Perth-based internet service provider iiNet has chosen SubPartners as the likely developer of the next submarine cable connecting Perth with Asia.
SubPartners is one of three companies proposing to construct a submarine cable, but developers acknowledge only one of the projects is likely to proceed because of limited customers needing capacity on international submarine cables.
iiNet has put its faith in SubPartners getting its project off the ground by signing a memorandum of understanding with the company - stating it will buy capacity on its cable once completed.
The agreement strengthens SubPartners’ proposal by proving to investors it already has customers interested.
It is expecting to have its cable ready for service by December 2015.
iiNet has also signed a memorandum of understanding for capacity on Hawaiki Cable Limited’s proposed cable planned for between Sydney and the United States via Whangarei in New Zealand and Hawaii - also planned for completion in late 2015.
iiNet chief executive officer Michael Malone said ownership of capacity on international submarine cables gave the company a unique and innovative opportunity to bring more diversity to its international network and reduce ongoing costs.
SubPartners was formed in 2010 on the intention to invest $450 million in submarine cables from Australia. It’s headed by founder of data centre operator NEXTDC Bevan Slattery.
The two other companies proposing submarine cables between Perth and Asia are Trident Subsea cable and Nextgen Networks subsidiary Australian Submarine Cable.
