SYDNEY, Dec 12 (Reuters): Alphabet's Google will build three subsea cables in Papua New Guinea, which the largest Pacific Island nation said was funded by Australia under a mutual defence treaty, in a key upgrade to its digital backbone.
Australian and U.S. military strategists view resource-rich but largely under-developed Papua New Guinea as having a prized location north of Australia at a time when China is boosting its influence in the region.
The $120-million effort will link northern and southern Papua New Guinea and the Bougainville autonomous region with high-capacity cables, Peter Tsiamalili, PNG's acting minister for information and communications technology, said on Friday.
"The entire investment (is) funded through Australia's commitments under the Pukpuk Treaty," he said in a statement, referring to a mutual defence pact signed in October.
The project reflected both nations' shared commitment to advance digital security, regional stability, and national development, he added.
The subsea cables will be built by Google, the statement said, adding that Tsiamalili met Australian and U.S. diplomats to discuss the project at Google's Australian office this week.
A Google Australia spokeswoman declined to comment on the PNG project.
Australia's foreign affairs department said on Saturday the cables will lower internet prices for consumers, support economic growth and increase education opportunities.
The cables will position PNG to attract investment from hyper-scalers and global digital enterprises, said Tsiamalili, who is also police minister.
The Pukpuk Treaty gives Australian defence personnel access to PNG communications systems, including satellite stations and cables. The United States is also strengthening military ties with PNG, signing a defence cooperation pact in 2023.