The World Bank is now consulting with governments and stakeholders in the Pacific region on the best way to connect them to an undersea Internet cable network. 

Senior ICT Policy Specialist for the World Bank Natasha Beschorner confirmed to Islands Business that the consultation is based on the recent findings of an independent study. 

Funded by the World Bank, the study was carried out by a French strategy consulting firm called Polyconseil. It explored ways in which Pacific islands countries could bring much-needed bandwidth to their economies. 

“The purpose of the study is to identify options for reducing the currently very high cost of international connectivity, and increasing the limited bandwidth available to Pacific islands countries, particularly the less developed states,” said Beschorner.

“This is to meet the rising demand for broadband Internet and its multiple potential applications in the region, and also to lower the overall cost of connectivity at the country level.

“The study is currently in draft for consultations and we have requested feedback from governments and telecom operators throughout the Pacific, plus organisations such as SPC (Secretariat of the Pacific Community), PITA (Pacific Islands Telecommunications Association) and PIFS (Pacific Islands Forum Secretariat), and development agencies including the UN (United Nations),” Beschorner added.

With a growing awareness in the region of the importance of Internet to drive local economies, just how to get this now basic commodity is said to be among the Pacific’s crucial questions this century. Currently, a few Pacific countries are getting Internet via submarine cables while the majority maintain international connections via satellite.

With expectations that the Internet-driven future economy will see an increase in local Internet demand for everyone, moves are already underway in the Pacific to explore international connectivity via submarine Internet cables, considered to be more cost effective.

The Polyconseil study provides for the first time just how the scattered island nations in the region can achieve this as well as the kind of costs associated with it.

“We’re intending to finalise the study by the end of the year (2008),” said Beschorner.

“The report will summarise options/recommendations for countries which could include, depending on their particular circumstances and demand:

(a) stick with satellite connectivity;

(b) point-to-point submarine cable links;

(c) sub-regional, or;

(d) regional submarine cable links.

Our recommendation would be that whichever option is chosen by the Pacific countries (individual and/or sub-regional basis), that the costs be borne primarily by the private sector, not governments.

Governments—with or without additional external financing if needed—could contribute incrementally if they wish, based on their own funding priorities. 

For example, to facilitate construction, purchasing of capacity, etc,” said Beschorner.

“However, governments are advised to put in place regulatory measures to ensure the international gateways are liberalised and that access to this infrastructure is on a fair and transparent basis.”

Should governments in the Pacific decide on a sub-regional or regional cable network project, Beschoner said the World Bank would be willing to help them. organise it through a private-public partnership model.

“The World Bank is involved in other international connectivity projects, for example the Regional Communications Infrastructure project in Africa,” she said.

“We know from experience with regional projects in Africa and the Caribbean that when countries/operators cooperate in these areas, they may have leverage on pricing, organisation, etc.”

It is expected that Pacific islands countries will be looking through the Polyconseil study during the meeting of Pacific ICT ministers, organised by the International Telecommunications Union and scheduled for Tonga in February.

The Polyconseil study organises countries in the Pacific as:

• Low demand countries, or countries for which satellite will remain the most economical option for international connectivity for many years to come.

They include Cook Islands, Niue, Wallis & Futuna, and islands of the Northern Pacific—Palau, Marshall Islands, Kiribati and Federated States of Micronesia;

• Medium demand countries, or countries in which technical solutions other than satellites (i.e. submarine cable) will become more economical within less than five years because of their growing needs for international connectivity.

These countries are Timor Leste, Samoa, Solomon Islands, Vanuatu, Tonga and American Samoa.

• High demand countries, for which “a submarine cable solution is already by far the most economical solution. These countries are Fiji, French Polynesia, New Caledonia and Papua New Guinea.

With low demand countries already on satellites and high demand countries already on cables, the issue of connectivity is far more crucial for the medium demand countries, as they are all still linking internationally via satellites.

The Polyconseil study identifies three cable connection options for these medium demand countries: either they do a point-to-point submarine cable connection, where a Pacific country connects directly to the nearest place where there is cheaper bandwidth to be bought (called a backhauling point), for example Tonga connecting to Fiji to benefit from the Southern Cross Cable network prices; a subregional submarine cables network, where several Pacific islands countries connect together to a backhauling point; or a regional or trans-pacific submarine cables which would both connect countries to a backhauling point and also carry their traffic, allowing for better return on investment.

The trans-pacific model, an example of which is the ongoing South Pacific Islands Network (SPIN), is considered to be the best option.