Maldives signs with Indian company Reliance Jio on Monday to install a submarine cable in Maldives,
This is the first submarine cable the government is installing. The goal of the project is to lower the price of internet fees in Maldives.
The submarine cable will be connected to The Maldives-IAX (India Asia Express) in the Maldives. The project will be carried out by Ocean Connect, a subsidiary of Maldives Fund Management Corporation (MFMC).
At a ceremony held at Crossroads Maldives, the agreement was signed by Chairperson of Ocean Connect, Riyaz Mansoor, while President of Jio Matthew Oommen signed on behalf of his company. Economic Minister Fayyaz Ismail also attended the ceremony.
Ocean Connect estimates the cables will be connected by June 2023, and that IAS will be ready for service within another year.
Speaking at the ceremony, Minister Fayyaz said that the price of internet in Maldives is still high, and once the cable is installed they can provide internet service at lower prices. He noted this will open up the Maldivian economy up to various industries as well.
He said this would not be a competition for companies currently providing this service in Maldives. Three different companies already provide internet service in Maldives.
The submarine cable allow for Singapore to provide direct integrations to Europe without relying on third-party hubs. With this, companies providing internet services in the Maldives will be able to reduce the cost of using the cable.
Ocean Connect predicts this project will lower the cost consumers have to pay for internet services, while reducing the amount the government pays for the service by half as well. This will in turn double the internet capacity already provided.
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