TPG inks deal for capacity on Hawaiki cable

20 Aug 2013

Australia’s TPG Telecom has issued a letter of intent to submarine cable group Hawaiki Cable Limited, under which the former has confirmed its intention to acquire capacity on the Australia-US segment of the Hawaiki submarine cable system. Under the multi-million dollar deal, TPG has said it will acquire fibre capacity from Sydney to the US which will initially provide up to 3Tbps capacity using the latest 100Gbps wavelength technology, together with the ability to upgrade to 400Gbps and other future technologies. Further, the telco has confirmed plans to acquire capacity on the Hawaiki trans-Tasman segment from Sydney to Whangarei in Northland, New Zealand.

Commenting on the development, David Teoh, executive chairman of TPG noted: ‘With the continued growth in the TPG Group’s consumer broadband, corporate and wholesale businesses, international connectivity is an important component of TPG’s widespread telecommunications infrastructure … Hawaiki has a team with considerable experience in fibre cable systems and this project represents an excellent opportunity to give us a new high quality international link direct to the US, complementing existing international links, which include TPG’s own Sydney to Guam undersea cable system.’

While detailed financial terms of the agreement are confidential, TPG has said that it expects to incur capital expenditures of between USD10 million and USD20 million for each of the next three financial years (commencing FY14) in relation to the project.

The Hawaiki cable system will stretch for around 14,000km and will link Australia, New Zealand and Hawaii to the US west coast. It is scheduled for completion in late 2015.

Australia, TPG Corporation (incl. iiNet, Internode and AAPT)