Feeds

Submarine cable plan sinks without trace

Pacific Fibre folds as funders flee

Boost IT visibility and business value

Pacific Fibre, a company formed to build a submarine cable linking the USA, New Zealand and Australia, has called it a day after failing to find the funds it needed to build the project.

“We believed funding for these long term infrastructure investments would have been more readily available and were confident the business case was solid,” said Chairman Sam Morgan. “We feel like we’ve done everything we can to succeed and we are all hugely disappointed that we have not managed to get there.”

The company says it has burned through “millions of shareholder funds” in its attempts to find cash for the project, but that neither New Zealanders or offshore investors were sufficiently interested in the project.

One of the project's aims was to bring more bandwidth to New Zealand, the company's home. Pacific Fibre executives warn that the company's failure makes New Zealand's investment in broadband, which is planned to reach 97.8% of the nation under the government's NZ$1.35 billion Ultra-Fast broadband policy, less likely to succeed as the cost of landing data in the nation remains high.

iiNet was an investor in the project at CTO John Lindsay told The Reg's Natalie Apostolou "We're disappointed to see Pacific Fibre shut their project down. It is always amazing to see submarine cables completed, when you consider the complexity of land access, marine permits, crossing other cables and under water infrastructure, putting delicate electronic and optical equipment under five kilometres of ocean, it's easy to forget that it also has to be funded for hundreds of millions of dollars."

"iiNet has always understood that this cable, like all proposed cables, had a risk that it would not be completed by 2014. We have more than sufficient capacity options available to ensure that this does not impact us. I look forward to seeing what project Mark Rushworth does next. I'm sure it will be exciting." ®

Boost IT visibility and business value

More from The Register

next story
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Speak your brains on SIGNAL-FREE mobile comms
Readers chat to the pair who flog the tech
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.