New Zealand unit of Vodafone inks deal with Pacific Fibre

The New Zealand unit of Vodafone Group PLC said Monday it has inked a deal with Pacific Fibre for the supply of international bandwidth on the planned Pacific Fibre cable system.

New Zealand's current connection relies on just one fiber cable, the Southern Cross cable, which gives owners Telecom Corp. of New Zealand, SingTel Optus and Verizon Business the right to set pricing for retailers.

Auckland-based, privately owned Pacific Fibre plans to challenge that position by building a 12,750 kilometer cable connecting Sydney and Auckland with the U.S. The undersea cable system is scheduled to be launched by early 2014.

Under the 10-year deal, Vodafone will become Pacific Fibre's biggest New Zealand customer, Vodafone and Pacific Fibre said in a joint release. The value of the deal was not disclosed.

Earlier this year, Pacific Fibre announced it had agreed on key commercial terms for a contract with New Zealand government company Research and Education Advanced Network New Zealand Ltd., or REANNZ.

"Foundation customers such as Vodafone and REANNZ have championed the cause of ensuring international bandwidth competition. Their commitment will have a direct impact on bringing faster service and better rates to the region, helping to break the monopoly on capacity pricing into and out of New Zealand," said Pacific Fibre Chief Executive Mark Rushworth.

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