The capacity is fully protected, meaning that iiNet has capacity on both loops of the cable, so if one fails it will have access to the same bandwidth on the other.
iiNet CEO, Michael Malone said the move demonstrated the benefits of iiNet aggressive growth strategy - this year it has acquired rival ISP Internode and ACT based fibre and HFC network operator, TransACT.
"This growth has translated into improved supply agreements and commercial returns, making way for the delivery of even more innovative products and services," Malone said.
However, on its published schedule the company has yet to integrate its own international links with those of Internode and TransACT. In a presentation to Morgan Stanley's Emerging Companies conference in June, the timeframe for 'international bandwidth rationalisation' was given as H2FY13 onwards.
Malone added: "The multi-year agreement increases iiNet's international bandwidth capacity and strengthens the ability to provide increased levels of content, applications and enhanced services in a cost effective manner in the move towards the NBN."
In January Southern Cross announced "the immediate availability of the first 200 Gigabits of capacity from its latest upgrade and a price reduction of up to 44 percent." Southern Cross' sales and marketing director, Ross Pfeffer, said it was the third largest price cut in the company's history.
In a presentation to the Internet Society of New Zealand in April, Pfeffer said the 'market price' of 10 year indefeasible rights of usage on submarine links to the US was between $US0.8m and $US1.2m per Gbps of capacity on an unprotected 10Gbps link. This, he said, equated to a cost of six cents per Gbyte of data.
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