Partnership Overview
Singtel and Thailand’s Gulf Development announced a partnership to develop new submarine cable connectivity between Thailand and Singapore, with the first project being the Vietnam‑Thailand‑Singapore (VTS) Cable System. The collaboration combines Gulf’s infrastructure and digital businesses with Singtel’s subsea cable expertise, and will involve Gulf’s Thai telecom associate Advanced Info Service (AIS) leveraging its connectivity capabilities and customer base to support development and commercialisation of the VTS system.
Project Timeline and Investment
The VTS cable is expected to become operational by 2030, with capital spending spread over several years. The parties did not disclose the size of the investment, the ownership structure of the assets, or the expected returns from the project.
Strategic Rationale
Both companies cite rising demand for cloud computing, artificial intelligence and data‑centre services across Southeast Asia as the driver for the high‑capacity connectivity. Singtel’s Digital InfraCo business, which includes its submarine cable network, the regional data‑centre arm Nxera and the GPU‑as‑a‑service platform RE:AI, is positioning the new cable as part of its response to growing AI and cloud workloads that require large volumes of data to move reliably between data centres, enterprises and hyperscalers. Singtel’s annual report describes its submarine network as a backbone for global data flows, connecting Singapore to more than 100 countries.
Market Reaction
Following the announcement, Singtel shares fell 0.7% to S$4.53 in late Singapore trading, broadly in line with the Straits Times Index, which was down 0.4%.
Historical Context
The partnership builds on an existing relationship; in June, Singtel sold a 2.8% stake in Gulf Development for approximately S$1 billion as part of its asset‑recycling programme.