Mastering submarine cable management in the Pacific

As access to the global internet becomes ever more essential to all aspects of business, government, education, health and social life, it is crucial for Pacific nations to establish direct and efficient international connectivity through submarine cables. These connections serve as vital infrastructure, ensuring reliable high-speed access to global networks, which supports economic growth, development, and digital inclusion across the region. Their ongoing efficient operations require specialised expertise at both the technical and senior management levels. However, securing these skills locally has often proved challenging. In some cases, Pacific Island Countries (PICs) bring in experienced expatriates to train local successors, while others support their local leadership teams with external specialist assistance.

To effectively oversee a submarine cable system, management must have a clear understanding of domestic market challenges to best support their retail service provider clients. Additionally, they should stay informed about regional issues, industry developments affecting the submarine cable sector, and maintain a network of professionals with shared expertise and goals.

This also extends to stakeholder management, as management will inevitably be dealing with the often conflicting expectations of government, shareholders, retail service providers and funding agencies. Most cable projects in the Pacific are funded by one or more Multi-National Development Banks (MNDBs) or similar, that require very specific reporting, pricing management and the delivery of economic and social benefit to the community, which places a heavy onus on management to both track and deliver against these expectations.

Planning & managing the business

A key guiding document for all stakeholders and managers of submarine cables is the Business Plan, which must encompass all the elements of running a submarine cable system. The development and implementation of this document is critical to success. The Business Plan includes the financial aspects; ensuring the wholesale pricing of capacity meets both the need for adequate revenues but also maintains competitiveness with alternatives and delivers on social and development goals. This is particularly relevant now that LEO satellites can provide low-cost connectivity that, unless it is carefully managed, can create many undesirable side-effects for the country. MNDBs tend to place emphasis on this, together with minimising the cost of capacity, while also meeting financial expectations of all stakeholders and managing competitive pressures – a fine balancing act.

Another important aspect to consider in today’s connected world is the increasing involvement of major OTT players like Google, Meta, and Amazon in Pacific submarine cables. It is essential for PICs to be equipped to handle their expectations and strategies effectively. Navigating partnerships with these hyperscalers requires comprehensive expertise to protect national interests and maximize potential benefits. At the same time, entrepreneurs are exploring opportunities to develop new cables to meet the rising demand fuelled by AI advancements. PIC leaders face pivotal decisions to ensure these developments align with their countries’ priorities.

Successfully managing a submarine cable company continues to be a significant challenge for Pacific nations.

Operational support

Implementing a project is only the beginning; once the Ready for Service (RFS) milestone is reached, the focus shifts to ongoing operations, including maintenance and upgrades. This encompasses managing equipment operations and handling commercial agreements with customers. From a maintenance perspective, it involves coordinating with marine maintenance providers and ensuring that marine and terminal equipment spares are readily available and up-to-date. Upgrades are mini versions of submarine cable implementation projects. Access to experienced support, guidance, or advice can be invaluable in navigating these complexities effectively!

The good news for the region is that help is available! Companies like Pacific Cables Management (PCM) provide a focus of support at the C-level (CEO, CFO, COO, CTO, CMO), aiding management with strategy, planning, operations, and commercial components. One of the first adopters of such an approach has been the Belau Submarine Cable Corporation (BSCC) in Palau. The approach has led to significantly lower costs for BSCC and has helped maintain the effectiveness of the cable company as they transitioned from an overseas CEO to a local executive.

From vision to victory

For both Governments and Submarine Cable companies alike, developing and sustaining a cable system requires extensive technical proficiency, meticulous planning, and practical experience. The early years are particularly demanding, as installation, troubleshooting, and network optimization call for advanced skills to prevent inefficiencies and maintain seamless functionality. Without sufficient expertise, navigating obstacles such as regulatory compliance, competitive pressures, strategic technology choices, MNDB expectation management, and the creation of a robust business plan can become daunting. This underscores the critical role of experienced professionals in ensuring long-term stability, connectivity, and success.