Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Govt signs $65 million contract on new international cable

Hon Steven Joyce

Minister of Science and Innovation

Hon Amy Adams

Minister for Communications and Information Technology


1 July 2014 Media Statement
Govt signs $65 million contract on new international cable

Government-owned company Research and Educational Advanced Network New Zealand Ltd (REANNZ) has entered into a $65 million anchor tenancy contract with Hawaiki Cable Ltd for its proposed new international telecommunications cable, Science and Innovation Minister Steven Joyce and Communications and Information Technology Minister Amy Adams announced today.

The Government’s whole of contract contribution secures a 25-year anchor tenancy on the cable for REANNZ, which operates New Zealand’s high-performance research and education broadband network.

The total cost of the tenancy includes an initial contribution of $15 million and annual fees over the 25-year period.

The Government has provided the $15 million contribution from an appropriation set aside for purchasing an anchor tenancy on a new trans-Tasman and trans-Pacific submarine cable. REANNZ will meet the annual fees out of its existing revenues.

The agreement is conditional on Hawaiki obtaining sufficient presales contracts from other telecommunications companies.

“This agreement is an important step towards gaining a second international cable serving New Zealand,” Ms Adams says.

“Building a new cable will further increase the resilience of New Zealand’s international telecommunications links and raise the level of competition.

“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.”

Mr Joyce says the cable will add more capacity to meet the growing requirements of New Zealand’s research, education and innovation communities, as well as commercial traffic.

“REANNZ needs dedicated capacity that can handle huge data volumes, and provide high levels of reliability,” Mr Joyce says.

“The tenancy on the new cable will provide more capacity for its members to take part in global research projects such as the Large Hadron Collider and the Argonne Leadership Computing Facility.”

The Hawaiki Submarine Cable is planned to link New Zealand with Australia and the United States, with the potential to provide links with a number of Pacific Islands. At this stage, it is expected to be operational in 2016.

The cable will supplement the existing Southern Cross Cable system, which has the capacity to serve New Zealand’s commercial international traffic requirements until at least 2020.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news