Under the terms of the MoU, Indosat Ooredoo Hutchison and Inligo Network will enter into further discussions to build ACC-1 and once completed will support Indosat Ooredoo Hutchison's goal of becoming 'the most preferred digital telco of Indonesia'.
“This partnership allows Indosat Ooredoo Hutchison to be an exclusive partner for the Inligo Submarine network, providing high-capacity connectivity within Indonesia and the rest of the Pacific region, including the potential to reduce costs in developing advanced connectivity reaching the eastern part of Indonesia and expand our product portfolio in wholesale telecommunication services," said Desmond Cheung, chief technology officer of Indosat Ooredoo Hutchison.
"The partnership is also in line with our long-term commitment in accelerating Indonesia’s digital transformation agenda as we believe it must be underpinned by a sophisticated submarine cable system like the ACC-1.”
Once completed, ACC-1 will provide up to 128Tbps across its system, which will enable Indosat Ooredoo Hutchison to expand its network, particularly for eastern Indonesia, and increase network capacity for B2C and B2B services across the country.
The partnership between the two is aligned with the Government Regulation that requires a foreign company to partner with an Indonesian licensed telco company in order to establish an international submarine network across Indonesian territory.
“Indonesia has a great opportunity to become a digital powerhouse of Southeast Asia. Our collaboration with Indosat Ooredoo Hutchison will drive better connectivity and functionality within Indonesia, across Southeast Asia, and the Pacific region," said Brian Evans, chief executive officer of Inligo Networks.
"As a submarine cable network plays a vital part in connecting the Indonesian archipelagos, the partnership will increase data traffic, facilitate data transfer, internet access, and cloud storage which now become an integral part of increasingly digital society and digital nations.”
The ACC-1 project will begin construction in 2022, with the first leg of the route connecting Singapore, Batam, and Jakarta.
By mid-2023, the project will have constructed its leg from Medan, Makassar, Kupang, Dili in Timor Leste to Darwin in Australia, followed by the construction from Manado to Guam by the end of 2023.
The entire project is expected to be completed in 2024, connecting Guam to Los Angeles in the US.