SubPartners was originally established to develop high performance secure worldwide cable systems capable of providing improved connectivity between Australia and the rest of the world. Indigo will connect Singapore and Perth, and onwards to Sydney.
The consortium, which also includes Google, Singtel, AARNET, Indosat Ooredoo and SubPartners, says it expects the new cable system to improve network connection speeds and reliability.
Superloop asserts the acquisition will deliver them strategic assets, including ownership of global submarine cable capacity as a member of the INDIGO consortium that is constructing the INDIGO West cable (Singapore to Perth) and the INDIGO Central cable (Perth to Sydney). SubPartners originally announced a Perth-Singapore cable back in 2013, with the intent to finance the construction itself and allow other companies to buy capacity. The cable will "provide Australia with a new diverse worldwide route into south east Asia", he added. A ranching unit with two additional fiber pairs will connect Singapore and Jakarta.
Telstra's group managing director of global services and worldwide David Burns said with internet data consumption growing by 70% in Asia previous year, investments such as Indigo are critical for meeting the connectivity needs of consumers and businesses.
Ooi Seng Keat, Vice President, Carrier Services, Group Enterprise at Singtel said, "The construction of Indigo is timely to meet the rising demand for high-speed broadband between Asia and Australia".
ASN will construct the cable, which is expected to be completed by mid-2019.
According to Superloop, it will be able to expand its cable capacity independently of the other consortium members. This cable system complements our global connectivity that links Asia, the US, Europe, Australia and the Middle East. Indigo will be a new data superhighway that facilitates Singtel and Optus to catalyse the development of digital economies across the regions. If approved, Slattery's holding in Superloop will be 29.1 percent; if not, he will be paid US$2 million.
Superloop owns and operates over 540km of fibre networks in Australia, Singapore and Hong Kong, connecting over 70 data centres.
Google has invested in more cable projects than others.