As mentioned above, Iceland’s international Internet connectivity is provided through the CANTAT-3 submarine cable, which passes via Germany, the United Kingdom and Denmark through the Faeroe Islands to Iceland and finally to Canada. Restoration is achieved through satellite links. CANTAT-3 has served as the only high-speed fibre optic connection for Iceland and the Faeroe Islands to the outside world since 1994 (Figure 4.4). This level of connectivity has been deemed unsatisfactory, as the cable has had to undergo repair on numerous occasions.
The idea of improving connectivity by building a new cable connecting Iceland and the Faeroe Islands with the rest of the world has been on the drawing boards for some time. In early 2002, the two incumbent operators, Iceland Telecom and Faeroese Telecom, formally joined forces to work on a new cable project by the name of “FARICE”. In September 2002, FARICE was incorporated as a new limited liability company entrusted with managing the project. The route for the new cable is sketched out in Figure 4.5.