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Vocus OKs submarine cable project

AAP logoAAP 5/12/2016

Vocus Communications will pay about $US170 million ($A227 million) to construct a 4,600km submarine cable linking Australia to Singapore and Indonesia.

Australia's fourth biggest telecommunications group says it has contracted Alcatel Submarine Networks to build the cable, with completion forecast by August 2018.

Vocus, whose shares opened nearly two per cent higher, says it will fund construction from its existing debt facility, operating cash flow and $US100 million of pre-payments it expects from customers wanting to use it.

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