In January 2004, C2C Pte Ltd, the operator of the C2C cable network in South East Asia, announced that, in cooperation with its majority shareholder SingTel, it has reached agreement on a financial restructuring of its US$650 million credit facility.
The 17,000km pan-Asian C2C cable network is self-healing and fully diversified, linking China, Hong Kong, Japan, Korea, Philippines, Singapore and Taiwan, with direct connectivity to the US via C2C’s own trans-Pacific link. The network claims a reputation for its quality and reliability. The operator’s round-the-clock network management and maintenance service is provided through its Network Operations Centres located in Singapore and Hong Kong.
The proposed financial restructuring is designed to provide C2C with flexibility to compete effectively and to position itself for long-term growth. Upon finalisation of the restructuring, C2C will also receive additional funding of US$225 million from SingTel and certain other shareholders. C2C’s business model is built around partnerships with its customers, many of which are telecommunications carriers.
The company claims to have made significant progress in managing its costs and instituting greater financial discipline to strengthen its business. Some of the measures taken include renegotiating property and backhaul leases, as well as controlling administrative expenses, operating and maintenance costs.
The resilience of the C2C cable network was demonstrated during the earthquake in North Asia in late 2003 which affected a number of other cable systems for more than a week. The operator received many requests from carriers to provide them with restoration services on the C2C cable network in order to minimise disruption to their telecommunication services.