8 billion).
The project is spearheaded by TM along with AT&T Inc. (USA), Bharti AirTel (India), Government of Brunei Darussalam (Brunei), British Telecom Global Network Services (UK), CAT Telekom (Thailand), Eastern Telecommunications Philippines Inc. (Philippines), Indosat (Indonesia), Pacific Communications Pte Ltd (Cambodia), Philippines Long Distance Telephone Co. (Philippines), PT Telkom (Indonesia), Saigon Postal Corporation (Vietnam), StarHub (Singapore), Telstra (Australia), Telecom New Zealand International (New Zealand), Viettel (Vietnam) and Vietnam Post & Telecommunications Group of Vietnam (Vietnam).
The signing ceremony for the establishment of the cable system was held today and represented by leaders of the region’s key telcos. The ceremony was witnessed by Dato’ Sri Dr. Lim Keng Yaik, Minister of Energy, Water and Communications and Tan Sri Dato’ Ir Md Radzi Mansor, Chairman of TM.
Dato’ Sri Dr. Lim Keng Yaik said that the establishment of the AAG would strengthen communications links and business ties between Asia and the US, the world’s two most dynamic economic regions.
He said, “I am very proud that through TM we can see Malaysia taking the lead in an initiative that will be of tremendous benefit to the entire region. The AAG will definitely help meet demand for more Internet capacity as it continues to surge upwards and today’s move by the consortium spearheaded by TM is certainly a forward looking move in the right direction. As the AAG is from a single cable network, not only will it have improvements in lowering latency, it will also simultaneously ramp up the international bandwidth capacity to Malaysia at more competitive costs.”
“This impressive joint-effort will go a long way in increasing broadband uptake in this region, which will in turn increase the overall appeal for global investments and increase the competitiveness of the countries benefiting from direct links to the Asia-America Gateway,” he added.
Meanwhile, Dato’ Abdul Wahid Omar, Group Chief Executive Officer of TM said that the AAG project demonstrated TM’s commitment to invest in the development of IP communications in the Asian region and to extend broadband access to a wider audience.
He said, “The AAG will provide a timely increase in both the capacity and diversity of Internet links between Asia and the US, bearing in mind the disruptions caused by the recent Taiwan earthquake late last year. When it begins operations, Internet users can look forward to faster and more reliable international connectivity. Besides our investments overseas and partnerships with other regional telecommunications players, TM’s role in leading impactful initiatives like this will help us fulfil our vision of becoming a leader in the regional telecommunications landscape.”
Besides providing additional bandwidth capacity, the AAG is intended to provide an alternative and a more secure link for traffic from the region to the USA. This low risk route was designed to avoid the volatile and hazardous Pacific Ring, thus mitigating the effects from natural disasters like earthquakes and tsunamis, which have previously damaged submarine cable systems, resulting in major disruptions to international Internet links.
The 20,000km long AAG cable system is designed to provide a capacity of up to 1.92 Terabits per seconds of data bandwidth. Upon its completion, the system will initially have a capacity of 480 Gigabits per second to meet present and future requirements for telecommunications services. The AAG utilises Dense Wavelength Division Multiplexing technology, which enables it to provide upgradeable future proof transmission facilities that support Internet and e-commerce traffic.
Construction will begin immediately and when completed, the cable system will connect 10 locations in 8 countries across the Asia Pacific region, namely Malaysia, Singapore, Thailand, Brunei, Hong Kong, the Philippines, Vietnam, Guam, Hawaii with the US West Coast. The AAG is intended to compliment existing cable systems like the Asia Pacific Cable Network 2 (APCN 2) & Japan-US Cable Network currently connecting to North America via North Asia. The AAG also provides seamless interconnection for the abovementioned countries towards other regions like Europe, Australia, Africa and other parts of Asia.
The AAG is expected to begin carrying commercial traffic by December 2008. The completion of the AGG is timely as it coincides with the anticipated exhaustion of existing consortium cables and the retirement of the first generation Asia Pacific – Synchronous Digital Hierarchy (SDH) cable systems like the APCN and Trans Pacific Cable (TPC-5) systems.
The Supply Contract for the construction of the cable system will be signed later today between the key consortium members and a consortium made up of Alcatel Submarine Network (ASN) and NEC Corporation, who have been awarded the contract for the construction of this link.
About TM
Telekom Malaysia Berhad (TM), a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia with an operating revenue of more than RM16 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.
The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 13 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.
On the Corporate Social Responsibility (CSR) front, the Group has always been a major corporate contributor towards responsible activities in the belief that these practices are a fundamental tenet of good corporate governance. The Group promotes 3 major platforms i.e. education, sports development and community/nation-building. Under education, TM has spent some RM800 million to develop Multimedia University with more than 20,000 students. TM has also provided scholarships to over 10,000 graduates pursuing academic programmes locally and overseas. On the sports front, TM is actively contributing towards the upliftment of football at all levels while under the community/nation-building platform, the Group contributes towards causes that bring value to the community and nation at large.
For further information on TM, visit www.tm.com.my
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