The Chinese multinational, Huawei, has been contracted by the Solomon Islands government to install an undersea internet cable from Sydney to Honiara.
The finance minister, Snyder Rini, said an agreement will be signed this month, and work will begin in February and the cable should be operational towards the middle of 2018.
Mr Rini said the government's commercial arm, the Investment Corporation of Solomon Islands, and the National Provident Fund will jointly own the undersea cable company.
Huawei is the world's largest telecommunications equipment manufacturer.
However, in 2012, the Australian government excluded the company from tendering for the construction of its national broadband network on the advice of its spy agency over security concerns.
Huawei will also help Papua New Guinea build a national broadband transmission network and has said tis national submarine cable network will help provide the "backbone telecommunications needed by major coastal centres and islands in PNG".