By RadioNZ

The American Samoa Telecommunications Authority has signed a deal with the developer of a new submarine cable system which would boost connections and lower internet costs.

The multi-million dollar deal will allow the telecommunications provider to have its own spur connecting to the Hawaiki submarine cable which will link Australia and New Zealand to the United States mainland.

The devleopers Hawaiki Submarine Cable LP say the deal will also provide a substantial amount of capacity to the state of Oregon at a very competitive rate.

The chairman of the territory's Telecommunications Authority Roy Hall says every household, business and institution will soon benefit from premium broadband services.

He says it will enable American Samoa to become a regional hub for Polynesian countries and territories wanting to connect to the US.

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