On Sunday, the three countries unveiled plans to build an undersea cable to boost internet access in the Pacific island nations of Micronesia, Nauru and Kiribati.
"Historically, we have a deep relationship with Pacific island nations, with which we share the values of democracy. We must avoid a situation in which democracy is threatened by China's control of our telecommunications networks," the source was quoted as saying by Kyodo.
Digicel Group, an international communications provider based in Jamaica, will be responsible for the implementation of the trilateral 5G network development project, according to Kyodo. In October, Australia's Telstra was expected to acquire Digicel's Pacific operations following reports a Chinese firm was looking to purchase it, the news said.
The Australian government will reportedly fund the largest share of the $1.6 billion acquisition, while Japan and the US will contribute to business operations through public-private partnerships. As party of the deal, Japan will provide advanced equipment for 5G, Kyodo said.