Australia, New Zealand Plan $60M Trans-Tasman Submarine Cable
By Esther Tanquintic-Misa | February 19, 2013 3:25 PM EST
New Zealand's major telecoms players, Telecom, Vodafone and Telstra, announced on Tuesday that they have entered into a non-binding memorandum of understanding that would pave for the construction of a new $60 million worth fiber-optic cable connecting New Zealand with Australia. Opposition parties in the country immediately slammed the concept as furthering the already monopolistic nature of connectivity and pricing that they already have.
With a capacity of 30 terabits per second, about 300 times New Zealand's data needs, the three telecoms players said they expect to finalise the new cable's design within the next few months. Target construction completion date has been set anytime from mid to late 2014.
But New Zealand's Green Party said the proposed telecoms project "would not address the monopoly Telecom currently has on connectivity to the rest of the world."
"The second trans-Tasman cable will improve New Zealand's Internet connectivity but will do little to break Telecom's monopoly over pricing," Gareth Hughes, Green Party ICT spokesperson, said in a statement.
"The move will now make it much harder to justify building a second cable to the USA, yet this is exactly the kind of internet infrastructure New Zealand needs if we are to have a truly resilient and competitive network. Reliance on a single provider for our international internet provision has meant higher prices, data caps, and less innovation for services. Today's announcement is likely to have only a small impact on the current unsatisfactory situation. It's not the step change our economy needs."
Clare Curra, Labour's communications and IT spokesperson, likewise said that as the cable infrastructure will be built by the telecommunication companies, there is a concern that they may provide the retail services on it.
"Labour seeks assurances that these issues are addressed transparently and that there is commercial wholesale capacity available for other carriers on an equal footing," Ms Curran said.
The cable, the fourth linking the two countries, targets to provide enough capacity for the next 20 years.
The two countries are currently serviced by two other undersea cables, the Tasman 2 and the Southern Cross, owned by Telecom New Zealand, SingTel Optus and Verizon Business.
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail:
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
Join the Conversation
- China Military PLA Drills Affect Flights, Hundreds Cancelled
- Malaysia Airlines MH17: EU Feared Won't Ever Enforce Sanctions on Russia; All Talk, No Force
- Reserve Bank of New Zealand Raises Interest Rates Due to 'Unsustainable' Kiwi
- U.S. Flights to Israel Now Lifted, Flights To and From Tel Aviv Resume – FAA
- Embattled Malaysia Airlines Could Run Out of Cash 2015; Diverts Plane Over Another War Zone After MH17 Crash
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales
- Sony Xperia M2 vs. Moto G – Specifications, Features and Price Showdown