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

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news