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

 


Government to commit $65M to Hawaiki Cable

Government signs $65 million anchor contract for new international cable

By Suze Metherell

July 1 (BusinessDesk) - The government has entered a conditional 25 year contract with Hawaiki Cable worth $65 milllion to secure a new international telecommunications cable capable of handling huge data loads needed for research and education.

The $65 million the government will pay includes an initial $15 million contribution and annual tenancy fees over the 25-year period paid to Hawaiki, and is conditional on other telecommunications companies entering pre-sale contracts. The tenancy fees will be paid by Research and Educational Advanced Network New Zealand, REANNZ, a state-owned company.

Announcing the contract today, science and innovation minister Steven Joyce and communications and information technology minister Amy Adams said the agreement was an important step towards securing a second international cable for New Zealand.

The Hawaiki cable will link New Zealand to Australia and the US with further potential links to a number of Pacific Islands. It is expected to come online in 2016. The existing South Cross Cable, which is half-owned by Telecom, is expected to meet New Zealand’s requirements until 2020.

"The government is pleased to see signs of increasing competition in New Zealand's international cable market and will continue to support options that are on track to achieve this goal," Joyce said in a statement.

Last September the government offered $15 million and to take an anchor tenancy on a new cable, provided it could handle turbo data for research and education traffic.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news