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Governor Togiola explains that AS only has one-third ownership
of fiber optic cable
Governor Togiola Tulafono has made it clear that the American Samoa Government does not have sole ownership of the highly anticipated undersea fiber optic cable expected to be in operation in early 2009 but instead, ASG only has one-third ownership.
The Governor explained that ASG’s share in the project was only $9 million and any profits will have to be split amongst the parties involved, ASG included.
In addition to ASG, the other parties involved in the Pacific Rim fiber optic cable deal are Telecom New Zealand(TNZ), Merchant Capital, an investment and merchant banking company based in Alabama, and Elandia Incorporated, the parent company of Blue Sky Communications.
Togiola explained that during initial talks about cable connection, the estimated dollar amount to make it happen was quoted at $18-$20 million and in the end, according to the Governor, the total price would probably have cost around $30 million.
However, ASG offered $9 million for one-third ownership to the other parties and the deal was accepted, and an agreement has already been signed.
Togiola said that ASG will not pay more than $9 million for the fiber optic cable. To date, the government has already secured payment for $6 million of its $9 million commitment. ($3 million approved by the Fono and another $3 million allocated under Capital Improvement Projects).
The Governor said that when the cable is up and running, anyone or any country that wants to be connected can do so, and the money will go directly to the parties involved.
The cable will be landed in Fogagogo and connected to the Blue Sky Communications site in Ili’ili which will be used as the main center for distribution to the government, private sector, and others.
There have been discussions about the possibility of neighboring Samoa being hooked up to the cable but nothing is yet final.
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