Agreement for partnership with FSM Telecommunications Corp.

By Aurea Gerundio-Dizon
KOROR, Palau (Island Times, Aug. 11, 2011) – The Palau National Communications Corporation (PNCC) and Federated States of Micronesia (FSM) Telecommunications Corporation has entered into a memorandum of understanding (MOU) Tuesday at Fuji Restaurant in Koror to act jointly to acquire, deploy, manage, operate and maintain an underwater fiber-optic cable to the State of Yap and Palau.

[PIR editor’s note: Fiber optic cables have become an increasingly common technology in the Pacific. Samoa, Tahiti, Hawai’i, FSM, RMI, Tonga by the end of 2012, and other island groups have been connected to high-speed internet and information access within the last few years.]

The MOU establishes partnership between PNCC and FSM Telecom, known as Caroline Cable Consortium.

The principal place of business for the partnership will initially be at PNCC but may be changed from time to time.

The MOU disclosed that PNCC and FSM Telecom intend to pursue the acquisition of the existing cable owned by the Guam-Philippines (GP) Cable Limited Partnership, for which PNCC has tendered and is negotiating a proposal to purchase.

The MOU declares that the parties will contribute cash and property to the partnership, two-thirds by PNCC and one-third by FSM Telecom. It is expected that the total of respective contributions will be sufficient to purchase GP Cable. The contributions shall be made forthwith if the partnership is successful in negotiating the purchase of the GP cable.

The shares of the profits and losses of the partnership will be in the same ratio as the contributions to the capital of the GP Cable.

In July, through an Executive Order by President Toribiong, PNCC and the national government teamed up with the aim to provide broadband internet here.

The EO established a task force to advise and to assist him in acquiring the underwater fiber-optic cable.

Toribiong said that it is critical to Palau’s economic development to provide broadband internet connectivity to its citizens and residents, particularly for education and business purposes.

The task force is chaired by the president’s special assistant, Ngirabelas Tmetuchl, with Kevin Kirk, PNCC General Manager Richard Misech, House Speaker Noah Idechong or his designee and Senate President Mlib Tmetuchl or his designee as members.

Island Times:
Copyright © 2011 Island Times. All Rights Reserved

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