Internet network planned for eight Asian economies

TOKYO (AFP): Japan's Sumitomo Corp. and three other companies will establish an Internet telecommunications network directly linking eight nations and territories in Asia, a Sumitomo spokesman said yesterday.

The network will create an international web of computer networks with an Asian hub, realizing high-speed, large-capacity commercial data communications, he said.

At present, Asian Internet users have to use U.S circuits even when they want to contact neighboring countries.

Sumitomo, a major trading house, plans to set up a company in Tokyo in mid-November for the new services with three Internet providers -- Internet Initiative Japan Inc., Pacific Internet Pte Ltd. of Singapore, and Super Net of Hong Kong.

The new firm, Asian Internet Backbone Co. (A-Bone), will be capitalized at 600 million yen (US$6 million), of which the four partners will put up 25 percent each.

The companies exchanged memorandums to this effect in Singapore earlier this month, the spokesman said.

The new network will link Hong Kong, Indonesia, Japan, Malaysia, Singapore, South Korea, Taiwan and Thailand.

The new company plans to set up the Internet linkage among Hong Kong, Japan and Singapore by the end of the year and expand it to the other regions by the end of 1996 with extra investment.

With the completion of the A-Bone network, companies will be able to exchange design, manufacturing, marketing and other data with lower costs.

Demand for international "electronics commerce" is expected to grow with telecommunications infrastructure improving, Internet Initiative said.

In Singapore, Pacific Internet said the Pan Asian network will work with regional Internet service providers to offer reliable and secured communications for multinational companies.

"Many multinational corporations operating in Asia are looking upon the Internet as the platform on which to build their own private networks linking offices, factories and staff all over Asia and the world," it said.

The joint venture, aiming to evolve into a "broadly owned Asian company," will invite investments from multinationals and Internet service providers, the Singapore partner said.