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Keppel Ltd., through its Connectivity Division, has signed a binding term sheet with a global telecommunications company for a 25-year Indefeasible Right of Use (IRU) on a fibre pair of the Bifrost subsea cable system.
Under the agreement, Keppel will grant long-term rights to a fibre pair on Bifrost. The definitive agreement is targeted for execution in the second quarter of 2026, with detailed IRU terms—including operations and maintenance services—currently being finalised by both parties.
Bifrost: A New Direct Digital Route Across the Pacific
Having achieved Ready-for-Service in October 2025, Bifrost is the world’s first subsea cable system to directly connect Singapore to the west coast of the United States via Indonesia, routing through the Java Sea and Celebes Sea.
The system lands in:
- Singapore
- Guam
- Grover Beach, California
Branching units extend connectivity to:
- Jakarta and Manado, Indonesia
- Davao, Philippines
- Winema, Oregon, USA
This architecture enables dynamic traffic routing and strengthens regional and transpacific interconnection resilience.
Strong Market Demand and Improved Commercial Terms
According to Keppel, interest in Bifrost has remained strong since completion, particularly from global telcos and cloud players, translating into improved pricing terms for the remaining fibre pairs.
Mr Manjot Singh Mann, CEO, Connectivity at Keppel, commented:
“Since the Bifrost’s completion, we have seen strong interest from global telcos and cloud players translating into improved pricing terms for this highly strategic asset. The signing of this binding term sheet marks a meaningful milestone as we continue our engagement on the remaining fibre pairs.”
He added that Bifrost highlights Keppel’s ability to originate, develop, and operate future-ready infrastructure that supports digital and AI-driven growth while delivering strong investor returns.
Performance, Capacity, and Technical Capabilities
Spanning over 20,000 kilometers, Bifrost is engineered to support:
- AI workloads
- Cloud-native platforms
- Real-time digital services
The system delivers a round-trip latency of just under 165 milliseconds between Singapore and the United States—up to 10 milliseconds faster than many existing transpacific systems.
By introducing more than 240 Tbps of additional capacity across the Pacific, Bifrost enhances the resilience of one of the world’s most heavily utilized digital corridors.
Since commencing commercial traffic flow in December 2025, each fibre pair has carried approximately 20% more traffic capacity than originally anticipated, according to Keppel.
Ownership Structure and Integrated Connectivity Strategy
Keppel’s fibre pairs in Bifrost are jointly owned with private fund co-investors through a 40–60 joint venture, reflecting a long-term infrastructure investment model.
Bifrost forms a key component of Keppel’s end-to-end connectivity ecosystem, which spans:
- Power and off-grid solutions
- Green energy and cooling
- Subsea cable connectivity
- Data centre solutions
Keppel noted that critical digital infrastructure assets like Bifrost enhance both the performance and reliability of its data centre offerings, positioning the company at the forefront of the global digital economy.
Beyond Bifrost, Keppel and its private funds—including the Keppel Infrastructure Fund—are exploring additional subsea cable developments across multiple geographies as part of a broader strategy to expand global connectivity and deliver risk-adjusted returns.
Keppel also confirmed that the transaction is not expected to have a material impact on the company’s net tangible asset per share or earnings per share for the current financial year.
What This Means for Digital Infrastructure Talent
From an industry and recruitment perspective, long-term IRU agreements on large-scale subsea assets continue to drive demand for specialists in:
- Subsea cable operations and maintenance
- Network engineering and capacity planning
- Digital infrastructure asset management
- Data centre and connectivity integration
- Long-term infrastructure investment management
As global telcos and cloud players lock in capacity for decades, subsea cable systems such as Bifrost are increasingly viewed as core digital infrastructure underpinning AI, cloud, and next-generation connectivity.
Blog Summary
Keppel has signed a binding term sheet granting a global telecom carrier a 25-year IRU for a fibre pair on the Bifrost subsea cable system. Ready for service since October 2025, Bifrost directly connects Singapore to the US West Coast via Indonesia, delivering low latency and over 240 Tbps of additional transpacific capacity. The agreement highlights strong market demand for long-term digital infrastructure assets.
Frequently Asked Questions
1. What is an IRU?
An Indefeasible Right of Use (IRU) provides long-term rights—typically 20 to 25 years—to use specific fibre capacity on a subsea cable system.
2. What makes Bifrost unique?
Bifrost is the first subsea cable system to directly link Singapore to the US West Coast via Indonesia, offering lower latency and enhanced routing diversity.
3. When did Bifrost enter service?
The system achieved Ready-for-Service in October 2025 and began carrying commercial traffic in December 2025.
4. How much capacity does Bifrost add?
Bifrost introduces over 240 Tbps of additional capacity across the Pacific.
5. Does the transaction impact Keppel’s financial results this year?
No. Keppel stated the transaction is not expected to have a material impact on current-year financial metrics.
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