The government of Maldives has revealed that Ocean Connect Maldives (OCM), a 100% government-owned subsidiary of Maldives Fund Management Corporation (MFMC) will lead the country into a new digital age with the first ever direct connection to an International Submarine Cable System in the Maldives.
OCM has signed an agreement with Reliance Jio Infocomm Limited to connect to the India-Asia-Xpress (IAX) submarine cable providing international gateway connections to the East and the West, enabling direct integrations from Singapore to Europe while foregoing existing reliance on third-party hubs such as Sri Lanka. The agreement was signed between the chairperson of Mr. Riyaz Mansoor, the Chairperson of OCM and Mr. Mathew Oommen, the President & Board Director of Reliance Jio Infocomm Limited, at an event held at Crossroads Maldives this Monday morning. The cable is estimated to land in the Maldives by June 2023.
The project will serve as a catalyst for rapid digital transformation in the Maldives to strengthen the digital backbone of the nation. This initiative shows great promise with potential to lay the foundation for a new digital infrastructure in the Maldives which will support explosive growth in digital products, services and data consumption; providing the highest quality, reliable gateway internet access at the low costs expected by the modern-day consumer. The company will work together with local ISPs, providing wholesale internet to them at better prices than existing internet capacity purchase solutions. Cheaper high-speed internet services will heighten the possibilities of innovation for our capable and tech savvy youth. This is a vital and a necessary step to kickstart a digital economy in the Maldives, that meets the demands of business and consumers alike.
The project will result in sharply reduced annual operational expenditure on data and internet for the Government, while doubling the current internet capacity at the same time. The new fibre optic cable system is further anticipated to significantly reduce internet gateway vulnerabilities for a more reliable and resilient gateway infrastructure. This innovative new venture will encourage digital innovation and create a conducive environment for businesses to thrive in a digital economy, providing valuable opportunities for underserved segments of the Maldives population to benefit from increased internet connectivity, in line with the ICT policies of the Strategic Action Plan. OCM has concrete plans to capitalize on the new post-COVID digital landscape by entering into exciting, untapped economic avenues such as building data centers and exporting data, creating new and sustainable new export products for the Maldives to diversify away from tourism.
MFMC is a 100% state owned company, with a mandate of fulfilling national development goals through increased private sector investment and addressing limitations in the local financial system. The company seeks to support sustainable economic transformation via innovative capital market solutions catering to the financing needs of the Maldivian economy, while embracing social and environmental responsibilities. MFMC is actively involved and is a key partner for the implementation of projects specifically earmarked to creating a more diversified economy in the Maldives.
(PR)
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