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Fintech Intelligence Digital Newsletter: April 2021

Google APAC to push cloud business through subsea cable launch

Google LLC has announced the completion of a subsea cable system connecting Sydney, Perth and Singapore.

The Alphabet Inc. unit developed the INDIGO cable system in partnership with Aarnet Pty. Ltd., PT Indosat Tbk, Singtel, SubPartners Pty. Ltd and Telstra Corp. Ltd. to strengthen connectivity between Australia and parts of Southeast Asia.

The system sits on the sea bed between land-based telecom base stations. It will support Google's Asia-Pacific cloud customers, the company said.

"The future of the internet is in Asia, and Google continues to invest in subsea cables that serve the region," Rick Harshman, managing director for Google Cloud Asia-Pacific, told S&P Global Market Intelligence. He added that Google Cloud is in eight Asia-Pacific locations with two more to launch in Seoul and Jakarta in the first half of 2020.

The company, which has already invested US$47 billion in global infrastructure over the last three years, also announced last year that it is involved in the Japan-Guam-Australia cable system installation. Through the 7,080-kilometer undersea fiber optic cable system, users will gain access to low latency routes through key markets including Hong Kong, Australia and Singapore. It is expected to be ready in the first quarter of 2020.

INDIGO spans 9,200 kilometers and can support up to 36 terabits per second.

According to Ooi Seng Keat, Singtel's vice president of carrier services, group enterprises, the completion of INGIDO "will [also] accelerate the rollout of next-generation technologies that rely on low latency and high-bandwidth connectivity such as high-definition video, autonomous vehicles, internet of things and robotic applications."