Singtel signs MOUs with Telkom on regional data centres, fixed broadband business

MAINBOARD-LISTED telco Singtel Z74 said on Thursday (Apr 14) that it has signed 2 memoranda of understanding (MOUs) with its Indonesian partner Telkom to collaborate regionally in the data centre and fixed broadband segments.

Under the first MOU, Singtel will collaborate with Telkom, which is also the parent company of Singtel's regional associate Telkomsel, to build and acquire data centres in the region.

"As strategic partners for over two decades, this move into data centres expands on the close collaboration between Singtel and Telkom to build out Indonesia's mobile communications and digital infrastructure," Singtel said.

Singtel chief executive Yuen Kuan Moon noted that the company's planned data centre platform would support the digital-transformation needs of customers who want to deploy in Indonesia, as well as Indonesian businesses looking to grow beyond the country.

The company signed a similar MOU with Thai power and infrastructure company Gulf Energy to build and develop data centres last October.

Under the second MOU, Singtel and Telkom will jointly explore the integration of Telkomsel's mobile business with Telkom's fixed broadband business.

"By combining the strengths of the two companies, Telkomsel will be able to enjoy significant synergies and enhance its leading position in the market with converged solutions that will give customers the best digital experience," Singtel said.

Singtel shares closed down 0.8 per cent or S$0.02 at S$2.61 on Thursday, before the announcement was made.