As a nation in free association with the United States, Palau has been able to draw on rural utilities funding from the USA to rebuild and modernise its telecommunications infrastructure. Today nearly every household in the nation has access to fixed line telecommunications, and more than half have Internet connectivity. 17,000 of Palau's 19,000 residents have mobile service. Its national telecommunications company has fourteen major points of presence linked by fibre optic cables and microwave links. A competitive telco offers fixed wireless connectivity and WiFi hotspots to around 20% of all users.

To connect to the rest of the world Palau still relies on Satellite. Its major supplier is O3b networks, with traffic terminating in Australia, but geostationary C-band connectivity is kept active for resilience.

Coinciding with the arrival of the SEA-US cable in Guam, Palau and Yap (Federated States of Micronesia) will gain submarine fibre via a grant from the International Development Association. The cable will be treated as a branch of SEA-US, and telcos will likely purchase capacity directly to the United States on the cable.