Pacific Fibre signs build partner for trans-Pacific cable

Pacific Fibre signs build partner for trans-Pacific cable

Monday, 18 July 2011
July 18 (BusinessDesk) – Pacific Fibre Ltd., the local start-up looking to build a second internet cable linking New Zealand to the world, has signed America’s TE Connectivity Ltd. to build its ambitious undersea fibre-cable to compete with Telecom’s Southern Cross cable.

The companies today signed a supply contract for the network with points in Auckland, Sydney, and Los Angeles, Pacific Fibre said in a statement. The 12,750 kilometres of cable are set to be completed in the first three months of 2014.

“Demand for international capacity in Australia and New Zealand is sharply increasing, and is on track to continue growing for years to come,” chief executive Mark Rushworth said.

“The Pacific Fibre cable will not only provide unsurpassed high speed international connectivity to satisfy the growth in broadband demand, but it will also help Australia and New Zealand realise the potential of both countries’ multi-billion dollar broadband initiatives.”

The deal comes after Pacific Fibre closed a $91 million contract with government education network operator Research and Education Network New Zealand Ltd. last week.

Pacific Fibre, which is backed by heavyweight entrepreneurs Sam Morgan, Stephen Tindall, Rod Drury and Peter Thiel, has previously indicated the network would cost some US$400 million to build, though no figure was put on today’s announcement.

The new cable will rival the Southern Cross Cable Ltd. network which links New Zealand and Australia to the U.S., which last month flagged it will upgrade its system next year, with a goal of lifting total potential to at least 6 terrabits per second (Tbps) by 2015.

Pacific Fibre says its network will have ultimate capacity of 12.8 Tbps upon completion. The fibre company started looking for a new vendor to build the cable after partner Pacnet pulled out of the proposal in April.

Former Pacnet executive Mike Constable, who is Pacific Fibre’s director of business development, led the negotiations to pick the vendor. (

BusinessDesk) 17:48:16

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