C2C, the undersea-cable subsidiary of Singapore Telecommunication (SingTel), was on target to achieve positive cash flow by early 2003, despite bandwidth over-capacity in the region, according to chief executive Lim Shyong. The cable operator, which completed the northern loop of its US$2.1 billion network yesterday, said it would break even despite having sold less than half of the capacity. 'Currently, we have pre-sold about one-eighth of our network's capacity,' said Mr Lim, celebrating the first year anniversary of building a Pan-Asian network. 'But we expect more sales to come as we get closer to completing the whole network.' C2C is a 17,000 cable network with a capacity of 7.68 terabits per second, and links six northern Asia-Pacific countries, including China and Hong Kong. The second phase of the southern loop linking Hong Kong, the Philippines and Singapore was expected to be completed by the end of this month. Mr Lim said the network development had been fully funded. Earlier this year, the company secured US$700 million in project financing. Pre-sale of bandwidth has also brought in US$710 million, while shareholders have contributed US$550 million in equity. SingTel owns 59 per cent of C2C, with United States company Tycom owning 15 per cent. Other shareholders, including Sunevision's iAdvantage, each own less than 5 per cent. Mr Lim said C2C was better positioned than some of its competitors in the region. International undersea cable operators such as Level 3 had delayed or cancelled their projects. However, C2C would not take part in a possible industry consolidation, according to Mr Lim. He said it did not make strategic sense for the company, which preferred to build, rather than buy, its network. Tremendous growth potential for the C2C network could come from China, where the company landed the first private cable in Nanhui, Shanghai, with China NetCom in July. Mr Lim said the arrangement with China NetCom enabled the company to provide direct access to the mainland. C2C was responsible for the external network, while China NetCom was responsible for internal sales. China NetCom also had a similar arrangement with Asia Global Crossing but Mr Lim said C2C had a direct link in China, whereas Asia Global Crossing had to connect via Hong Kong.