Samoa : Samoa Submarine Cable Project

Health / Health system development

Information and communication technology / ICT infrastructure

Samoa was one of the first Pacific countries to open telecommunications up to competition through the Telecommunications Act 2005. Following market liberalization, total customers for fixed and mobile lines increased from 12,500 in 2002 to 152,800 in 2008. As of end 2014, over 95% of the population was covered by mobile networks, while mobile penetration had reached 89% of network covered population. However, internet access is lagging significantly, due to high access costs relative to income levels. Broadband penetration was estimated at about 1% fixed and 27% mobile. Projected demand, if prices are lowered, is expected to grow from the current level of about 420 megabits per second to 6 gigabits (Gbps) per second by 2021, and to 30 Gbps by 2028.

Internet prices are driven by the high wholesale internet bandwidth costs. Samoa relies on a submarine cable and satellite service for its international internet connectivity. Samoa is connected to the American Samoa Hawaii cable system via the Samoa-American Samoa cable, which has a remaining useful life of 5 years. The current system capacity of 1 Gbps is above Samoa's current bandwidth demand, but is significantly below projected bandwidth demand. The proposed submarine cable system (SCS), with a minimum capacity of 1 terabits per second and a regulated bandwidth price below current price levels, can facilitate broader internet access and meet Samoa's growing demand. The current ICT service providers are interested in investing in the SCS as a long-term solution to their capacity needs. However, given the significant project cost, there is insufficient private sector interest to invest in such a cable. Therefore, the government is supporting the investment to bridge the gap between the economic and financial viability of the project. ADB supported similar projects in Tonga (also jointly financed with the World Bank) and the Solomon Islands.

The Office of the Regulator (OOTR) was established in 2006 to regulate telecommunications, and has functioned as a multi-sector regulator, including electricity services, since 2013. The proposed SCS aims to improve access to international connectivity; hence, the government requires support to strengthen the legal and regulatory environment, and capacity of the OOTR to regulate international connectivity services to protect the long term interests of consumers. Strong and robust regulation is essential to ensure the Samoa Submarine Cable Company (SSCC) does not engage in monopoly pricing or other anticompetitive behavior.

The ICT sector is recognized as an enabler of economic growth and development. Reliable and affordable ICT helps create new business opportunities and with it employment. The proposed project will cater to increased demand for high-bandwidth applications by businesses, households and individuals. In 2014, the government launched the Samoa National Broadband Highway, an internet ready fiber/mobile network linking all government offices, schools and hospitals. With affordable international connectivity, the proposed SCS will enhance the domestic network's delivery of improved public services.

The government has already adopted elements of e-education with the support of development partners and ADB also provided support for an online secured transactions registry and an online company registration. The government has now selected the health sector for implementation of an e-strategy to improve service delivery and reduce the reliance on overseas medical care. The Samoa Ministry of Health (MOH) is planning and designing investments to effectively implement its 5-year health information strategy and has undertaken an initial needs appraisal which identified a patient information system as a priority. The project will help the government implement an e-health patient information solution, and explore e/m-health initiatives utilizing improved ICT accessibility domestically through the national broadband highway and internationally through the SCS.

The proposed project is consistent with ADB's Pacific Interim Approach 2015 and Samoa's country operations business plan 2015 2017. It also aligns with a key outcome of the Strategy for the Development of Samoa 2012 2016 to facilitate _universal access to reliable and affordable ICT services._

Special purpose vehicle-the SSCC-to operate and manage the SCS established

SCS established and efficiently operated

Legal and regulatory environment improved

Investments in e-health solutions

1. SSCC is established, the Board of Directors appointed and CEO recruited. SSCC now fully manages the SCS.

2. The Tui Samoa Cable was officially launched in February 2018 and is now operational.

3. Ongoing.

4. Ongoing.

Project is on-track.

A consulting firm has been engaged in November 2016 to design, manufacture, test, deliver, install, complete and commission Facilities, viz Samoa Submarine Cable System Extended Configuration.

Activities under the package is nearing completion.