A Govt contribution towards an international cable

Amy Adams has announced:

Communications and Information Technology Minister Amy Adams is calling for expressions of interest from companies who are considering building a new international telecommunications cable between New Zealand, Australia and the United States. 

“To ensure we have sufficient international capacity in the medium to long term, the Government is making a $15 million contribution available, and would commit to an anchor tenancy on a new cable for research and education purposes,” Ms Adams says.

This is the same commitment the Government made towards Pacific Fibre, and it is very good to see the Government make the same commitment to other companies who are seeking to build a second cable for us.

The commitment that REANZ would be an anchor tenant is probably more important than the contribution, even thought both are useful.

Some people want the Government to be directly involved in constructing a second cable, but my string preference is for the private sector to do it and I know that Hawaiki at least have a proposal out there. Their proposals includes having the cable connect a dozen or so Pacific Islands, which would be a great boost for them.

InternetNZ has commented:

InternetNZ (Internet New Zealand Inc) is delighted the Government is contributing $15 million and calling for expressions of interest for companies to build an international telecommunications cable between New Zealand, Australia and the United States.

InternetNZ Chief Executive Jordan Carter said this was an excellent move by the Government to help New Zealand’s telecommunications industry.

“Like the Ultra Fast Broadband and Rural Broadband Initiatives, we think this is a fantastic step towards ensuring New Zealand maintains our robust connectivity to the world.

We have sufficient capacity at the moment, and for the near future. But getting greater competition with international connectivity will be good for prices, and having supply meet demand.