Several weeks ago we speculated on why the Maldives, with its tiny population, needed two undersea cables. The answer is that the first cable is a collaboration between the new entrant Wataniya and India’s disruptive competitor, Reliance (through its FLAG unit). This created enormous pressure on the complacent incumbent Dhiraagu, the result being the cable to Colombo.
A new fibre optic undersea cable that connects Maldives to Sri Lanka will bring down international call charges from the Indian Ocean coral atoll, officials said Tuesday.Until the cable was commissioned this month, bilateral traffic of 600,000 minutes per month was routed via more expensive satellite links.
The undersea cable is a 20 million US dollar joint venture between Sri Lanka Telecom, owned by Japan’s NTT and the government of Sri Lanka and the Maldive state telecom firm, Dhiraagu.
“We expect call charges to fall,” Sri Lanka Telecom Chief Executive Officer Shoji Takahashi said.