Kordia still chasing trans-Tasman cable project

The remote controlled Southern Cross Fibre Optic cable vehicle in the Tasman Sea in 2000.

State-owned communications company Kordia will still present a trans-Tasman cable project to its board in September.

The statement came after Research and Education Advanced Network New Zealand (Reannz), an operator of a broadband network between universities and Crown Research Institutes, pulled out of a process that could have led to it spending $15 million to become a cornerstone tenant.

Kordia general manager of strategic development, Susie Stone, said Kordia had strong customer interest in the venture and significant wider support from the market.

"We fully understand Reannz's need to secure connectivity for the KAREN network when its current commercial arrangements expire in September," she said.

Kordia had always said its submarine cable could not be ready for service until 2011.

Kordia has not yet decided to go ahead with the project but it reiterated today that lower-cost international bandwidth was necessary for the Government's broadband policy.

"We are going to our board in September with a business case for the cable project as planned, and look forward to future engagement with Reannz once they have satisfied their immediate need for trans-Tasman capacity," Ms Stone said.

The cable project has been estimated to cost $200m. It would compete with the Southern Cross Cable.

- NZPA