TUANZ welcomes Kordia Tasman cable plan

State-owned enterprise seeks to aggregate user demand to fund new cable

TUANZ is welcoming Kordia's ongoing efforts to deliver a second trans-Tasman cable, saying its the only way to rid New Zealand of the "tyranny of data caps".

Yesterday, Kordia reiterated its plan to take an alternative business case to its board in September. That plan seeks to aggregate demand from high capacity users to fund the project.

Kordia CEO Geoff Hunt told TVNZ the project remained viable and would be funded by Kordia itself, bank loans and foundation customers. That plan echoes a similar one put in place by Kordia's Australian cable partner, Pipe Networks, last year to salvage its own pacific cable project, known as PPC1.

The Tasman link is known as PPC2 and is estimated to cost $200 million.

Newman says capacity across the ditch is clearly the single biggest bottleneck in New Zealand's network infrastructure. the new pipe is also needed to boost the security of connectivity, he says.

He says there is nothing wrong with looking to foundation customers to fund the project as a business model. a lot of international capacity is used by a small number of customers, he says.

Earlier this year, Computerworld broke news that Research and Education Advanced Network New Zealand (REANNZ), one of the biggest users of capacity, had cancelled a tender for a second cable. The Kordia/Pipe consortium was considered the leading contender to win any such deal.

REANNZ was charged with leading the process after the government allocated $15 million to the development of a second cable in the 2008 budget.

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