Orcon says it intends to buy bandwidth on the Hawaiki submarine cable currently in the planning stage. The ISP said it will take 40 Gbps in the first year of its deal with increases planned for future years.
Getting big-name customers on board is an important stage for a submarine cable business – being able to show investors there’s a real demand helps grease the financial wheels. Hawaiki has already cut a deal with Australia’s TPG Telecom.
Hawaiki plans a 14,000 km cable linking Australia and New Zealand to Hawaii where it will connect to mainland USA. There are also provisions for connecting Pacific Island nations to the network. The project is due to complete in 2015.
Orcon’s move is interesting. The ISP was once part of Kordia which had its own submarine cable plans. A press statement from Orcon CEO Greg McAlister said the new cable is imperative to New Zealand’s development and the competition would give Orcon better prices, which it can pass on to customers.
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