Thai energy conglomerate Gulf Development and Singapore’s telecommunications group Singtel Group recently signed a Memorandum of Understanding (MOU) for a strategic partnership to develop new submarine cable connectivity between Thailand and Singapore, with their first joint venture being the Vietnam-Thailand-Singapore (VTS) Cable System.
Execution will be carried out through their respective subsidiaries, Advanced Info Service (AIS) and Singtel Singapore which bring together their respective expertise in infrastructure development and leadership in submarine cable infrastructure and services. The firms will also draw on their market expertise, connectivity capabilities and customer reach to support the development and commercialisation of the system.
The VTS Cable System is expected to be operational by 2030, with capital requirements spread out over multiple years, according to Gulf’s press release. The firms could also consider investing in terrestrial cable systems and other subsea cable systems in the future.
The partnership builds on Gulf and Singtel Group’s collaborations in Thailand across telecommunications and data centres providing a platform to pursue further opportunities across Southeast Asia.
Sarath Ratanavadi, Chief Executive Officer of Gulf Development, said, “This partnership with Singtel represents an important milestone in Gulf’s digital infrastructure strategy. Together, we are creating a platform that strengthens submarine cable connectivity between Thailand and Singapore while supporting Thailand’s ambition to become a leading digital and AI economy in Southeast Asia.”
Yuen Kuan Moon, Group Chief Executive Officer of Singtel, said, “Our partnership with Gulf brings together our expertise in digital infrastructure and submarine cable systems to meet the growing demand for cloud, AI, data centre and digital services. We look forward to deepening submarine cable links between our two countries and supporting the next phase of digital growth and innovation in the region.”