This news struck me as a surprise, and was relatively quietly announced - I didn’t get to know about it until someone told me recently.

Apparently, TM is the lead player in a consortium to implement an Asia-US submarine cable, formed by 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 cable is called the AAG, or Asia America Gateway. The AAG will provide a seamless direct link between the US and other Asian countries via one single cable. It also has the ability to be expanded to Australia, India, Africa, and Europe. Spanning over 20,000 km, AAG will link Malaysia to the US via Singapore, Thailand, Brunei, Vietnam, Hong Kong, the Philippines, Guam, Hawaii and the West coast of the US. The cable system is designed to provide a capacity of up to 1.92 Terabits per second of data bandwidth.
It will have an initial capacity of 480Gbps.

TM holds 9% in the equity of the project (majority shareholder). The contract is worth approximately $US500 Million. (Which means TM’s 9% equity is $US45 million / RM157million).

A quote from CEO, Datuk Abdul Wahid Omar: “While we are present in 13 countries in the region and involved in seven existing major submarine cable consortiums, this initiative is still one of the biggest we have undertaken. It will provide TM with additional 60Gbps of capacity, which will help reduce any future potential congestion we may face.”

Another quote: 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,”

Analysis: Assuming this goes well, Malaysia will surpass Singapore and Thailand in being a regional hub. That means, just like how Malacca was a hub for international trade in the days of yore, Malaysia could be come a hub for international traffic.

Congratulations TM! Let’s hope this happens soon, and that we can see some speed improvements by early next year. My internet connection is getting slower as of late…and from the news article, this project is scheduled to be completed only by December 2008…

You can read more here, on IT Wire, or on TM’s press release section on its official website.