KOROR, Palau -- Palau Telecoms, a supplier of wireless broadband internet services, has signed a Letter of Intent (LOI) with Xtera Communications, Inc. for the turnkey supply and installation of the submarine cable system that will connect Palau to Guam.
This agreement is a key milestone for Palau Telecoms’ strategy. Under the terms of the agreement, Xtera will design and install the Palau Telecoms system using their innovative subsea optical plant and submarine line terminal equipment. The system will provide high capacity fiber optic connectivity to Guam, enabling connectivity to the US Mainland, the Asia Pacific region, Australia and New Zealand via interconnects with existing and planned submarine cable systems.
The objective of the investment in this optical communication infrastructure is to supplement the satellite infrastructure that currently serves Palau. Switching from satellite to optical infrastructure will increase the capacity, enhance the availability and reduce the latency of the network, improving the quality and stability of services. Also, the new optical transmission infrastructure will make it possible to offer fixed-line and wireless data services to consumers in the region at more competitive prices.
Palau Telecoms is currently in discussions with the Government of Palau to invite the State of Yap, Federated States of Micronesia to consider connecting into this project.
The Palau Telecoms cable system is planned for completion in mid-2015.
Xtera Communications Inc. (Nasdaq: XCOM)