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22
SEPTEMBER 2009
TelecommunicaTion
Jan Müller
jan@sosialurin.fo
The Faroese Telecommunications company
Faroese Telecom is in the process of
building up new markets outside of the
Faroes. Faroese Telecoms subsidiary Shefa
has already signed long-term contracts
with the UK oil giant BP and UK
telecommunications giant British Telecom
(BT) to supply platforms west of Shetland
and the people on the Orkney and Shetland
islands with capacity. The next step will be
to progress further into the North Sea,
writes Sosialurin.
When the SHEFA-2 fibre optic submarine
cable was underway, some bright heads at
Faroese Telecom saw some completely new
opportunities to realize additional income
from this very advanced communications
cable. The idea was to try to link the
oilfields west of Shetland to SHEFA-2 and
thereby provide higher capacity and secure
telecommunications connections compared
to the considerably limited capacity and
more insecure satellite communications in
use. The result was that Faroese Telecom
and BP sat down together and decided to
deploy additional cables between the two
oilfields Schiehallion and Clair to SHEFA-
2 and agreed to sign a long-term contract.
Links to the main cable
Earlier
this
year,
the
Schiehallion
production vessel and the Clair production
platform were tied into the main cable
between Shetland and the Faroes. The
connections have been tested and now
everything is up and running, says Mr
Davidsen the Faroese Telecom CEO.
Mr Davidsen and Mr Vesterbú, who is
the technical manager at Faroese Telecom,
are very pleased to have passed through
the eye of the needle at BP, who has now
approved the project. It is not an easy task
to have a new project approved by a large
oil company like BP. Many of the BP
routines are extremely cumbersome to
negotiate, not least all the many security
issues.
To have been approved by BP opens the
door for Faroese Telecom to market their
services, which have been accepted by one
of the worlds largest oil companies.
All in all, very good news for Faroe
industry in general.
Beneficial for the Faroe user
For all Faroe broadband users, the BP
contract could mean that Faroese Telecom
services could become cheaper in the
future, as there are more clients to pay for
the operation of the cable, apart form the
initial investment. This first Faroese
Telecom business venture outside of the
Faroes however could spread like rings in
water. Negotiations are already taking
place with other oil companies to deliver
similar IT and communications services.
Opportunities between Shetland and the
Faroes are of course being looked at, but at
the moment, the most promising area
seems to be in the North Sea, where oil
companies are interested in these new high
capacity fibre connections.
The technical manager, Mr Vesterbú says
they have the option to lay additional cables
offshore
from
shore-based
SHEFA-2
locations either in Orkney or Shetland. The
main SHEFA-2 cable runs from Scotland
to Orkney, to Shetland and on to the
Faroes.
Island development
Yet another benefit is to be gained from the
SHEFA-2 cable and that is the new
telecommunications
opportunity
the
islanders on Orkney and Shetland now are
presented with. An agreement has been
signed with the UK telecommunications
giant BT to sell capacity to these island
communities. This is an area, which BT
SHEFA-2 laying gold