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- Release Date: 19/02/13 10:51
- Summary: GENERAL: TEL: TELECOM TO CO-INVEST IN AUCKLAND-SYDNEY CABLE
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TEL
19/02/2013 08:51
GENERAL
REL: 0851 HRS Telecom Corporation of New Zealand Limited
GENERAL: TEL: TELECOM TO CO-INVEST IN AUCKLAND-SYDNEY CABLE
TELECOM, VODAFONE AND TELSTRA INTEND TO CO-INVEST IN NEW AUCKLAND-SYDNEY
TELECOMMUNICATIONS CABLE
- CABLE WILL SIGNIFICANTLY IMPROVE NEW ZEALAND'S CONNECTIVITY WITH AUSTRALIA
AND LINKING INTO INTERNATIONAL CABLE SYSTEMS
Telecom, Vodafone and Telstra announced today they have signed a non-binding
memorandum of understanding (MoU) to co-invest in the construction of a new
submarine cable between Auckland and Sydney.
The new cable, tentatively titled the Tasman Global Access (TGA) Cable, will
significantly improve New Zealand's international telecommunications
connectivity as well as strengthen links into fast-growing Asian markets.
The total cost of the TGA cable is expected to be less than US$60 million.
The cable will incorporate three fibre pairs with a current design capacity
of 30 terabits per second - approximately 300 times the current internet data
demand out of New Zealand.
The TGA partners expect to finalise the design within the next few months,
with a likely completion date of mid to late 2014.
Telecom chief executive Simon Moutter and Vodafone New Zealand CEO Russell
Stanners jointly commented: "The business case for a new cable between New
Zealand and Australia is compelling, providing greater capacity and global
redundancy capability. It also reflects the growing importance of
trans-Tasman internet traffic: for example, around 40% of both Telecom and
Vodafone's international internet traffic is now Australia to New Zealand,
versus just 10% in 2000.
"We are seeing increased data content being provided from Australia-based
servers by global companies and being accessed by New Zealand internet users.
An additional cable connection with Australia will strengthen the business
case for international data servers to be located in New Zealand.
"The Tasman Global Access cable will also enable New Zealand to better
leverage the four additional international cable systems currently serving
Australia (with several more proposed or in development), providing
important redundancy for New Zealand. Australia also enjoys good
connectivity with Asia, which is achieving strong internet traffic growth in
line with global economic shifts."
Martijn Blanken, Managing Director, Telstra Global remarked, "The partnership
is a great outcome for Telstra as the high capacity, low latency Tasman
Global Access Cable will supply greater resilience and redundancies for
carriers as well as enterprises that are located in Australia and looking for
connectivity to New Zealand as well as stronger international connectivity.
This cable will enable New Zealand to better leverage Australia's much
stronger internet connectivity. It will also achieve significant
international connectivity benefits for New Zealand to link with Australia,
and also onwards to the USA and into Asia.
The TGA cable will achieve significant international connectivity benefits
for New Zealand at a fraction of the build cost of another, much longer
trans-Pacific cable, the consortium partners said.
For Telecom media inquiries:
Andrew Pirie
GM Corporate Relations
[email protected]
+64 (0) 27 5550275
For Telecom analyst inquiries:
Mark Laing
GM Capital Markets & Investor Relations
[email protected]
+64 (0) 27 227 5890
For Vodafone media inquiries:
Vodafone Media Relations
[email protected]
0800 VF MEDIA (0800 836 3342)
End CA:00233100 For:TEL Type:GENERAL Time:2013-02-19 08:51:45
