Pacific Fibre

Pacific Fibre was a New Zealand-based telecommunications infrastructure company formed around a proposed trans-Pacific submarine communications cable. Its project was intended to create an alternative to the Southern Cross Cable, the principal undersea connection serving New Zealand at the time. The proposed system was designed to connect Auckland with Sydney and Los Angeles, giving New Zealand telecommunications providers, internet service providers, research networks, and other large users an additional international route for data traffic. The planned cable was described as approximately 12,750 kilometres long, although later reporting associated with a possible revival referred to a route of approximately 12,950 kilometres. The initial investment requirement was projected at about US$350 million. The commercial rationale was to increase international bandwidth, introduce more competition into the New Zealand market, and reduce reliance on a single major trans-Pacific cable system. Potential customers mentioned in connection with the proposal included Vodafone New Zealand, Australian internet service provider iiNet, and New Zealand's Kiwi Advanced Research and Education Network. Pacific Fibre selected TE SubCom, a subsidiary of TE Connectivity, in July 2011 to deploy the cable. Preparatory activity continued into 2012: permitting work was completed for sections in California and Australia, and marine route surveys began in March. In April 2012, the company announced that a United States customer had agreed to purchase connectivity services. Fundraising was expected to be completed in June, but the project ultimately failed to obtain enough investment. On 1 August 2012, Pacific Fibre announced that it could not secure the capital required to proceed and discontinued the planned cable. Chairman Sam Morgan said that the company had attracted meaningful investor support but had been unable to assemble the necessary investment in New Zealand and overseas. Paul Brislen of the Telecommunications Users Association described the cancellation as damaging for the New Zealand market, particularly because substantial effort and shareholder funds had already been committed. Pacific Fibre subsequently ceased operations. In November 2012, German entrepreneur Kim Dotcom announced an intention to revive the project through his company Mega. The proposed revival was associated with a cable linking Auckland, Sydney, and Los Angeles and requiring approximately NZ$400 million. Dotcom argued that Mega would need more bandwidth than the existing Southern Cross system and presented the concept as potentially supporting free broadband access for New Zealanders. Although the announcement received a positive response from some New Zealand technology commentators, questions were raised about whether United States allegations concerning alleged internet piracy could complicate the proposal. The revival did not result in a completed Pacific Fibre cable. Pacific Fibre therefore remained a proposed infrastructure venture rather than an operating cable network. Its significance lies in the debate it generated about international connectivity, competition, resilience, and bandwidth capacity for New Zealand. The company is associated with a group of New Zealand technology and investment figures, including Sam Morgan, Lance Wiggs, Rod Drury, David Kirk, Stephen Tindall, Peter Thiel, Michael Boustridge, and Mark Rushworth.

Pacific Fibre emerged in New Zealand as a proposed competitor to the Southern Cross Cable, which provided a major international telecommunications route for the country. The venture's objective was to build a new submarine communications system connecting Auckland to Sydney and Los Angeles. Such a route would have served both the New Zealand–Australia corridor and the longer trans-Pacific connection to the United States, potentially increasing capacity and giving customers an alternative path for international data traffic. The proposed system was expected to extend for approximately 12,750 kilometres and required an initial investment estimated at US$350 million. Its prospective customer base included telecommunications operators, internet service providers, and research and education networks. Vodafone New Zealand, Australian ISP iiNet, and the Kiwi Advanced Research and Education Network were identified among the customers or intended users associated with the proposal. The project was promoted as a way to encourage competition and improve the resilience and availability of international bandwidth in New Zealand. In July 2011, Pacific Fibre selected TE SubCom, a TE Connectivity company, to deploy the planned cable. The project then progressed to preparatory marine work. Permitting studies for California and Australia were completed by March 2012, after which route surveys began. In April, Pacific Fibre reported that a United States customer had agreed to buy connectivity services. The company expected to complete fundraising in June, but the investment round did not reach the required level. On 1 August 2012, Pacific Fibre announced that the cable would not be built because sufficient investment could not be secured. Chairman Sam Morgan said that the project had received useful support from investors but had failed to obtain the required funding in New Zealand and international markets. Paul Brislen of the Telecommunications Users Association characterized the cancellation as unfortunate for the New Zealand market, noting the resources that had already been spent pursuing the project. Pacific Fibre subsequently ceased operations. The concept received a potential second life in November 2012 when Kim Dotcom announced that his company Mega intended to explore reviving the project. The revived concept was described as a roughly 12,950-kilometre cable connecting Auckland, Sydney, and Los Angeles, with a capital requirement of about NZ$400 million. Dotcom argued that Mega's expected bandwidth needs exceeded the capacity available through Southern Cross and suggested that the project could support free broadband for New Zealand users. Technology commentators welcomed aspects of the idea, but concerns were expressed that United States allegations involving alleged internet piracy could make financing, permissions, or commercial participation more difficult. The revival did not result in a completed cable system. Pacific Fibre's operational history was consequently brief. It never became a functioning submarine cable operator, and its principal asset was an uncompleted infrastructure proposal. Nevertheless, the venture became an important reference point in New Zealand's discussions about international bandwidth, infrastructure competition, and dependence on limited overseas cable routes.

• 2012

  Route surveys commence

  [1]Pacific Fibreen.wikipedia.org

  Following permitting studies in California and Australia, marine route surveys began for the planned cable.

• 2012

  Project discontinued after funding shortfall

  [1]Pacific Fibreen.wikipedia.org

  Pacific Fibre announced that it could not secure sufficient investment and abandoned the planned cable, later ceasing operations.

• 2012

  Mega proposes a revival

  [1]Pacific Fibreen.wikipedia.org

  Kim Dotcom announced that Mega intended to explore reviving the Pacific Fibre concept with a larger proposed funding requirement and a route linking Auckland, Sydney, and Los Angeles.

• 2011

  TE SubCom selected for planned deployment

  [1]Pacific Fibreen.wikipedia.org

  Pacific Fibre selected TE SubCom, a TE Connectivity company, to deploy the proposed trans-Pacific submarine communications cable.

Pacific Fibre positioned itself as an alternative international connectivity provider for New Zealand, focused on adding competition, capacity, and route diversity alongside the Southern Cross Cable.

• Submarine communications cable

  Pacific Fibre trans-Pacific submarine cable

  The company's principal offering was a proposed submarine cable system connecting Auckland with Sydney and Los Angeles. It was intended to provide wholesale international bandwidth for carriers, internet service providers, and research and education networks, while competing with the Southern Cross Cable. The system was never completed or placed into commercial service.

• 2012

  Abandonment of the Pacific Fibre cable projectStrategy

  Background

  The company had selected a deployment contractor, undertaken permitting and route-survey work, and identified prospective customers, but did not raise enough capital to fund construction.

  Action taken

  Pacific Fibre discontinued the proposed cable on 1 August 2012 and subsequently ceased operations.

  Aftermath

  The project did not enter construction or service. A later proposal by Mega to revive the concept also failed to produce an operating cable.

  Initial projected investment. US$350 million (Project planning period, before cancellation in 2012)

  • Southern Cross Cable — No specific public reaction is identified in the cited material; the proposed Pacific Fibre system was intended to compete with Southern Cross.

  Source

• 2012

  Proposed Mega revivalStrategy

  Background

  After Pacific Fibre abandoned the project, Kim Dotcom said that his company Mega would explore reviving the cable to support its anticipated bandwidth requirements.

  Action taken

  Mega proposed a cable between Auckland, Sydney, and Los Angeles, with the project described as requiring approximately NZ$400 million.

  Aftermath

  The revival remained a proposal and did not lead to a completed Pacific Fibre cable.

  Proposed revival funding requirement. NZ$400 million (Revival proposal announced in November 2012)

  Source

• 2012

  Marine route surveys begin for Pacific Fibre project[1]Pacific Fibreen.wikipedia.org

  Other

  After permitting studies for California and Australia were completed, marine route surveys began for the proposed cable system.

• 2012

  Pacific Fibre announces US connectivity customer[1]Pacific Fibreen.wikipedia.org

  Other

  The company reported that a United States customer had agreed to purchase connectivity services while fundraising for the project was still underway.

• 2012

  Pacific Fibre discontinues proposed submarine cable[1]Pacific Fibreen.wikipedia.org

  Other

  Pacific Fibre said it had been unable to secure sufficient investment and discontinued its planned cable. The company later ceased operations.

• 2012

  Kim Dotcom proposes reviving Pacific Fibre project[1]Pacific Fibreen.wikipedia.org

  Other

  Kim Dotcom announced a possible revival through Mega, proposing a high-capacity cable linking Auckland, Sydney, and Los Angeles. The proposal did not produce an operating cable.

• 2011

  Pacific Fibre selects TE SubCom to deploy proposed cable[1]Pacific Fibreen.wikipedia.org

  Other

  Pacific Fibre selected TE SubCom, a TE Connectivity company, as the planned deployment contractor for its proposed trans-Pacific submarine cable.

1. 1Pacific Fibreen.wikipedia.org