UnitedNetworks moves on bandwidth

By RICHARD BRADDELL

UnitedNetworks will be the first electricity lines company to become a telecommunications carrier, through a $30 million scheme to build and run high-capacity fibre-optic loops in the Auckland and Wellington central business districts.

The networks are expected to be operational early next year, with a capacity of up to 1 gigabit a second.

Chief executive Dan Warnock said the ultra-high bandwidth networks would wholesale to any telecommunications carrier, internet service provider, applications service provider or anyone needing high bandwidth.

Confidential talks with just about anybody who mattered had indicated that the capacity would probably be sold.

Mr Warnock said a minimum of trenching would be required since United would thread cables through existing electricity ducts, and in Auckland through gas ducting acquired through the takeover of Orion's gas network this year.

The Auckland CBD network would link directly to the Southern Cross cable due to be operational towards the end of this year and which would boost telecommunications capacity into New Zealand from 0.5 gigabits to 40 gigabits.

Mr Warnock said the initial outlay would be supplemented as demand required.