Myanmar: Campana raising $60m debt & equity for sub-sea cable network to Singapore

Singapore-based Campana Group – which operates international terrestrial and submarine telecom network across Myanmar, Thailand, and Singapore – is raising $60 million for infrastructure development including the construction of Singapore Myanmar Cable Network (SIGMA), a top executive from told DEALSTREETASIA.

The additional investment of $60 million will be raised through both equity and debt, said Myo Ohn, founder and CEO of Campana Group.

So far, the group has raised $20 million from two public companies from Thailand, and one from Singapore, counting in Thailand’s Advanced Information Technology Public Co Ltd and Loxley Public Co Ltd among its investors. “We plan to go public by the next two years, either in Hong Kong or Singapore market,” said Ohn.

The SIGMA submarine cable line will be in addition to the TARO fiber cable that Campana has completed. TARO operates a cross border terrestrial route from Yangon to Thailand via Htee Kee at Dawei, the south eastern city of Myanmar.

The SIGMA network spans 3700km across Myanmar, Thailand and all the way to Singapore through a sub sea route.

The proceeds will be used for the infrastructure development of a 2,350 km-long network which the firm targets to complete by mid-2019.

Campana announced the commercial availability of the International Gateway Services in Yangon since December 2017 and has already offered wholesale data services including IP transit and International Private Leased Circuites (IPLC), which internet service providers and mobile operators could buy to get a direct connection from Yangon to Bangkok or to Singapore.

The group intends to become the leading provider of wholesale international transport and IP transit services between Myanmar and the rest of the world.

“For us, everything is On-Net,” said Ohn. Campana prides itself as the first regional operator, with swifter and cheaper internet connection to be provided due to operating on a single network.

Their operations in Myanmar is handled under Campana MYTHIC Co Ltd, a joint venture of Campana Group Pte Ltd.

The group has also completed a data center (to date with 50 racks) for the International Gateway facility in Thanlyin, and has established a Yangon Metro Network to transport connectivity across major connection spots across Yangon Region.

Campana MYTHIC will operate 15 nodes in Myanmar out of a total of 40 nodes (with Thailand and Singapore inclusive) managed by the various subsidiaries of Campana Group.

“From our Thanlyin facility, we are going to scale up and provide cloud services to businesses. So that would involve anything as platform-as-a-service, infrastructure-as-a-service and we are able to host media and content,” said Ohn.

Supplying data demand for the long term

The SIGMA cable will power up the telecom revolution seen in the past few years in Myanmar.

Myanmar’s telecom sector saw notable developments since 2013 after international telecom operators were granted a license to operate in Myanmar.

Current links that Myanmar has connected to the worldwide are sub-sea cable known as SEA-ME-WE 3, a terrestrial link to Thailand, and to China.

Meanwhile, Myanmar’s data demand is said to be around 300 Gigabits per second (Gbps) while the Campana’s TARO cable is now able to provide up to 8000 Gbps. After the completion of SIGMA cable, it can provide 32,000 Gbps, said Ohn.

“We can carry a lot of capacity…far more than what Myanmar needs right now,” he said.

Myanmar also has other fibre optic cables, SMW5, AAE1 linking to India, Africa and all the way to Europe that connects from the Ayeyarwaddy Region. There is also an Indo-Myanmar link, which started activation in late 2016, whose investments came from Bharti Airtel, one of the leading phone companies in the world.

Other telecom operators, Telenor and Ooredoo have set up international fibre links to Thailand and China.

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