Stories by Jan Birkeland, PC World

Kordia takes on Southern Cross with new, trans-Tasman cable

Kordia and Pipe, an Australian infrastructure company, have agreed 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. In late March Google CEO Eric Schmidt told the Australian Financial Review that there needed to be more undersea cables laid between Australia and New Zealand to guarantee there was enough cable capacity for the internet boom. "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," he said. Kordia CEO Geoff Hunt said that he was very pleased to be working on an initiative that could be critical to New Zealand's economic transformation.  "This MoU signals a change for New Zealand that will help boost our economy and enable us to compete globally by providing competition on the trans-Tasman capacity route.  It also complements the government's commitment to deliver world-class broadband to all New Zealanders: we're upping the ante at home and offshore," Mr Hunt said. Once both companies confirm the commercial and practical feasibility, PIPE Networks and Kordia would together oversee the financing, construction, operation and maintenance of the cable system.