Chorus, DataGrid team for 540 Tbps Tasman Ring Network
Submarine cable project takes Chorus' business in new direction
Chorus and DataGrid have gone public on plans to build a 6,000km trans-Tasman submarine cable network. The new Tasman Ring Network has a planned capacity of 540 Tbps.
Depending on demand levels, the pair say there will be nodes serving Auckland, New Plymouth, Greymouth and Invercargill along with Sydney and Melbourne.
A DataGrid statement published early on Thursday morning says the Tasman Ring will “...greatly improve internet capacity and resilience in New Zealand and provide much-needed diversity out of the South Island”.
It says the network will be operational by 2027.
Connecting Makarewa data centre
Three years ago Datagrid founders Remi Galasso and Malcolm Dick announced a $700 million project to build what could become New Zealand’s first hyper-scale data centre in Southland.
This has since been relabelled as a 240 MW “sustainable AI training centre.”
As part of that project, DataGrid proposed a new submarine cable connecting Invercargill to Australia along with a domestic submarine cable linking the site to major New Zealand cities. The Tasman Ring is an expanded version of this.
Galasso and Dick previously worked together to build the Hawaiki trans-Pacific cable.
Chorus teaser
At Chorus’ Investor Day presentation on Monday, the fibre wholesale company showed a slide titled: “Exploring Option 3”. Chorus told investors it was: “Investigating an opportunity with DataGrid that includes national and trans-Tasman connectivity”.
The slide says the move “could unlock a key role for Chorus in burgeoning data centre ecosystem and leverage lower South Island renewable energy. Builds on Chorus’ existing network and plans for enhanced national backhaul.”
Three days later the option had turned into a public announcement.
Responding to the announcement, Chorus' executive general manager of infrastructure, Mike Shirley says: “Trans-Tasman connectivity is a natural adjacency to Chorus. The Tasman Ring project would allow New Zealand to compete in the international AI market and harness the global acceleration of cloud adoption”.
ComCom tightens screws on broadband and energy bundles
The Commerce Commission wants Contact Energy and Nova Energy to stop using GST-exclusive pricing when selling broadband and electricity service bundles. GST-exclusive prices make the company’s services appear 15 percent cheaper than those sold by rivals.
Under the Fair Trading Act 1986, New Zealand businesses are usually required to display GST-inclusive prices when selling to consumers. There are exceptions for business-to-business sales.
Telecommunications Commissioner, Tristan Gilbertson says GST-exclusive pricing: “...is something we don’t see anywhere else in the retail space and creates the illusion of savings that don’t exist.”
Bundle guidelines
In November 2023, the Commerce Commission issued a series of guidelines for companies selling bundles of energy and broadband. A recent review found most of the companies selling bundles comply with the guidelines. In addition to Contact and Nova, Mercury, Electric Kiwi, Pulse Energy and 2degrees all offer bundles.
Gilbertson says the regulator is giving Contact and Nova an opportunity to do the right thing before it looks at taking action to fix consumer confusion.
In the past companies selling bundles would lure customers into contracts with broadband deals lower than market prices, in some cases close to breakeven pricing. Comparing broadband prices is relatively easy.
However, some bundles clawed back revenue by charging more than usual for electricity. Power pricing can be harder for consumers to understand. This practice appears to have stopped thanks to guidelines requiring greater clarity.
Working from home improves public service productivity
A survey of Public Service Association members found working from home improved productivity with 85 percent of respondents saying they get more done. Almost as many, 78 percent, say working from home improved their employers’ performance.
The survey comes as the government pressures public service workers to work from home less often.
Fleur Fitzsimons, assistant secretary for Public Service Association Te Pūkenga Here Tikanga Mahi says: "This is a government that talks repeatedly about improving outcomes and wants to make decisions based on evidence.
“The survey is exactly that - it shows that flexible work practices are good for organisations and the outcomes the government wants from the public service.”
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