Cable & Wireless Optus is working on a proposal for a new telecommunications cable system between Singapore and Sydney.
C&W Optus said it is working on a broad proposal with Telecom New Zealand and Singapore Telecommunications (SingTel) on a submarine cable linking Singapore, Jakarta and Perth.
The new cable connections could be made throughout Australia and the Asia-Pacific region via the carriers' existing cable networks, the company said.
Subject to board approval Optus data and business services managing director, Chris Hancock said it is a great proposal.
He said the Asian region is a large and rapidly expanding market for corporate and IP services.
"All three companies have identified a growing need for robust infrastructure between Australia and Asia," Hancock said.
SingTel executive vice president global business, Lim Shyong said the cable would be suitable for mission-critical data and high bandwidth applications.
"The three companies already carry significant traffic on this route and our capacity requirements will continue to expand," Shyong said.
"By committing to work together, SingTel, Telecom New Zealand and Optus can plan to meet demand for years to come."
The cable system would use dense wavelength division multiplexing (DWDM) technology and expand the capacity for streaming video, Internet traffic and other IP network-based applications.
SingTel has made a $17 billion takeover bid for C&W Optus which remains subject to Foreign Investment Review Board approval.
Last week C&W Optus reported a 60 per cent rise in full year net profit of $424 million.