Pipe Networks teams with Kordia for new Aus-NZ sub cable

Stuart Corner
Monday, 07 April 2008 05:12

Business IT - Networking

Only weeks after committing to build PPC-1, its planned submarine cable link from Sydney to Guam , Pipe Networks (ASX: PWK) has announced preliminary plans for a second cable connecting Australia to New Zealand to be build in conjunction with New Zealand communications and broadcast networks provider Kordia Group.

Pipe Networks' subsidiary, Pipe International and Kordia have signed an MoU to collaborate on a project for a new, private fibre optic cable that will link Australia and New Zealand. "This announcement is a shot in the arm for telecommunications in New Zealand and I am delighted to be working with Kordia to resolve the chronic bandwidth issues facing all New Zealanders," Pipe Networks managing director Bevan Slattery said.


The project at this stage is somewhat tentative. According to Pipe, "the MoU is the first major milestone towards the commencement of construction of PPC-2. Once both companies have confirmed the commercial and practical feasibility, Pipe Networks and Kordia would together oversee the financing, construction, operation and maintenance of the cable system."

Kordia is the name given in late 2006 to the former THL Group which comprised Broadcast Communications Ltd (New Zealand), THL Australia and AAP Communications Services (Australia). The company operates and maintains a network of broadcasting and telecommunications transmission infrastructure across New Zealand and Australia and provides other broadcast telecommunications and converged services throughout the region.

According to Slattery, "Much like Australia, New Zealand suffers from a severe lack of competition when it comes to international bandwidth and the price of bandwidth reflects that. During the planning stage of our Sydney to Guam cable (PPC-1), Pipe International had always intended to assist in the development of PPC-2 a new competitive submarine cable connecting New Zealand to Australia and beyond."CONTINUED