Keppel has signed a binding term sheet with an unnamed global telco for the "indefeasible right of use" of a fibre pair in its Bifrost Cable System for 25 years.
Detailed terms of the IRU, including operations and maintenance services, are being finalised by the parties. They aim to sign the definitive agreement in 2Q 2026.
Since last October, Bifrost has been ready for service. This subsea cable system is the first to have a direct link between Singapore and the US west coast via Indonesia.
Bifrost, which spans some 20,000 km, lands in Singapore, Guam, and Grover Beach, California, with branching units extending connectivity to Jakarta and Manado in Indonesia, Davao in the Philippines, and Winema, Oregon in the USA. The multiple points allow for dynamic traffic routing and robust regional interconnection.
Manjot Singh Mann, CEO, Connectivity of Keppel, says that since the completion of Bifrost, the company has seen "strong interest" from telcos and cloud computing providers, which has led to "improved pricing terms" for this asset.
"The signing of this binding term sheet marks a meaningful milestone as we continue our engagement on the remaining fibre pairs.
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"As a critical subsea cable charting a new route across the Pacific, Bifrost underscores Keppel’s track record as a global asset manager and operator with the ability to originate, develop and operate future-ready infrastructure that not only supports the next phase of digital and AI-driven growth but also delivers strong returns to our investors," he adds.
Since commencing commercial traffic flow last December, Bifrost has delivered strong performance with each fibre pair carrying approximately 20% more traffic capacity than originally anticipated.
Keppel’s fibre pairs in Bifrost are jointly owned by Keppel and its private fund co-investors through a 40-60 joint venture.
Keppel shares closed at $10.89 on Jan 22, up 1.49% for the day and up more than 60% in the past year.
