The US cable company SubCom will lay an undersea internet cable connecting Papua New Guinea with Australia and Hong Kong.
SubCom said last week it had been commissioned by Singapore's H2 Cable to build the cable, which is the most direct internet link yet between Australia and China.
The connection includes possible branches to PNG's capital of Port Moresby and Honiara in the Solomon Islands.
The $US380 million line is due for completion in 2022 and analysts say it will threaten future connections pushed by controversial firm Huawei.
Jonathan Pryke of the Lowy Institute said the cable will greatly increase internet accessibility in PNG.