C2C signs MOU with Telkom

C2C signs MOU with Telkom

SINGAPORE (AFP): Singapore-based telecommunications consortium C2C Pte. Ltd. said Thursday it had signed a memorandum of understanding with PT Telekomunikasi Indonesia (Telkom) to explore a joint venture.

Under the accord, PT Telkom will seek approval from the Indonesian government for C2C, a major undersea cable operator, to land its cable in Anyer, Java.

In exchange, PT Telkom will be offered the opportunity to purchase capacity on the C2C cable network and acquire a stake in C2C, the Singapore-based firm said in a statement.

"Indonesia is an important destination for the C2C cable network and C2C is glad to welcome PT Telkom ... as our strategic partner in the country," said C2C board director Lim Shyong.

Telephone and internet penetration is still low in Indonesia, Southeast Asia's largest country with a population of more than 200 million.

"We are convinced that this huge domestic market presents great potential for growth in Indonesia's telecommunications sector, which will lead strong demand for bandwidth," Lim said.

C2C is owned by a consortium of US and Asian telecommunications firms led by Singapore Telecommunications Ltd. PT Telkom is Indonesia's main telecommunications carrier.