National Telecom submits THB16.1 billion submarine cable proposal
Proposed links to Singapore, Europe and Japan would replace ageing cables and help handle rising traffic from artificial intelligence, cloud computing and hyperscale data centres.
- State-owned National Telecom (NT) has submitted a proposal for THB16.1 billion in government borrowing to build a new international submarine cable network.
- The budget is allocated for three main routes: THB6.6 billion for two systems to Singapore, THB4 billion for a system to Europe, and THB5.5 billion for a system to Japan.
- The project aims to replace ageing infrastructure and increase bandwidth to support rising data traffic from AI, cloud computing, and new hyperscale data centres.
- Planned for the 2027 fiscal year, the proposal is still in the preparatory stage, requiring partner selection, site surveys, and multiple government and environmental approvals before work can begin.
National Telecom Public Company Limited (NT), a state enterprise under the Ministry of Digital Economy and Society, has submitted a proposal to use THB16.1 billion from government borrowing to build an international submarine cable network, a Ministry of Finance source said.
The request is for funds under the 2026 emergency decree authorising the Finance Ministry to borrow to address the effects of the energy crisis and support the country’s energy transition.
The one-year project is planned for the 2027 fiscal year and would replace existing submarine cable infrastructure nearing the end of its service life.
The proposal divides the budget for the international submarine cable network into three parts.
- THB6.6 billion for two Thailand–Singapore submarine cable systems on separate routes.
- THB4 billion for one Thailand–Europe submarine cable system.
- THB5.5 billion for one Thailand–Japan submarine cable system.
NT stresses need for new cables to support data centres
NT cited the continued reliance on submarine cables for more than 95% of global internet data traffic.
It said Thailand’s cable systems were beginning to deteriorate with age and had too little bandwidth to handle rising data traffic from artificial intelligence (AI), cloud computing and the establishment of hyperscale data centres in the country.
NT described the shortfall as a bottleneck that weakens Thailand’s competitiveness.
The proposal linked the project to skills and innovation goals.
It said a fast, stable network would give Thai start-ups, researchers and businesses access to world-class high-performance computing systems to develop technologies such as self-driving vehicles, fintech and telemedicine.
The network would also create demand for highly skilled workers, including data engineers, data scientists and AI engineers.
NT said the project was still in preparation and could not begin immediately.
The company would need to secure new space for the work.
It could use its existing premises for cable landing station infrastructure, although the power systems and facilities would need upgrading.
There were still no design drawings or specifications.
Each cable-laying operation would require permission from the National Broadcasting and Telecommunications Commission (NBTC), the Department of National Parks, Wildlife and Plant Conservation, the Marine Department, the Department of Fisheries and the Thai Maritime Enforcement Command Center.
Preliminary environmental report required for routes through national parks
The proposal said the project would have environmental impacts and that a report was being prepared or submitted under the applicable procedures.
Any cable route passing through a national park would require an Initial Environmental Examination (IEE) report, as advised by the Department of National Parks, Wildlife and Plant Conservation.
NT said there was no feasibility study for the project yet, although its proposal set out the technical, market, economic and social rationale.
NT’s timetable starts with a search for partners, the formation of a consortium and site surveys from October to December 2026.
The company would select a contractor through an international tender for a turnkey contract in early 2027.
The timetable then lists contract signing and installation, followed by the network going live and being formally accepted.
September 2027 is the only month specified for that sequence.
The plan sets out payments of 10% on signing, 80% during installation and 10% on acceptance.
The monthly spending plan schedules the disbursement of THB6.6 billion for the Thailand–Singapore systems in June 2027.
A further THB9.5 billion is scheduled for September 2027, the final month of the fiscal year, with THB4 billion for the Thailand–Europe system and THB5.5 billion for the Thailand–Japan system.
The plan provides for no disbursements from October 2026 to May 2027.
NT said it was ready to manage the network once completed, as it already provides services through nine international submarine cable systems under its responsibility.
A committee with representation from the Ministry of Digital Economy and Society would be appointed to check that the project is conducted transparently, track progress towards signing with the consortium and assess the value of investment flowing into Thailand’s data centre sector three to five years after the network goes live.
