A group of leading businessmen has unveiled a $900 million
plan that would link New Zealand, Australia and the United
States with 13,000km of fibre cable, delivering faster
broadband to New Zealanders.
The initial proposal is a cable which will deliver five times
the capacity of the existing Southern Cross system.
"We are seeing a growing digital divide between New Zealand
and the rest of the world. We need this infrastructure if we
are serious about growing international businesses from New
Zealand," Rod Drury, the founder of Xero, said.
"The introduction of a new cable would drive competition and
capacity in the international bandwidth market, building on
the success of the Southern Cross cable, which was critical
for New Zealand when it was built 10 years ago.
"This proposed cable would provide internet service providers
and large and small businesses with a major boost in capacity
and speed, but also give the extra redundancy that another
cable provides."
Pacific Fibre aims to deliver a high capacity, low latency
international internet service to Australia and New Zealand
by connecting Australia and New Zealand to the USA with
13,000 km of cable.
The cable from New Zealand to the USA would be direct,
substantially reducing the distance compared with existing
cables. That would reduce the latency, or lag, associated
with the cable.
Businessman Stephen Tindall said improved internet access
could deliver big economic benefits.
"If we are able to deliver on this cable this it could be as
valuable to our NZ economy as the quantum leap refrigerated
ships were to our export trade many years ago."
Mr Tindall said early feasibility work had been completed,
and the group now needed to determine the level of interest
from potential partners before assembling a full business
case to take to investors and bankers.
Former Vodafone chief marking officer Mark Rushworth said 90%
of New Zealand's internet traffic went offshore, and a major
boost in the international capacity was needed.
"We are seeing a huge increase in demand from consumers and
businesses driven by the use of video which is increasing in
resolution and use."
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