Government takes possession of Samoa submarine cable

By Winston Qui, Talamua Online
January 20, 2022

The government has decided to take over ownership of the Samoa Submarine Cable Company (SSCC) as confirmed by Minister of Communications, Information and Technology (MCIT) Toelupe Poumulinuku Onesemo.

The submarine cable is currently owned by six shareholder entities, including four state-owned companies, Samoa Life Assurance Corporation (SLAC), Samoa National Provident Fund (SNPF), Unit Trust of Samoa (UTOS), Computer Services Limited (CSL) and service providers. Digicel Samoa and Vodafone Samoa.

The submarine cable was a $30 million investment established in April 2015 and government entities own 50% of the shares with others owning 50%.

According to the Minister, of the $30 million investment, $8 million was paid out in equity and $23 million was paid out in grants.

The project was set up to provide fast, reliable and affordable internet service costs to the market and consumers, however, Toelupe said this was not the case.

“The cost is not going down, but just going up,” Toelupe said. Talamua.

SSCC was one of the government-initiated projects, funded by the government, and then outsourced to the public-private partner (PPP) sector.

Toelupe believes that the submarine cable can be one of the ways to generate revenue for the government and maintain good public service.

The Minister also believes that income from the submarine cable can help offset some outstanding deals, such as the one with Samoa Digital Communication Limited (SDCL), which is a private company.

He also confirmed that the government would reclaim its shares from Digicel Samoa before Australian company Telstra took over.

“Once Vodafone also completes its deal, the government will have full management of the submarine cable,” he said.

With Internet connectivity now the most popular communication model in the world, the government is aware of the financial potential of cables.

SSCC manages and operates the Tui Samoa Cable which connects Apia and Suva, Fiji, with the main trunk to serve Wallis & Futuna and Vanualevu in the Fiji Group.

Manatua Cable, also known as One Polynesia Cable, runs from Moata’a, Samoa, with a fiber optic connection to Niue, Cook Islands, and Bora Bora, Tahiti.

Primary source