Search

DNeX strengthens market share in Indonesia’s submarine cable industry

Facebook
Twitter
WhatsApp
Telegram
Email

KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) has signed an agreement with PT Infrastruktur Telekomunikasi Indonesia (TelkomInfra) to supply installation and maintenance support services of submarine cable communications system via CS DNeX Pacific Link vessel.

In a statement today, the company said the agreement was inked via DNeX-led consortium formed between business units, PT DNeX Telco Indonesia (PT DTI), and PT Samudera Mbiantu Sesami (PT SMS) that would provide the services to TelkomInfra for a duration of three years, with an option to extend for a further three years.

It said the submarine cable communications system and maintenance support services would be supplied to TelkomInfra’s parent company, PT Telkom Indonesia Tbk, an Indonesian multinational telecommunications conglomerate which is listed on the Indonesia Stock Exchange and has a secondary listing on the New York Stock Exchange.

DNeX said with an assumption of 65 per cent vessel utilisation rate in a year, the estimated total revenue per year (including the standby charge) is about RM62 million (IDR215 billion).

“Thus, revenue for the initial three years of contract could reach up to RM186 million, and RM372 million with the additional three-year option,” it said.

Group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said the agreement marked a significant milestone for the group’s submarine cable business.

“It is expected to accelerate the segment’s growth and contribution to the group’s revenue, moving forward.

“The new contract could help propel the company to become a leading regional player in submarine cable laying, maintenance and repair works,” he said.

He added that major infrastructure developments by international technology giants, Facebook and Google, which include the construction of two new subsea cables connecting Indonesia and the United States, would present a new and attractive market opportunity for the group submarine cable business. – Bernama  

Download from Apple Store or Play Store.