KEY POINTS:
Kordia's partner in a new trans-Pacific fibre optic cable - ASX-listed Pipe International - seems to have jumped the gun with its upbeat appraisal that the joint venture will be up and running by 2010.
Kordia's plans are understood to be linked to Government support and yesterday telecommunications minister David Cunliffe said he welcomed anything that added to capacity and New Zealand access to overseas markets.
Cunliffe's office said it was not clear whether the proposals announced this week are for a stand-alone commercial venture or are contingent on Government funding.
But a spokesman said any judgment on Government backing would be made by Kordia's shareholding ministers Michael Cullen or Trevor Mallard.
Yesterday Kordia played down the deal, which will give telecommunication operators such as internet service providers an alternative to the Southern Cross Cable partly owned by Telecom.
"It is a memorandum of understanding and there is never a guarantee that a memorandum of understanding will lead to a proposal going ahead," said Kordia spokeswoman Emma Morrison.
Pipe International is not detailing the make-up of the joint venture.
There will be widespread interest in Government support for the state-owned enterprise competing with the Telecom joint venture in Southern Cross.
Kordia's purchase of telecommunications company Orcon last year has seen the SOE compete more directly with retail sales.
In the past some had called for the SOE to spur Telecom into investing in infrastructure.
But under past chief executive Geoff Lawson, Kordia - under its former name of Broadcast Communications Limited - formed allegiances with Telecom in ventures using its surplus radio frequencies.
The question is whether Kordia is adopting that role now and whether the role would continue if National wins the election.
On Monday Cunliffe issued a statement saying he welcomed any move to increase New Zealand broadband connectivity.
The new pipeline to Australia and on to Guam would lessen the reliance that New Zealand has on the current cable across the Pacific to the United States.
