Japan’s IPS increases capital in Singapore subsidiary to launch marine cable service
SINGAPORE, NNA - IPS Inc., a Japanese telecommunication firm, has decided to increase the capital of its wholly-owned subsidiary in Singapore as the company plans to start offering services using the submarine cables for which it has obtained the right to use.
Capital at IPS Telecommunication Singapore Pte. Ltd., which was established on June 5 this year, will increase to SG$2.8 million ($2 million) from SG$1,000 with IPS Inc. remaining the 100-percent shareholder. IPS plans to install telecommunication equipment using the increase in capital.
In May 2020, IPS acquired the indefeasible right of use (IRU) from Telstra International Ltd. for submarine cables, the City-to-City Cable System, between the Philippines and Hong Kong, and between the Philippines and Singapore. The term of the IRU is 15 years.
“The main customers are telecommunication providers in the Philippines. They have to connect to globally-offered services such as a cloud services and therefore there is a demand for connecting networks via Singapore or Hong Kong,” Tomoyuki Maeda, director of IPS Telecommunication Singapore, told NNA last Thursday.
Maeda said it will aim to get a license as a telecommunication operator in Singapore and start operations as early as August. The Singaporean subsidiary is expected to have five people by the end of this year and aims for annual sales of 400 million yen ($3.74 million).