Kordia Chairman David Clarke says that the Board is very pleased with the progress being made on Kordia's development of a project to deploy a trans-Tasman submarine cable, and confirms that work will continue to ramp up over the next six months or so.
The new cable will reduce New Zealand's connectivity risk on international routes to Australia and beyond. The introduction of the OptiKor cable brings competitive pressures, lowering prices for New Zealand businesses and broadband users. The new cable will mean more direct and improved services, and will de-risk business access to Australia.
"Kordia's intention is to deliver the economic benefits of fast, competitively-priced international access to all New Zealanders," says Clarke.
The structural limitations of New Zealand's international cable market provide a unique market opportunity for OptiKor. While the in-situ cables have capacity and upgrade potential to meet likely short-term demand, a lack of competitive choice and options for physical diversity have contributed to the growing support for an alternative service provider.
"Our proposed cable will take the most direct, quickest and least expensive route for New Zealand customers. OptiKor is a better proposition for New Zealand than any other cable project - we are the most direct route to Australia and through our partners, we can deliver New Zealand traffic all the way to the United States," Clarke says.
"And of course, Southern Cross has dropped its prices in excess of 75 per cent in the 18 months since we announced our plans. The Kordia project has already provided a catalyst to encourage competition and lower prices for New Zealand customers."
Clarke says the key objective is to award a contract in early 2010 for the installation of the cable. "In the meantime, we are working closely alongside foundation customers and other significant partners to deliver a truly customer-centric and economically sustainable project."