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Pacnet had even considered building its own submarine cable to overcome the problem he said, but the numbers had not stacked up. He said that it might have been better for Australian competitiveness had the National Broadband Network focussed less on last mile connections and more on international connections linking Australia with other nations.

Unless the issue was addressed he said Australia would be limited in the businesses it could attract, and the applications that would be available to citizens. He said financial services and inherently global businesses were most at risk of becoming internationally uncompetitive because of the higher cost of bandwidth.

To explain its decision to quadruple its local data centre Pacnet cited research from Frost & Sullivan suggesting that the Australia data centre services market will grow from $US447 million in 2010 to $US1.2 billion in 2017 .

Internationally the company has four CloudSpace data centres – one in Sydney, two in Hong Kong and one in Singapore. In addition the company leases space in four other data centres around Australia.

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Beverley Head

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Beverley Head is a Sydney-based freelance writer who specialises in exploring how and why technology changes everything - society, business, government, education, health. Beverley started writing about the business of technology in London in 1983 before moving to Australia in 1986. She was the technology editor of the Financial Review for almost a decade, and then became the newspaper's features editor before embarking on a freelance career, during which time she has written on a broad array of technology related topics for the Sydney Morning Herald, Age, Boss, BRW, Banking Day, Campus Review, Education Review, Insite and Government Technology Review. Beverley holds a degree in Metallurgy and the Science of Materials from Oxford University and a deep affection for things which are shaken not stirred.

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