Singtel and Telkom collaborate on regional data centres and fixed broadband

Singtel and Telkom have signed memoranda of understanding (MOU) to collaborate on regional data centres and a fixed mobile convergence strategy in Indonesia.

The Singapore telco is focusing on establishing a data centre platform to tap the growing Asean market. Leading the growth are Singapore and Indonesia, which are expected to double in size and account for more than 60 percent of regional growth by 2025. Singtel intends to work with partners such as Telkom to build and acquire data centres in the region.

“Telkom Group is currently consolidating our data centre business to answer the challenges of digital transformation. The regional data centre platform is a continuation of this data centre consolidation strategy and demonstrates our commitment to respond to customer needs and capture opportunities that will pave the way for our company to become a data centre player on a global level,” said Ririek Adriansyah, CEO of Telkom.

“This partnership with Telkom is an important step for our data centre strategy, bringing together the prime assets, expertise and networks of two market leaders in data centre operations in Indonesia and Singapore. We look forward to deepening our longstanding collaboration with Telkom to capitalise on the favourable trends and tremendous market opportunity,” said Yuen Kuan Moon, CEO of Singtel Group.

Besides Indonesia, Singtel is also eyeing the Thai data centre market. In February, it signed a joint development agreement with Gulf Energy and Singtel’s regional associate AIS to start developing data centres in Thailand. The new joint venture will be launched soon.

Singtel and Telkom will also jointly explore a fixed mobile convergence strategy for Telkomsel which will see an integration of its mobile business with Telkom’s consumer fixed broadband business.

By combining the strengths of the two companies, Telkomsel will be able to enjoy significant synergies and provide converged solutions for customers.

Photo: Manuel Geissinger