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project. The project does not lend itself to private financing, given the small client base
envisaged. Nunavut has only 35,600 inhabitants (Statistiques Canada, 2013) and Nunavik 11,000
(Statistiques Canada, 2007). Public funds would be a sine qua non condition for the project to go
through.
A Catalyst to Initiate Northern Development?
Arctic regions, including the Far North of Canada, have limited infrastructure, making economic
development challenging at best, and always costly. Transport costs are higher than elsewhere
and reliable communications do not exist due to meteorological conditions. Internet connectivity
could give these regions the boost they need to kick-start development, attracting investors and
initiating broader development.
Table 1: Summary of submarine fiber optic cables for the Arctic
PROJECT NAME
CONNECTIONS
ESTIMATED COSTS
R.O.T.A.C.S.
Japan, England & Russia via
Terberka,
Anadyr
&
$1.9 billion US
Vladivostok; including regions
of the Russian Arctic
Arctic Fibre
Japan,
USA
(7
native
communities of Alaska; also
Seattle); Canada (7 northern $650 million US
communities
in
Nunavut);
Ireland & England
Ivaluk Network
The 26 northern communities of
Nunavut & the 14 communities
of Nunavik in northern Québec; $800 million CAN
including an extension in the
Northwest Territories
IMPLEMENTATION
End of 2016
January 2015 for the cable in the
Arctic; & November 2016 for
the completed project
Exact timeline to be announced
Several recent examples from circumpolar states show that this hypothesis bears out over time.
High-speed connectivity can be a critical factor for development, given that they have other
assets to attract investors already. Iceland is a good example, with the reconversion of the former
NATO base in Reykjanesbaern to a data center for Verne Global and Colt (Pialot, 2012).
Hydraulic and geothermal power5 provide renewable energy, the Arctic climate provides fresh air
and a high-speed connection via several submarine optical fiber cables. The upcoming Emerald
Express cable (end of 2014) will enhance Iceland’s connectivity since it will be directly connected
to North America via New York, and to Europe via Ireland.6 These competitive advantages may
attract other companies, especially when one considers that Iceland has a lower cost of power
per megawatt/hour than in Europe, at 38 euros versus 42 euros in France (Godeluck, 2012).
Finland offers yet another example with Google’s investments, where the internet giant set up
servers in an old factory. Facebook has chosen to invest in Sweden with a similar server site, a
total surface area of 84,000m² (Clairet, 2012).
The Arctic: A New Internet Highway?