Japan's IPS to invest $131m in new Japan-Philippines-Singapore subsea cable

Japanese telecommunications company IPS announced on July 30 that its board has resolved to make a capital investment of $131 million in a new international submarine cable. The cable will connect Japan, the Philippines, and Singapore and is scheduled to be ready for commercial use in March 2028.

The company will participate in the joint construction of the cable as part of a consortium, which remains confidential. The investment will give IPS ownership of three fibre pairs on the main trunk of the new cable.

Concurrently, the company announced it has received a large order related to the project. A confidential customer has signed a 25-year indefeasible right of use (IRU) contract for partial usage rights of IPS's allocated ownership in the new cable. This agreement is valued at $45 million.

IPS stated that the new cable will establish a fundamental business asset, enabling it to broaden its telecommunications business in Asia. The project also represents the largest capital investment in the company's history. The company noted that the impact on its consolidated results for the fiscal year ending March 2026 is expected to be minimal.