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Wednesday, January 17, 2007

USD636 million trans-Pacific cable project

Asia Netcom, a former unit of China Netcom Group that was bought out by private equity last year, has announced that it and several partners will build a new trans-Pacific cable at a cost of USD636 million. The cable, a loop, will connect Japan with the United States on its northern route, and will connect the Philippines to the United States via Guam and Hawaii on its southern route. Asia Netcom’s partners in the project include the three private equity firms that bought the regional network operator last year - Spinnaker Capital, Clearwater Capital and Ashmore Investment – as well as several others.

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The new cable's southern route will be the first connecting Asia with the US without going through Japan, and is expected to be 26% faster for southeast Asia clients than the traditional routes through Japan. The southern route will also avoid the seismically active area south of Taiwan, where several major cables were damaged after a large earthquake struck the area on 26 December last year, leading to major service disruptions.

Source : Telegeography

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