NXT And SLC Entered Into INDIGO Partnership To Connect Australia And South East Asia

  • Nov 13, 2018 AEDT
  • Team Kalkine
NXT And SLC Entered Into INDIGO Partnership To Connect Australia And South East Asia

NEXTDC Limited (ASX: NXT) (“NEXTDC” or “the Company”) is happy to make an announcement about its agreement with Superloop Limited (ASX: SLC) in regard to provide connectivity to the new INDIGO subsea cable system for its data centre located in Perth(P1 and P2) and Sydney data center(S1 and S2). 

As per the agreement, SLX is supposed to provide NEXTDC with optical layer connectivity to INDIGO. They need to provide the connectivity which is ready for service in 2HFY19 having a speed of 36 terabits per second. Also, SLX is NEXTDC’s initial customer at NEXTDC’s new world-class 20MW P2 Tier IV data center situated in the East Perth. This data center is in the development phase.

The INDIGO subsea cable stretches 9,200km. It starts from Singapore and stretches till Perth. In between, it also covers Jakarta and onwards to Sydney. The INDIGO group of members who are responsible to build the cable are, AARnet, Google, Indosat, Singtel/Optus, Superloop and Telstra.

Those NEXTDC customers based in Perth and Sydney will enjoy the shortest submarine route to Singapore as well as they will be benefitted from Asia Pacific’s shortest submarine route to Singapore. The Asia Pacific shortest submarine route is an important ASIAPAC pathway to Europe and Africa. The route from Sidney to Singapore will get reduced by approximately 4000 km by using the INDIGO Central and INDIGO West cables. This will not only reduce the distance but also provide greater trustworthiness and reduce expectancy.

The CEO of NEXTDC, Craig Scroggie stated the customers of NEXTDC expects their network design, their applications, and service delivery capabilities to have world-class services. Further, they expect direct access to the fastest and the most diverse connections available. He says that this partnership with Superloop will help the customers of NXT to access direct connectivity from Perth to Sydney and vice versa. The access also includes the regions in between Perth and Sydney. It will also provide the fastest gateway into Singapore through a simple cross-connect. Indigo is the first P2 client of NEXTDC, highlights the importance of progressing cloud to cloud connectivity across the world. Further, it will support Perth in speeding up towards a cloud-based economy.

The CEO of Superloop Drew Kelton stated that they are able to visualize the benefits of their investments into the infrastructures in South East Asia as well as Australia. Indigo is acting as a pathway between these two markets. Joining hands with NEXTDC will act as a catalyst to expand the Australian business in Asia as well as those Asian businesses who are based in Australia.

In the AGM, the chairman addresses the key operational and financial matrices. There was an increase in revenue by 31% to $62.6 million. The underlying EBITDA also got increased by 28% to $62.6 million. There was an increase in the customers by 26%. The company is now having 470 partners. There was an increase in the connectivity by 37% which is approximately 8,700 connections. Today the share price of the company was A$6.225 (AEST: 1:40 pm) with the market capitalization of A$2.25 billion and 288.89x.


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