Pacific Fibre shuts down
The company that planned to build a 13,000km fibre-optic cable to Australia, thereby improving internet speeds in New Zealand, has shut down.Siobhan Keogh | Wednesday, August 01 2012 | 1 Comment
The company that planned to build a 13,000km fibre-optic cable to Australia, thereby improving internet speeds and costs in New Zealand, has shut down.
The board of Pacific Fibre today "resolved to cease operations", because the company had not been able to raise the funds required to complete the project.
“A 13,000km cable is clearly an audacious thing to try and do. We were fortunate to find supportive shareholders, fantastic staff and early customer support from the likes of REANNZ and Vodafone,” Pacific Fibre chairman and Trade Me founder Sam Morgan said.
“We’ve spent millions of shareholder funds trying to get this done and despite getting some good investor support we have not been able to find the level of investment required in New Zealand initially and more broadly offshore.”
Morgan said everyone at the company was "hugely disappointed" that the company had not been able to finish its project.
Pacific Fibre co-founder Rod Drury said he could not see why the Government was investing in ultra-fast broadband until the price of international bandwidth was greatly reduced - something the company had planned to do.
"The high cost of broadband in New Zealand makes it hard to connect globally and it is this market failure, not a technical failure, that we tried hard to solve,” Drury said.
Pacific Fibre launched in March 2010.
Broadband access is woefully slow and expensive here - I speak as an expat businessperson returning to live in Auckland after 20 years. If you are involved in video or multi-media, you are at a distinct disadvantage being based in New Zealand.
Why oh why are we buying ferraris (fibre optic) when all we can do is drive around our neighbourhood? This is a call to the NZ government to invest in the nation's future. We have a wealth of bright minds coming out of universities who represent a further waste of resources when they are forced to leave New Zealand to pursue digital media careers elsewhere. There is no reason why they should have to.
Posted by Chris at 15:07:42 on August 1, 2012
How to choose the best tablet for you
101 great websites:
You haven't heard of yet
We ask the pros for building tips