Pipe Networks picks builder for submarine cable

Stuart Corner
Thursday, 09 August 2007 10:38

Business IT - Networking

Pipe Networks is yet to make a firm commitment to proceed with Project  Runway, its planned submarine cable linking Sydney To Guam, but it has announced that, if it goes ahead, Tyco Telecommunications will build it.

Tyco Telecommunications has committed to a target ready for service date of end of Q4 2008. Pipe says this would allow it to interconnect and provision customers in Q1 2009 as previously released to market. The value of the deal was not disclosed.

Pipe Networks CEO, Bevan Slattery said: "The team at Tyco Telecommunications presented a superior offer and demonstrated a level of commitment to Project Runway which was exceptional. We look forward to working with the team over the next month to finalise the schedule prior to the project decision date in September".

Pipe says it "continues to be actively engaged in negotiations, subject to confidentiality and final build approval, of contracts with domestic and international parties," but that it will not proceed "unless the firm commitments ensure the financial viability of the project."

Tyco Telecommunications is one of the oldest businesses in the submarine cable industry: its origins are in AT&T Submarine Systems. AT&T Submarine Systems was bought by Tyco International in the 1990s and later hived off as Tyco Electronics. It is now an independent entity listed on the New York Stock Exchange.

According to Pipe Networks, "In over 50 years of operation, they have designed, manufactured, and installed more than 80 undersea fibre optic systems around the world. Their industry-leading research and development laboratories, manufacturing facilities, installation and maintenance ships, supply depots, and management team work together to deliver integrated solutions and network upgrades, supporting the needs of telecommunications carriers, Internet providers, offshore and scientific research customers worldwide."

Pipe's Project Runway is also closely tied to another arm of the former Tyco empire: Tyco's global cable network was sold to VSNL international which is partnering with Pipe in Project Runway and which will provide onward connection from Guam.