Telecom explores cable link to Asia

The two telcos say a feasibility study into the proposal is underway. Cable & Wireless Optus is also in on the deal.

If the proposal goes ahead the partners say a submarine cable will be built linking Singapore, Jakarta and Perth.

Telecom network executive, Simon Moutter, says an Asia-Australia link could complement the recently commissioned Southern Cross Cable Network.

"Our investments in cable have reaped rewards - operationally and financially.

"Similarly, if this proposal goes ahead, it would be a solid investment opportunity for all three companies."

In its latest quarterly financials Telecom recorded a $245 million dividend from its Southern Cross Cable investment.

A Cable & Wireless Optus spokesman says it's a "great proposal" while SingTel executive, Lim Shyong, says his company is excited by the prospective joint venture.

"With the increasing demand for bandwidth in the region it makes perfect business sense for us to provide an efficient and cost-effective solution.

"The three companies already carry significant traffic on this route and our capacity requirements will continue to expand."

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