OMS Group has announced the allocation of US$300 million for the expansion of its submarine cable systems and terrestrial infrastructure.
This investment comes in the wake of KKR's financial involvement with OMS Group in 2023 and is aimed at bolstering the company's telecommunications network, which serves various businesses and organisations.
The funds will be used to enhance the connectivity between important regions and to facilitate the growing adoption of digital technologies. Group CEO Ronnie Lim stated, "Our strategic investment is a direct response to the evolving demands of the global digital ecosystem. The explosive growth of data centres, cloud services and the high utilisation rates of existing cable systems have created an urgent need to expand our infrastructure."
He further added, "We aim to be a one-stop shop for client needs across subsea, Cable Landing Stations (CLS), and terrestrial networks, starting with the ASEAN region. This integrated approach will not only streamline access to our comprehensive services but also lay the groundwork for further expansion into the broader APAC market."
OMS Group will partner with telecommunications providers to improve essential infrastructure. The investment includes acquiring direct ownership of submarine cable systems and developing backhaul infrastructure from CLS to data centres. Rozaimy Rahman, CEO of Interconnect Managed Services, emphasised this point, noting, "Our expansion into direct asset ownership of submarine cable systems and CLS reflects our mission to enhance global connectivity, especially across Asia." He described the investment as aligning with the company's vision to grow the global telecommunications infrastructure network, thereby supporting the rising demand for data.
OMS Group has a substantial presence in the telecommunications sector, featuring a diverse fleet that includes cable ships, barges, and cable landing stations. One notable project under its investment ambit is Project MIST, an Intra-Asia subsea cable system that spans 8,100 km and has a capacity of 216TB. This system connects Malaysia, India, Singapore, and Thailand through landing points in Chennai and Mumbai. Additionally, LitUp Network, a subsidiary of OMS Group, has developed four CLSs and Network Support Facilities in Southeast Asia, including Malaysia, Indonesia, and Singapore. These facilities own dark fibres and licences to operate network facilities and infrastructure within these countries.
Datuk Lim Soon Foo, Chairman of OMS Group, highlighted the company's commitment to ongoing infrastructure development. He stated, "As we continue our journey at OMS Group, I am proud to highlight our ongoing investments in vessels, subsea networks through MIST, and robust terrestrial backhaul systems. These initiatives form a critical backbone for the region's digital economy and reinforce our commitment to comprehensive connectivity solutions." Lim noted that the expansion aims to ensure clients can rely on OMS Group's established capabilities and infrastructure as their needs evolve.
According to the company, the announcement underlines OMS Group's strategy to become a pivotal player in the global telecommunications infrastructure market. This latest investment is poised to consolidate its position in the sector and support the broader objective of enhancing digital connectivity and infrastructure in the Asia-Pacific region.
Source: https://datacenternews.asia/story/oms-group-invests-usd-300m-to-enhance-telecom-infrastructure