Federated Farmers welcomes latest internet cable proposal

Greater competition to the Southern Cross Cable, currently the only international submarine internet cable linking New Zealand to the world, should spark innovation while cutting internet costs.

“We may go from a monopoly to having three submarine cable broadband providers. That’s got to be good in anyone’s book,” says Anders Crofoot, Federated Farmers Telecommunications spokesperson.

“Chinese-backed Axin is now confirmed as the latest company lining up to build a new submarine internet cable. It joins Pacific Fibre, which is raising capital for a planned $400 million broadband cable linking New Zealand and Australia to the United States.

"We know broadband is the next big enabler. That's why we've worked closely with Government to get $300 million invested in rural broadband to prevent a urban/rural digital divide from emerging.

“More competition usually helps to spur innovation while reducing costs. Given broadband is to this century what electricity was to the last, it’s a case of working to get more, sooner.

“Given rural speeds are slower than urban and generally cost more, lowering costs on the trans-Pacific connection may spur innovation while lowering entry costs for internet service providers to supply the rural market.

“We have no doubt the internet could spark a marketing and productive revolution by closing the perceived distance between markets, consumers and our farms.

“Federated Farmers is very interested to sit down with Axin as well as Pacific Fibre to see where they see things heading,” Mr Crofoot concluded.