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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news