Gondwana-2 scheduled for completion in 2022

The South Pacific region has become a hub for submarine cable system developments in recent years, with further networks scheduled to come online later in 2021 and into 2022. These new cables are expected to increase competition in the region with regards to international capacity. In 2020, the government owned telco OPT-NC commissioned Alcatel Submarine Networks (ASN) to build the Gondwana-2 cable system to provide additional network capacity and complement the Gondwana-1 cable.

New Caledonia’s telecom sector is dominated by OPT-NC, which holds a monopoly and provides fixed and mobile voice services, mobile internet, fixed broadband access, and wholesale services for other ISPs.

The country is well serviced by extensive 3G and LTE networks and is considered to have one of the highest smartphone adoption rates in the Pacific region.

While DSL is still the dominant fixed broadband technology, OP-NC is also deploying a nationwide FttP network.

BuddeComm notes that the outbreak of the Coronavirus is having a significant impact on production and supply chains globally. In 2020, the telecoms sector experienced a downturn in mobile device production, and it was also difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G was postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Key developments:

• Gondwana-2 international submarine cable due for completion in early 2022;
• Tamoo cable to connect New Caledonia to Hawaiki cable scheduled for completion later in 2021;
• Civil unrest as Brazilian mining company Vale plans its exit from New Caledonia;
• October 2020 referendum for independence from France showing 53% of voters chose to remain part of France;
• Fibre subscribers number over 20,000 by end-2020, with 32,800 homes passed;
• Report update includes an assessment of the global impact of Covid-19 on the telecoms sector, recent market developments.

Companies covered in this report include:

Office des Postes et Télécommunications de Nouvelle-Calédonie (OPT-NC), Alcatel Submarine Networks (ASN), Société Calédonienne de Connectivité Internationale (SCCI), Hawaiki Cable, Alcatel Submarine Networks (ASN), Orange Marine, Hawaiki Submarine Cable