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IT'S called Project Red Lion, and Brisbane telecommunications company Superloop (ASX: SLC) thinks it has the potential to roar through Singapore's business network.
The initial phase of investment in Red Lion has been approved by Superloop's board, an initiative that will extend the company's network to some of Singapore's most strategic commercial buildings.
Superloop CEO Daniel Abrahams (pictured) says Red Lion is the next logical expansion for the company, leveraging an existing core network operating between many of Singapore's largest data centres and cable landing stations.
It will provide a link to Singapore's high value CBD buildings and technology hubs.
"Project Red Lion will bring on-net buildings that accommodate some of the largest corporate and enterprise customers in the country," says Abrahams.
"The first phase of Red Lion will expand our network into more than 25 strategic commercial buildings that provide Superloop and its channel partners, as part of its upcoming channel partner program, with access to the regional headquarters of a number of multinational enterprises, among other potential customers."
The company is making an incremental capital investment for Red Lion of less than $2 million and will experience no material increase in operating costs. The additional capital investment will be funded from Superloop's existing cash reserves.
In more good news for the company's financial situation, it announced today that its contracted recurring revenues now exceed the direct monthly network operating costs once all its Singapore and Australia networks are provisioned.
Superloop has confirmed its expectation for these networks to be completed before the end of this year.
The company's share price opened at $2.19 and rose to $2.35 following the announcement, to then stabilise at $2.22.
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