The Government has earmarked $15 million towards a second
international internet cable between New Zealand, Australia
and the United States.
As well as making the $15 million contribution, the
Government would also commit to being an anchor customer on a
new cable fit for research or education purposes,
Communications and Information Technology Minister Amy Adams
Ms Adams was calling for expressions of interest from
companies considering building a cable, she said in a
The cable would need to meet requirements of education and
research communities, as well as commercial traffic.
''To ensure we have sufficient international capacity in the
medium to long term, the Government is making a $15 million
contribution available, and would commit to an anchor tenancy
on a new cable for research and education purposes,'' she
''In order to take part in global research projects, our
research and education communities need dedicated capacity
that can handle huge data volumes, and provide high levels of
reliability ... ''Building a new cable will further increase
the resilience of New Zealand's international
telecommunications links and also introduce more competition
on the route, as well as providing additional capacity,'' she
The Crown had also committed a $15 million grant to Pacific
Fibre, the abandoned cable project which was backed by
Facebook billionaire Peter Thiel, Trade Me Founder Sam Morgan
and Xero's Rod Drury.
Pacific Fibre hoped to rival the Southern Cross Cable
Networks' pipe, which is the only link transporting internet
traffic in and out of New Zealand. The second cable would
bring competition to the market and bring the price of
international internet capacity down, Pacific Fibre argued.
Pacific Fibre announced in August last year that the project
would not go ahead.