Vocus boosts Southern Cross cable capacity tenfold

Vocus has increased its Southern Cross Cable capacity tenfold, securing long-term access to trans-Pacific bandwidth between New Zealand, Australia and the United States. The move positions the company to handle strong growth in wholesale and enterprise internet demand until 2030.

The capacity is secured for the life of the cable, which is contracted until November 2030. Vocus describes the Southern Cross Cable’s redundant and protected design as a valuable and resilient asset for high-reliability services.

Tenfold boost in trans-Pacific bandwidth

The Southern Cross Cable sells capacity to service providers, with larger buyers paying a lower unit price. By purchasing in bulk, Vocus can access competitive rates and resell bandwidth to smaller carriers at prices below what they would pay directly.

Meeting wholesale and enterprise demand

This wholesale approach benefits both Vocus and its customers, offering cost-effective access to international connectivity. The model is sustainable as long as Southern Cross’s pricing structure remains unchanged, which industry observers consider likely.

The move speaks volumes about the growing demand for international data capacity out of New Zealand and hints at the likely success of the Tasman Global Access project.

Here's the official press releaseVocus says it aims to lift its Southern Cross capacity by 10 times.

Sydney-based Vocus entered into an agreement to buy extra capacity on the undersea link between New Zealand, Australia and the US over a six-year period, beginning from December this year, it said in a statement.

When fully-allocated that will increase the firm’s existing capacity by almost 10 times to ensure it “will continue to meet the rapid growth in internet data demand,” it said. The capacity is for the life of the cable, which is currently until November 2030.

“This significant increase in capacity enables Vocus to continue to leverage the high growth in data demand from the wholesale and enterprise sectors,” chief executive James Spenceley said. “Given its redundant and protected nature, Southern Cross capacity is a valuable asset and key differentiator for Vocus.”