Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Another Southern Cross Price Drop

Another Southern Cross Price Drop

Southern Cross prices have again fallen and the company continues to expand its international capacity as it continues to upgrade the network.

“We have reduced our capacity prices by another 20%”, said Sales and Marketing Director Ross Pfeffer. “This will be our 10th major price reduction since 2000 and over the period our price decline has averaged more than 22% per year.


“It’s been pleasing to see big increases in data caps and declines in retail data cost for internet users in both Australia and New Zealand over the last year. Our continued initiatives to increase supply and reduce price are designed to encourage this process and to support the needs of Australia's NBN and New Zealand's UFB” Pfeffer noted. The Southern Cross Network provides uninterrupted hi-speed connectivity to US based internet content. Constructed as a protected twin cable network of 28,500 kilometres of undersea cable the Southern Cross cable network has become a major regional asset for reliable high-speed broadband.

The latest price decline marks the second stage of the eighth major capacity expansion programme since 2001 and it is due for completion in February. This Stage is based on Ciena’s 40Gbps transmission equipment and takes total lit capacity on the Southern Cross Network to 2 Tbps.

The third stage of the current expansion programme is being implemented concurrently and it is based on Ciena's 100 Gbps transmission equipment. 100G technology is already installed on some network segments and will take lit capacity to 2.6 Tbps by June 2013. Ross Pfeffer commented that, “the increasing simplicity of equipment upgrades provides Southern Cross with the ability to frequently and rapidly expand capacity. We currently have the potential to go to at least 7 Terabits per second, about 30 times higher than our original design capability.”

“Our capacity potential will increase dramatically over the next few years when transmission equipment speeds are expected to quadruple. With ongoing and dramatic advances in technology Southern Cross has the ability to stay well ahead of demand over the longer term”.

While continuing to reduce cost and to expand supply, Southern Cross remains dedicated to continuous circuit availability. “Our protected circuits continue to provide 100% availability and the performance of the six fibre pairs and 500 repeaters on the diverse cable network is better today than when constructed more than 10 years ago” he noted. www.southerncrosscables.com

Further Information

Private company owned by Telecom NZ, Singtel-Optus and Verizon Business

Offices in Bermuda, Wellington, Sydney and Auckland

Dual Cable network constructed between 1998 and 2000.

28,500 Kilometers of submarine cable with 3 fibre pairs

Construction and upgrade cost exceeds 1.4B USD

Ring Network Architecture based on completely diverse submarine cables and landing stations

12 Access points: (2 in NZ, 3 in AU, 1 in Fiji, 2 in Hawaii, and 1 in Oregon, 1 in Washington state and 2 in California)

Major suppliers: o Cables and Repeaters

Alcatel and Fujitsu; o Transmission Equipment:

Alcatel and Xtera (10Gbps)

Ciena (40Gbps and 100Gbps)

Consistently ranked the most preferred submarine cable system in the Asia Pacific Region (according to customers participating in an annual satisfaction survey conducted by Neilson).

Eight capacity expansion programmes since 2000, from 80 Gbps to 2 Tbps in January 2013 and 2.6 Tbps by June 2013

Website: www.southerncrosscables.com

Social media: o www.facebook.com/SouthernCrossCable

o Twitter: SXCables

Ten price reductions since 2001. Price has fallen at an annual average of 21% over the total period.

95% of active ANZ <–> US Capacity is operated by our customers in a fully protected configuration

Southern Cross Market Principles:

1. Take advantage of technological improvements to expand capacity well ahead of demand and to lower the cost of supply.

2. Offer prices to support hi-speed broadband that are based on both competitive market forces and the reducing cost of supply.

3. Apply competition based prices to all market segments (e.g. we have kept our prices for the NZ-US market no higher than our prices for the AU-US Market where there are four competing cable suppliers)

4. Enhance the automated protection of the dual cable network to ensure continuity of protected circuits.

5. Promote products that use the inbuilt protection of the Network.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news