This agreement is an important milestone for the preparation of the next submarine cable to be connected to Iceland. Farice ehf operates the submarine cables FARICE-1 to UK and DANICE to Denmark. A third submarine cable Greenland-Connect connects Iceland to Canada and US. The future cable would be the fourth cable connecting Iceland and increases further the security and resiliency of Iceland´s international telecommunications that are already of a high standard.
A landing site on Reykjanes Peninsula in Iceland is proposed and the route will be west of and non-crossing with regards to existing cables DANICE and FARICE-1. Landing site abroad is likely to be in UK or Ireland. The picture shows one possible route to Ireland with the new cable named IRIS.
The official press release from the Ministry of Transport and Local Government is here (in Icelandic)