SANTIAGO, June 4 (Reuters) - Alphabet's Google
signed an agreement with the Chilean government during a meeting
on Wednesday to deploy a 14,800-kilometer (9,196-mile) submarine
data cable across the Pacific Ocean to connect with Australia
and Asia, set to be operational by 2027.
The pact, the first of its kind between the technology giant
and a country, aims to bolster Chile's digital connectivity with
Asian nations, including China, Chile's largest trading partner,
while advancing its ambitions to become a regional hub for Latin
America.
"It's the first submarine cable in the South Pacific, so
it's an important commitment in that we have an extraordinary
strategic partner for a cable that should be operational in
2027," Transport Minister Juan Carlos Muñoz told journalists.
Cristian Ramos, head of telecommunications infrastructure
for Alphabet's Latin American unit, said the cable would be open
for use by other entities, including technology firms operating
in Chile.
The initiative coincides with intensifying competition
between China and the United States for influence in Latin
America, with submarine cables emerging as crucial
infrastructure in their technological rivalry.
While the total investment in the project remains
undisclosed, Chilean officials had previously estimated costs
ranging from $300 million to $550 million, with Chile
contributing $25 million, according to Patricio Rey, general
manager of Desarrollo Pais, a state-owned partner in the
venture.
Authorities suggested the cable could enhance the
performance of Asian platforms like TikTok, facilitate
astronomical data transmission, and support mining operations in
both Chile and Australia.
"Mining companies that have operations in Chile and
Australia, by having a direct route, we can think about a shared
command center... where the command centers can support each
other," said Deputy Secretary of Telecommunications Claudio
Araya.
The cable, connecting Valparaiso in Chile's central region
to Australia, is scheduled for deployment next year. Chile's
state Desarrollo Pais is also looking into linking the cable to
Argentina via a border crossing.
Partners aim to identify an operator to commercialize the
cable's capacity, though a selection may not be finalized before
year-end.
Araya said the initiative could attract similar ventures to
connect South America with Asia. Separately, Chile is planning a
submarine cable to link the southern tip of South America with
Antarctica, primarily for research purposes.