Unable to meet the minimum level for service commitment on their own to bring an O3B solution, both the  telecommunication operator/carriers in Palau (PNCC) and Federated states of Micronesia (FSMTC) had jointly negotiated with O3B, and this week after earlier finalizing details last month have have signed a deal with O3B to provide fast internet connectivity to Palau and Yap, the far west State of FSM closest to the Republic of Palau.

The joint negotiation was possible through the Caroline Cable Corporation, a partnership between PNCC and FSMTC that was established in 2011 to earlier explore submarine cable connectivity to Palau and Yap. The O3B solution was also more possible with the close proximity of the FSM State of Yap and the Republic of Palau to share the same beam from the O3B satellites.  Each company is signing its own service agreement with O3b

PNCC stated that the O3b solution have been under some study. After some positive pre-services test feedback with Cook Islands and positive details in the deal, the O3B solution is considered the ideal interim solution for Palau as it continues to evaluate its options to achieve the long-term goal of international connectivity to the world via a submarine fiber optic cable.

"Since it has much lower up-front costs and a shorter start-up period than fiber cable, O3b will enable PNCC to improve the quality of service to its customers sooner", said the PNCC General Manager Mr Richard Misech

He added that "we're pleased that the O3b solution could be achieved for Palau through PNCCs partnership with FSMTC, and look forward to offering more satisfying, higher quality services to our customers after its implemented in early 2014.

For FSM, the main Island Capitol State, Pohnpei is already connected with Majuro in the Marshall Islands via submarine cable to Guam