The Federated States of Micronesia Telecommunications Corporation has signed a deal with cable manufacturer Tyco Telecommunications to construct a submarine fibre-optic cable connecting Micronesia to Guam.
The Marianas Variety newspaper reports the new cable will be an extension of a cable system currently being constructed between Kwajalein and Guam, and will be completed in March 2010.
The connection will link Majuro and Ebeye islands in the Marshalls, and Pohnpei in Micronesia with the rest of the telecommunications world.
The Marshall Islands and Federated States of Micronesia received loans from the US government to finance the 30 million US dollar development.
