Key Points
- After years of planning, the cable project is now entering the materialisation stage, Chile says.
- Australia's communication minister welcomed the potential for enhanced connectivity.
- There has been discussion of a number of fibre-optic projects to Asia in recent years.
The Chilean government announced a partnership with Alphabet's Google on to build the first undersea fibre-optic cable between South America and Asia Pacific.
The Humboldt Cable Project will connect Chile's port city of Valparaiso with Sydney, Australia through 14,800 kilometres of fibre-optic cable with a capacity of 144 terabytes and a 25-year lifespan, according to a government press release.
"This cable will consolidate Chile's position as the centre of digital activity in South America," President Gabriel Boric said during a press conference in Valparaiso.
He added that the project would "open opportunities for new industries, jobs and better work and life conditions for thousands of people."
The Chilean government has been working on plans for a direct fibre optic network link between South America and the Asia-Pacific region since 2016.
The planned network will span about 15,000km linking Valparaiso in Chile to Sydney in Australia, with connections to Easter Island, New Zealand, and Antarctica. Cost estimates range between A$673 million and A$973 million (US$450 million and US$650 million).
Australia's communication minister, Michelle Rowland, welcomed the project, saying it will improve communication infrastructure in the region.
"Australia welcomes this new trans-Pacific cable connecting Australia and Latin America for the first time, supporting the growth of digital and economic ties," she said in a statement.
The project aims to connect Chile and Australia, with branching units connecting to other locations such as Easter Island, New Zealand, and Antarctica. Credit: Google
The announcement comes at a time when China and the United States have been battling for economic and political influence in Latin America, with undersea cables being central the technology competition.
A Reuters investigation found that various undersea fibre-optic cable projects to Asia, including two in which Google was an investor, were originally supposed to link to China but were thwarted or re-routed due to US diplomatic pressure.
Aside from technology competition, US authorities worried about the possibility of spy agencies intercepting data on the planned undersea cables.
China President Xi Jinping touted his country's strong ties with Chile during a diplomatic visit last October, while US President Joe Biden pledged to strengthen economic ties with Latin America to counter China's growing influence.