New Zealand telco Kordia has announced that it has shelved plans to construct a trans-Tasman cable in the wake of Pacific Fibre’s announcement that it is partnering with Pacnet to build a new international cable connecting New Zealand, Australia and the US. Despite reportedly already investing in groundwork for the project, Kordia CEO Geoff Hunt commented: ‘There’s only room for one (additional) cable across the Tasman, and our project was always a trans-Tasman project. Once Pacific Fibre got to a position where they can launch the project there wouldn’t be a business case to launch a second cable.’
Pacific Fibre announced this week that it has formed a partnership with Pacnet, the largest privately owned cable network in the Asia Pacific region. Under the deal the two companies will share the estimated USD400 million cost of building a 13,600km undersea fibre-optic cable that comprises of at least two fibre pairs with 64 wavelengths per fibre pair. Prior to Pacific Fibre announcement, Kordia has already spent up to NZD2 million and 18 months carrying out marine surveys, arranging for resource consents and consulting with the local fishing industry. Mr Hunt says that Kordia hopes to sell this Intellectual Property to Pacific Fibre, which aims to have the cable operational by 2013.