TPG invests in Australia-US subsea cable capacity
TPG has today announced its intent to secure capacity on the new Hawaiki subsea cable connecting Australia and New Zealand to the United States.
The new 14,000-kilometre, 20Tbps cable will connect from Sydney, Australia, to Whangeri, New Zealand, and up to Hawaii and the west coast of the US. It is currently due to be completed in late 2015.
The multimillion-dollar deal is expected to cost TPG between AU$10 million and AU$14 million in capital expenditure over three years from 2014. It will initially offer TPG up to 3Tbps of capacity.
TPG's executive chairman David Teoh said that the deal is important for the growth of TPG's businesses.
"With the continued growth in the TPG Group's consumer broadband, corporate, and wholesale businesses, international connectivity is an important component of TPG's widespread telecommunications infrastructure," he said in a statement.
"Hawaiki has a team with considerable experience in fibre cable systems, and this project represents an excellent opportunity to give us a new high-quality international link direct to the US, complementing existing international links, which include TPG's own Sydney-to-Guam undersea cable system."
The cost of the Hawaiki project is expected to be around AU$350 million.