Kordia has signed a memorandum of understanding with Australia's Pipe Networks to build a new, private fiber-optic cable that will link New Zealand and Australia.
The cable will be known as PPC-2 and its construction will follow the building of PPC-1, a cable linking Sydney and Guam, by Pipe Networks.
The new cable will leverage PPC-1, Pipe Networks says in a media release announcing the project.
"Pipe International's Sydney landing station was designed to co-locate the PPC-2 system, whilst the PPC-1 cable system has two additional pairs of fiber installed to a branching unit in the waters 120km east of Sydney."
Pipe managing director Bevan Slattery says in the release that "This investment in the additional pairs of fiber will allow any new New Zealand-Australia cable to simply interconnect to those spare pairs which will already be connected to our landing station in Sydney.
"As a result, this negates many of the costs, timing and permitting issues associated with landing PPC-2 into Australia."
In the release, Kordia CEO Geoff Hunt says "This MoU signals a change for New Zealand that will help boost our economy and enable us to compete globally by providing competition on the trans-Tasman capacity route."