Telecom Corp., Vodafone, Telstra Issue Tender for Auckland-Sydney Cable

   By Rebecca Howard 
 

WELLINGTON--Telecom Corp. of New Zealand Ltd. (NZTCY, TEL.NZ), Telstra Corp. (TLSYY, TLS.AU) and Vodafone Group PLC's (VOD, VODFP, VOD.LN) local unit said Thursday they have issued a tender for a telecommunications cable that will run between New Zealand and Australia.

The undersea cable linking Auckland and Sydney will be capable of handling 300 times New Zealand's current internet data requirements. Earlier this year, the three companies said the cost of the cable is expected to be less than US$60 million and will have a design capacity of 30 terabits per second.

Several international submarine cable contractors have been invited to tender for the Tasman Global Access Cable and all have indicated strong interest in responding, Telecom and Vodafone said in a joint release.

They expect to select the winning bidder "over the next couple of months." Cable construction is expected to start in 2014 and the 2,300-kilometer undersea cable system is expected to be operational by early 2015.

New Zealand currently relies on one high-speed fiber-optic cable between Australasia and the west coast of the United States. The Southern Cross international cable is half owned by Telecom, which also has a 33% stake in a second, limited-capacity cable connecting New Zealand and Australia. Telstra has a 36% stake in the second cable.

Write to Rebecca Howard at [e-mail]

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