Bluesky Communications has expanded its reach in the South Pacific by acquiring a majority share of a telecommunication firm in the Cook Islands, and the purchase is being financed by a regional financial institution.

in a news release on Monday this week, Bluesky Group announced that its Cook Islands subsidiary, Teleraro Ltd, has completed the purchase of a 60% interest in Telecom Cook Islands from Spark New Zealand.

“We are delighted to have completed this important expansion for the Bluesky group, which is in line with our regional growth strategy and further strengthens our capability to deliver world class telecommunications services to our Pacific Island markets through local partnerships,” Bluesky Group chief executive officer Adolfo Montenegro said in the release.

“It is a significant milestone for us, as Bluesky expands its operations to cover three Pacific Island territories. With the addition of Telecom Cook Islands to the Bluesky group, we expand our collaboration with our Samoan investment partners and welcome our new Cook Islands partners,” he said.

The Cook Islands Government maintains its 40% ownership in Telecom Cook Islands, it says adding that Teleraro’s ownership structure also includes participation for Cook Islands investors and Telecom Cook Islands employees.

Bluesky said the stake in Telecom Cook Islands was purchased for approximately NZD$23 million (approx. US$17.42 million) with financing provided by a regional bank.

Asked for the name of the regional bank and if the entire amount is being financed by that bank, Montenegro told Samoa News, “I can not disclose the exact amount of the financing but I can confirm that various entities of ANZ were involved.”

In the news release, Bluesky said Telecom Cook Islands is a leading telecommunications services company in the South Pacific, providing fixed telephony, mobile telephony and Internet services for the Cook Islands’ population.

Samoa News also asked Montenegro if Telecom Cook Islands provides undersea fiber optic cable, and if it uses the O3b satellite which will be used by the American Samoa Telecommunications Authority.

He responded that the Cook Islands does not have a submarine fiber optic cable connected to it, adding that it uses satellite services “because they have no other option.”

He said “They would like to have submarine fiber optic, but that is not an option as in American Samoa.

"They were the first to launch O3B in the Pacific,” Montenegro explained. “Bluesky parent company is looking for alternatives that could make a submarine fiber cable a reality for Cook Islands just as we remain committed to further developing a submarine cable solution for the Samoas.”

Bluesky is the majority shareholder, while ASG is the minority, in the American Samoa Hawaii Cable (ASH Cable), the undersea fiber optic cable linking the territory to the U.S., while the other part of the cable links American Samoa to Samoa.

In the news release, Montenegro said Bluesky is pleased to have Telecom Cook Islands team join the Bluesky family.

“As we integrate the operations, we look forward to building upon the delivery of outstanding customer service and high quality telecommunications solutions to the people of the Cook Islands, in line with our vision of being #1 at connecting Pacific people,” he said.

Montenegro is quoted by the Cook Islands News saying that he has personally been interested in investing in the Cook Islands since 2012, and is excited about the partnership.

“Our initial focus was to connect Samoan communities, but now we realize that our culture expands, and we share the Polynesian way of life and can grow together,” he told the newspaper.

First established in American Samoa in 1999, Bluesky is also the cable television service provider in the territory through Bluesky Moana TV and Montenegro tells the Cook Islands News that he hopes this service can also be rolled out in the Cook Islands.

Bluesky expanded service to Samoa in 2011 with a successful bid in the privatization of SamoaTel, now called Bluesky Samoa.