Alphabet's Google and the Chilean Government signed an agreement during a Wednesday meeting to deploy a 14,800 kilometer (9,196 mile) submarine data cable to connect Australia and Asia. The cable is expected to be operational in 2027.

The first pact of its kind, between a technology giant and a nation, is designed to boost Chile's digital connection with Asian nations including China, Chile’s largest trading partner. It also advances Chile's ambitions to be a regional hub in Latin America.

Juan Carlos Munoz, Transport Minister, told journalists: "It is the first submarine cable to be installed in the South Pacific. It's a significant commitment because we have a strategic partner who will make the cable operational by 2027."

Cristian Ramos is the head of Alphabet Latin America's telecommunications network. He said that other entities including technology companies operating in Chile could use this cable.

Submarine cables are a crucial part of the technological rivalry between China and America in Latin America.

According to Patricio rey, the general manager of Desarrollo Pais (a state-owned venture partner), the Chilean government had estimated the costs to range from $300 million up to $550 millions. Chile contributed $25 million.

Authorities said the cable would improve the performance of Asian platforms such as TikTok and facilitate the transmission of astronomical data. It could also support mining operations both in Chile and Australia.

Claudio Araya, Deputy Secretary for Telecommunications, said: "By having a direct line, mining companies with operations in Chile and Australia can consider a shared control center... where command centers can help each other."

Next year, the cable connecting Valparaiso, in Chile's central area, to Australia will be deployed. Desarrollo Pais, the state of Chile, is also interested in linking the cable with Argentina via a crossing at the border.

The partners are looking for an operator who can commercialize the cable capacity. However, a final selection may not take place before year's end.

Araya stated that the initiative may inspire similar ventures connecting South America to Asia. Chile, on the other hand, is planning to build a submarine cable that will link the southern tip South America and Antarctica, mostly for research purposes. (Reporting and editing by Fabian Andres Cambero)

(source: Reuters)