Telstra and five other companies will build a new sub-sea cable network to boost connectivity between Australia and South East Asia.
The consortium, which also includes Google, Singtel, AARNET, Indosat Ooredoo and SubPartners, says it expects the new cable system to improve network connection speeds and reliability.
In a joint statement, the companies said they had struck an agreement with Alcatel Submarine Networks to build the cable system, with Telstra later saying the project was worth several hundred million dollars.
Given the rising usage of internet data, investing in international networks was "critical" to meet the needs of consumers and business, Telstra managing director of global services and international, David Burns, said in Thursday's statement.
Internet data consumption had jumped 70 per cent in Asia last year, he said.
The cable system will span about 9,000 kilometres and connect Singapore and Perth, and on to Sydney.
Within the system, there will be two additional fibre pairs connecting Singapore and Jakarta via a branching unit.
The new cable will land in existing facilities in Singapore, Australia, and Indonesia, according to the consortium.
The cable system is expected to be completed by mid-2019.
