Kordia coy on cable deal

5:00AM Wednesday April 09, 2008
By John Drinnan

Kordia's partner in a new trans-Pacific fibre optic cable - ASX-listed Pipe International - seems to have jumped the gun with its upbeat appraisal that the joint venture will be up and running by 2010.

Kordia's plans are understood to be linked to Government support and yesterday telecommunications minister David Cunliffe said he welcomed anything that added to capacity and New Zealand access to overseas markets.

Cunliffe's office said it was not clear whether the proposals announced this week are for a stand-alone commercial venture or are contingent on Government funding.

But a spokesman said any judgment on Government backing would be made by Kordia's shareholding ministers Michael Cullen or Trevor Mallard.

Yesterday Kordia played down the deal, which will give telecommunication operators such as internet service providers an alternative to the Southern Cross Cable partly owned by Telecom.

"It is a memorandum of understanding and there is never a guarantee that a memorandum of understanding will lead to a proposal going ahead," said Kordia spokeswoman Emma Morrison.

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