November Release


FSMTCable is pleased to release its proposed wholesale pricing for the both the upcoming fiber to the home project and for the interstate and international cables.

The FTTH project was signed off by Congress on May 20 and is scheduled to build fiber to the home infrastructure to the main islands of Yap, Pohnpei and Kosrae and expand connectivity through the Chuuk lagoon. The wider Digital FSM project is also looking to improve internet access to the outer islands across the whole of FSM.

The project is to replace the copper cables that connect across Pohnpei, Yap and Kosrae to connect to the international and interstate cables.


The current copper cables are a bottleneck slowing down access to the internet

The new fiber cables will remove limits – they’re 1000 times faster

FSMTCable expects that the investing of fiber to the home technology will complete the link between the homes, schools, businesses and Government Agencies of FSM to the high capacity submarine cables recently built to Yap and Chuuk. By 2022 all main islands will have access to high speed connectivity. The project also plans to upgrade the capacity on the cable to Guam to a ten times faster technology – meaning that there is no bottleneck in connecting FSM to the world.

The grant funding through the World Bank means that the capital costs of installing the new high capacity networks are covered meaning that only the day to day operating costs need to be met by local homes and businesses. This should mean that high speed, unlimited, connections to the internet will become the new normal for FSM.

Pricing is set to achieve a high-grade service for the same price as today’s entry level service

The proposed wholesale pricing structure is set to enable homes to receive unlimited high-speed internet for the same sort of price they pay today for a basic service.

The consumer wholesale price will be $10 per month, once retail service providers add their costs, prices are expected to be around $30-$35 per month.

Business and Government Offices will pay higher prices, but are expected to get a high grade service for the same price they pay for a basic service today. FSMTCable expects service providers to offer 1Gbps, 10Gbps services over these ensuring access to the latest cloud based services. Prices will be lower and services faster than over existing networks including the new satellite services.

Wholesale prices for fiber access and international connectivity are the same across each state, meaning that everyone should pay the same amount for fiber.

Proposed wholesale pricing for FTTH Services

Interstate and International pricing set to encourage usage and facilitate entry

FSMTCable has also released its proposed interstate and international pricing for wholesale service providers. These costs are currently met by Telecom and with the imminent entry of new providers, a fair way of sharing the costs based on market revenue has been proposed. This makes it fair to both Telecom and new entrants.

There is no charge based on usage. This is to encourage the use of the capacity that has been installed and encourage the development of unconstrained high speed services.

Proposed wholesale pricing for Interstate and International Services

Looking to support new service providers

To deliver the new services, FSMTCable is looking to work with existing and help develop new service providers. FSMTCable is looking to support innovative individuals or organizations who would be interested in setting up as an ISP. With the establishment of the TRA to administer the telecommunications industry it has never been a better time to start up as a new internet service provider.

The goal of Congress in approving the Digital FSM plan is to ensure that homes and businesses get both the best technology in terms of fiber but also a choice in who they get it from.

Contact Mr. Pieter Bakker – CEO FSMTCable for further information about OAE’s services  pieter.bakker@fsmcable.com

Contact Mr. Takuro Akinaga – CEO TRA for further information about becoming a licensed operator.  takuro.akinaga@tra.fm

Presentation on the FSM Telecommunications market

Paper introducing OAE to potential service providers

Looking for construction expertise

Approval by Congress means that FSMTCable is starting to look for local partners who can help it build the network. FSMTCable is engaging experts who have detailed experience in designing and specifying the network, but is looking for local support to build the network and connect homes and businesses to it.

1.      Help us with the civil work to build the network

The first stage is building the network along the roads of each state. This is either in attaching the network to existing utility poles or to bury the network alongside the road. FSMTCable is interested in talking to any party who is interested in building the network. It is expected to be a $4-5m program and FSMTCable is likely to contract it in different components and state by state. FSMTCable expects to be able to specify the work so that anyone who is used to building power, water or telecommunication networks will be able to complete the work. Experience in civil or utility build is more relevant than telecommunications or fiber.

2.      Help us connect homes and offices to the network

Once the network is built, FSMTCable is also looking for parties interested in connecting each individual home or office to the network that is built by the road. This is likely to be a further $4-5m and is likely to require individual crews of two people building the link from each home to the network in the street when the homeowner chooses to upgrade to fiber. This is expected to be a long-term relationship and involve providing the ongoing maintenance services as well. It is an excellent opportunity to build the skill base across each state. The ideal candidate might already have an existing work force across the nation, or in each state, or wish to expand from one state into another. Equally it may be an opportunity for a new business to establish.

At this stage FSMTCable is interested to talking to anyone who might be interested in the construction as it prepares bidding documents. FSMTCable will be procuring both components through an open procurement process.

Contact Mr. Peter Garamfel – National FTTH Rollout Manager – for more information



Paper introducing OAE and FTTH to potential network constructors

Presentation explaining what OAE is looking for in potential constructors.