OMS Group allocates US$300 mil for investments in Global Cable Systems and Terrestrial Infrastructure

• The capital allocation comes in the wake of KKR's investment in OMS in 2023
• Will partner to enhance infra, convert capex into sustainable operating expenses

OMS Group, a global leader in integrated telecommunications infrastructure solutions, announced that it has set aside US$300 million (RM1.25 billion) for investments to expand its submarine cable systems and terrestrial infrastructure. This capital allocation follows KKR’s investment in OMS Group in 2023, the company stated.

The allocation will enable the group to further develop its network and provide businesses and organisations with essential connectivity infrastructure. By expanding its submarine cable systems and terrestrial infrastructure, the company aims to enhance connectivity between critical regions and support the increasing adoption of digital technologies.

Ronnie Lim, group CEO at OMS Group, said, “Our investment is a direct response to the evolving demands of the global digital ecosystem. The growth of data centres, cloud services, and the high utilisation rates of existing cable systems have created an urgent need to expand our infrastructure. As part of this vision, we aim to be a one-stop shop for client needs across subsea, Cable Landing Stations (CLS), and terrestrial networks, starting with the Asean region.”

“This integrated approach will not only streamline access to our comprehensive services but also lay the groundwork for further expansion into the broader APAC market, ensuring that we meet the diverse and growing demands of our clients in this dynamic landscape,” he added.

OMS Group will collaborate with telecommunications providers to advance essential infrastructure, using its long-term investment capital to help them transition capital expenditures into sustainable operating expenses. This partnership positions the group to deliver scalable submarine cable solutions and a robust digital backbone crucial for regional digital transformation. The investment includes acquiring direct ownership of submarine cable systems and developing backhaul infrastructure from CLS to data centres, further enhancing its ‘platformisation’ strategy.

"Our expansion into direct asset ownership of submarine cable systems and CLS reflects our mission to enhance global connectivity, especially across Asia. This investment aligns with our vision to grow the global telecommunications infrastructure network and support the ever-increasing demand for data. By integrating terrestrial backhaul into our portfolio, we aim to provide a holistic solution that strengthens our role in the evolving telecommunications landscape," said Rozaimy Rahman, CEO of Interconnect Managed Services.

OMS Group is one of the largest independent operators in this sector, with a diverse fleet that includes cable ships, barges, and cable landing stations serving the global telecommunications market. The group’s investments include Project MIST, an intra-Asia subsea cable system spanning 8,100 km with a 216 TB capacity, connecting Malaysia, India, Singapore, and Thailand through landing points in Chennai and Mumbai. Additionally, LitUp Network, a subsidiary of OMS Group, has developed four CLSs and network support facilities in Southeast Asia, including Malaysia, Indonesia, and Singapore, owning dark fibers and licenses to operate network facilities and infrastructure in these countries.

“As we continue our journey at OMS Group, I am proud to highlight our ongoing investments in vessels, subsea networks through MIST, and robust terrestrial backhaul systems. These initiatives form a critical backbone for the region's digital economy and reinforce our commitment to comprehensive connectivity solutions. This expansion showcases our established capabilities, ensuring our clients can rely on our proven experience and infrastructure as we grow to meet their evolving needs,” said Lim Soon Foo, chairman of OMS Group.