Telekom to Build 400-Km Cable System With XL, Mora

Telekom Malaysia Bhd., a state- controlled telecommunications provider, signed an agreement with Indonesia’s PT XL Axiata and PT Mora Telematika to jointly build a 400-kilometer submarine cable system between the two countries. 

Telekom Malaysia is investing $4 million in the project, which is expected to start operations by the fourth quarter of this year, Executive Vice President Rozaimy Rahman told reporters after the signing ceremony in Kuala Lumpur today. 

“The design of this cable system has taken into consideration current and future high capacity requirements for next generation Internet applications,” he said. 

Telekom Malaysia shares fell 0.5 percent to 3.86 ringgit in Kuala Lumpur trading at 4:52 p.m. local time. XL Axiata is the Indonesian unit of Axiata Group Bhd., Malaysia’s second-biggest mobile-phone operator. Source: Bloomberg