Australian and United States military strategists view resource-rich but largely under-developed Papua New Guinea as having a prized location north of Australia at a time when China is boosting its influence in the region.

The $120-million effort will link northern and southern Papua New Guinea and the Bougainville autonomous region with high-capacity cables, Peter Tsiamalili, PNG's acting minister for information and communications technology, said on Friday.

"The entire investment [is] funded through Australia's commitments under the Pukpuk Treaty," he said in a statement, referring to a mutual defence pact signed in October.

The project reflected both nations' shared commitment to advance digital security, regional stability, and national development, he added.

The subsea cables will be built by Google, the statement said, adding that Tsiamalili met Australian and US diplomats to discuss the project at Google's Australian office this week.

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A Google Australia spokeswoman declined to comment on the PNG project.

Australia's foreign affairs department said on Saturday the cables will lower internet prices for consumers, support economic growth and increase education opportunities.

The cables will position PNG to attract investment from hyper-scalers and global digital enterprises, said Tsiamalili, who is also police minister.

The Pukpuk Treaty gives Australian defense personnel access to PNG communications systems, including satellite stations and cables. The US is also strengthening military ties with PNG, signing a defence cooperation pact in 2023.

Australia and the US have funded various subsea cables across the Pacific Islands in recent years to block a push by China to build the vital communication links, viewed by Canberra as a security risk.

PNG's domestic submarine cable was built by China's Huawei in 2018 and financed by a loan from China's EXIM bank.

"Australia has committed over A$450 million [US$300 million] to support undersea cable connectivity across the Pacific and Timor-Leste, including the Coral Sea Cable between Papua New Guinea, Solomon Islands and Australia," an Australian foreign affairs official said in a statement to Reuters on Saturday.

Australia is expected to also finance a new international cable to PNG.

Google said last month it planned to build a data hub on Australia's Indian Ocean outpost of Christmas Island, another strategic defense location, with new cables linking the island with Australian cities hosting key defence bases also used by the US military.

Two more cable systems will extend westwards to Africa and Asia, to "deepen the resilience" of Indian Ocean internet infrastructure, Google said.

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