Chinese Companies to Build Trans-Tasman Cable

September 22, 2011 - According to the Austrialian Communications Day, Chinese companies are planning to build a new Trans Tasman submarine internet cable between New Zealand and Australia.

The new Trans Tasman cable project will be led by Axin Ltd, the New Zealand and Australia market representative of China Communications Service of which China Telecom owns 51%.

Axin Ltd is teaming up with Huawei Marine to build the US$100 million Trans Tasman internet cable between Sydney and Auckland.

According to Communications Day, financing for the cable has already been approved by the Export-Import Bank of China and work could start by the end of this year.

With this new Trans Tasman cable project, Chinese telecos are entering into the fast growing broadband internet markets in Australia and New Zealand.

Currently, there is only one submarine cable connecting New Zealand with Australia and the rest of the world, i.e., the Southern Cross Cable Network. Another submarine cable linking New Zealand, the 12,000 km Pacific Fibre connecting Australia, New Zealand and the United States, is still underway and expected to be ready for service by the first quater of 2014.

The new Trans Tasman cable will enhance the network diversity and resiliance of New Zealand's international telecommunication services,  but on the other hand, bring competition to the internet markets in Australia and New Zealand and put downward pressure on the price of international capacity.