Perth-based ISP, iiNet, has inked a deal with Pacific Fibre for international capacity through an impending fibre link.
International ISP, Pacnet, teamed up with Pacific Fibre to build a $US400 million fibre link between Australia, New Zealand and the US one year ago. The link is due to be completed by 2013 with commercial services to be available the following year.
There are currently only five major Asia to US cables, including the PPC-1 and the Southern Cross link which Optus partially.
According to iiNet CEO, Michael Malone, the new agreement will provide greater capacity on some of the busiest international routes for Internet traffic to iiNet customers.
“As a foundation customer with Pacific Fibre, our customers will enjoy some of the fastest paths when accessing international content both now and well into the future,” Malone said in a statement. “We have always supported competition in the International cable space, and the additional capacity and choice Pacific Fibre is delivering can only be good for both our business and the industry in general.”
The goal of the Pacific Fibre cable system is to reduce the cost of purchasing capacity from the US for Australian and New Zealand ISPs which would, in turn, lower prices for consumers signing onto broadband plans.
But some ISPs had cast doubt over whether the new fibre link would actually have an impact on international capacity costs.