Superloop Limited flags the first submarine cable system connecting Australia and the South East Asian market. It translates the ‘final splice’ achieved by Australia’s first transcontinental submarine fiber optic cable, INDIGO. The news sent the share to upsurge 2.143% to trade at $1.430 on 24 December 2018.
In today’s announcement to Australian Securities Exchange, Superloop Limited (ASX: SLC) announced that INDIGO operated by consortium members had created the first submarine cable system connecting Singapore to Sydney through INDIGO West.
The report read that both INDIGO Central and INDIGO West have achieved ‘Final Splice’ which outlines the conclusion of subsea cable installation, developing an entire path from landing station to landing station. It represents the shortest submarine cable route between Singapore and Sydney that is reported to be around 4,000 thousand kilometers more concise than the next shortest submarine path.
Superloop CEO Drew Kelton stated that INDIGO would turn into an essential piece of the infrastructure project for Australia, giving a tough fight in the Australian connectivity market.
This news comes after Superloop inked an agreement with ASX listed IT company NEXTDC Limited to provide optical layer connectivity to INDIGO for the NEXTDC’s data centers in Perth and Sydney. With this, NEXTDC’s customers will have access to INDIGO subsea cable system that provides the most direct connectivity between Sydney and Perth and the fastest gateway into Singapore through an ordinary Cross Connect.
NEXTDC CEO Craig Scroggie stated that INDIGO as NEXTDC’s first P2 customer defines the escalating significance of cloud-to-cloud connectivity that supports the cloud-based economy of Perth.
INDIGO is operated by a group of consortium members that include AARnet, Google, Indosat, Singtel, SubPartners now acquired by Superloop, and Telstra. INDIGO is a subsea cable system that is designed to connect Indonesia, Singapore, and Australia creating shortest subsea links with the targeted speeds of 36 terabits per second. Superloop stated that INDIGO cable network delivers a latency benefit of around 40-millisecond over current submarine cable systems connecting to Singapore and Sydney.
Following the completion of the final splice, the cable will reportedly enter a period of testing and acceptance before streaming live and providing commercial services. As per the previous report, the connections are expected to go live with INDIGO rolling out ‘ready for services’ phase in the first six months of calendar year 2019.
In today’s trade, Superloop’s stock concluded the session at higher levels with Price to Earnings 43.890 x and a market capitalization of $320.04 million. But over the last 12 months, SLC has massively fallen by 42.39% including a plunge of 16.67% over the past one month.
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