Australia aims to stymie China with $US1.6bn telecoms purchase in the Pacific

Australia is to buy the mobile phone networks of Fiji, Papua New Guinea, Nauru, Samoa, Tonga and Vanuatu from Digicel Group based in Jamaica. Telstra Corp, the country’s biggest telecom operator, will pay $US1.6 billion for the deal backed by $US1.3 billion from the Government’s export finance agency.

Commentators describe this as a significant strategic move to block another potential buyer – China.  Three years ago, Canberra announced it would build an undersea high-speed internet cable to the Solomon Islands, shutting out China’s Huawei Technologies Co. from the project. Australia had earlier banned Huawei from involvement in its own 5G mobile network.

The purchase sits alongside underwater cables Australia has with its Pacific partners.

The Wall Street Journal quotes John Lee, a senior fellow at the United States Studies Centre at the University of Sydney, saying,

“It’s ensuring that a potential adversarial power doesn’t own infrastructure which would impact on not just Australia’s communications capabilities, but also its military capabilities. Underwater warfare is increasingly important and these cables are directly relevant to that.” Continue reading “Australia aims to stymie China with $US1.6bn telecoms purchase in the Pacific”