Vodafone signs multimillion dollar 10 year deal with Pacific Fibre
Vodafone has signed a 10-year, million-dollar deal with Pacific Fibre.
Vodafone has signed a 10-year deal with Pacific Fibre for the supply of international bandwidth, making it Pacific Fibre's biggest New Zealand customer.
Pacific Fibre is the company behind the bid to build a second high capacity international fibre optic cable out of New Zealand by 2014.
The cable will connect New Zealand to Australia, and then to the United States and is set to rival the Southern Cross Cable, 50% owned by Telecom.
Pacific Fibre investors include Richlisters Rod Drury, of Xero, Sir Stephen Tindall and Trademe's Sam Morgan, and the company estimates the cable will cost a total of $US400 million.
The multimillion dollar deal with Vodafone will see it become Pacific Fibre's largest New Zealand customer and follows the recent $NZ91 million multi-year deal with REANNZ and a 10-year deal with Australian ISP iiNet.
Vodafone chief executive Russell Stanners said in a statement that Pacific Fibre brought much needed competition to the New Zealand market and the deal would help break down the digital divide between New Zealand and the rest of the world.
"This deal will allow us to scale our customer offers over the next 10 years delivering the quality and quantity of capacity that our customers neew now and into the future."
Pacific Fibre chief executive Mark Rushworth said in the statement that foundation customers such as Vodafone and REANNZ had 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."
Sir Stephan Tindall said in the statement that building Pacific Fibre moved New Zealand closer to the United States.
"It's like parking New Zealand off the West Coast of America, removing the tyranny of distance. It will help foster future innovation and greater economic development for New Zealand."
Alex Walls
Mon, 22 Aug 2011
Mon, 22 Aug 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Vodafone signs multimillion dollar 10 year deal with Pacific Fibre
16494