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FPT Telecom wants to spend 87 million USD to invest in undersea fiber optic cable

This is one of the contents that FPT Telecom Joint Stock Company (FPT Telecom) will consult the General Meeting of Shareholders for approval at the 2023 annual meeting on the morning of April 25.
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According to the report of this company, the total investment cost of the undersea fiber optic cable project is USD 87 million (about VND 2,000 billion). The investment value of the cable line is $58 million, the station building is $8.3 million, and the transmission equipment system is $20.5 million.

FPT Telecom plans to use 30% of its capital, equivalent to $26 million. The company will borrow the remaining 70%. The subsidiary of FPT Corporation estimates the rate of return at eight years and ten months. From now until the end of the year, this network operator will spend about 300 billion VND for the above submarine cable project.

The Asia Link Cable (ALC) route that FPT Telecom wants to join about 6,000 km long. The cable route currently has landing points in Hong Kong, Mainland China, the Philippines, Brunei, and Singapore, with a total capacity of 18 Tbps.

FPT Telecom said it would invest, install, manage, and operate the docking station in Da Nang by itself. The ALC cable route does not currently have any domestic network operators participating. According to SubmarineCable, the ALC undersea cable line owners include China Telecom, DITO Telecommunity, Globe Telecom, Singtel, and Unified National Networks.
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Previously, at the annual meeting of FPT Corporation earlier this month, CEO Nguyen Van Khoa also said that the focus of telecommunications investment this year is undersea fiber optic cable. According to this CEO, FPT will bring a different experience after investing in undersea fiber optic cable.

FPT leaders set this goal in the context that in the past, undersea fiber optic cable - the "blood vessel" of internet connection between Vietnam and the world has continuously malfunctioned. Even all five undersea cable routes to Vietnam have had problems since the end of last year, but none have returned to normal. At the same time, FPT does not have its undersea fiber optic cable.

Currently, VNPT and Viettel jointly operate three undersea cable routes AAE-1, AAG, and APG. In addition, VNPT also has a connection to the SMW3 line, while Viettel has the IA route.

All five cable routes that Vietnamese enterprises are investing in are part of telecommunications alliances managed by many countries and international carriers due to the specificity of the cables passing through the waters of many countries. Therefore, when the cable has a problem, domestic carriers cannot actively repair it. The repair task belongs to several businesses belonging to the alliance after obtaining permission to enter the country's waters - where the broken cable is located.
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From now to next year, Viettel will operate the ADC line. This will be an undersea fiber optic cable with the largest bandwidth ever entering Vietnam. With a length of 9,800 km, connecting with hubs in Japan and Singapore. Viettel participated in this project with big players in the industry, such as China Telecom, China Unicom, Singtel, Softbank, and Tata Communications. The total initial investment of the project is about 290 million USD.

Next year, VNPT is also expected to participate in operating the SJC2 route with a capacity of 18 Tbps, landing in Quy Nhon. This route connects two ADC analog hubs developed by China Mobile, Chunghwa Telecom, SK Broadband, Singtel, Telin, and True Corporation.

In the long term, the Ministry of Information and Communications will direct the construction of two new undersea fiber optic cables invested in and owned by domestic enterprises. This plan aims to help Vietnam reduce dependence on hubs like Singapore or Hong Kong.

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