The objectives of the government participation in Saba Statia Cable System B.V. (SSCS), the public company that manages the submarine cable connecting Saba and Sint Eustatius to other islands, have largely been achieved. At the same time, it appears that the governance of the government participation needs to be improved. This is evident from the study “Optical Cable Reviewed” (Optische kabel tegen het licht) by Economic Bureau Amsterdam (EBA), which was submitted to the House of Representatives of The Netherlands this month.
Since SSCS began managing the submarine cable, the reliability of the connection has increased and the costs of international internet traffic to Saba and Sint Eustatius have been decimated. The network has sufficient long-term capacity, and the route is redundant. These factors contributed to the increased internet traffic: data traffic to both islands increased significantly, even compared to the international trend. The study shows that execution through a government participation is well-suited to these activities.
At the same time, the governance of the government participation has shortcomings. For example, the supervisory board has not been installed, the collaboration between SSCS and the shareholder is informal, and transparency regarding the company is a concern. EBA therefore recommends establishing a supervisory board and increasing transparency. Furthermore, EBA recommends reassessing which activities should fall within and outside the company, considering partial share transfers, and strengthening market oversight.