Speed Matters
The Case for an International Cable Internet Connection for Timor-Leste
Timor-Leste is one of only a handful of countries in the world not connected to the internet via a fibre optic cable. Instead, Timor-Leste currently connects to the internet via satellite, which is significantly slower and more costly. The analysis presented in this report suggests that if Timor-Leste invested in a submarine fibre optic cable, this would provide substantially faster, cheaper and more reliable internet access, which would, in turn, provide significant economic and social benefits for the country. Timor-Leste’s 3G mobile phone coverage is excellent, with 97 per cent of the population having access. Yet as of 2017, only 12 per cent of mobile phone subscriptions included 3G internet access and just 25 per cent of Timorese use the internet. This means there is tremendous potential for growth in internet usage. There are also downside risks of not upgrading Timor-Leste’s internet connection. Average internet speeds in
Timor-Leste is already 25 times slower than the average for other countries in Asia and the Pacific, and this is likely to get worse as demand grows. Similarly, the costs of internet services are many times higher in Timor-Leste compared to neighbouring countries, adding significantly to the costs of doing business. Even using conservative estimates, the financial analysis indicates an investment in a fibre optic submarine cable would pay for itself within a few years. Experience from other countries suggests such a cable would bring significant economic benefits to Timor-Leste, boosting economic growth and job creation. A submarine cable will also enable a range of social benefits, including education and health outcomes.
There are a small number of risks related to submarine cables. Firstly, there is a risk of accidental or deliberate damage, particularly near any cable ‘landing’ site. Secondly, there is a low risk of spying. Such risks can be reduced by good choices about country connections and technical specifications.
Timor-Leste has several options with regards to countries to connect to via submarine cable, including Indonesia, Singapore and Australia. There are varying cost, reliability, security and quality factors associated with each of these destinations. Many countries aim for redundancy, connecting at least two cables in the long run.
Submarine cables are increasingly owned and managed by the private sector. However, for Timor-Leste at this time, a public-private partnership would likely offer some advantages. Private partners would bring delivery expertise, whilst partial government ownership would assist problem-solving, reducing risks to the private sector, and protecting the broader interests of society. Careful design of a process for implementing a major infrastructure project like this can help alleviate most risks and concerns. Specifically, it would be beneficial if the submarine cable development is done transparently if competitive processes were used to select one or more private sector partners, and if a shared ownership model was chosen.
