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iiNet ups Southern Cross capacity from 20Gbps to 200Gbps

iiNet is splashing out on international cable capacity, forging a deal to provide it with 10 times more capacity from Southern Cross Cables.
Written by Suzanne Tindal, Contributor

iiNet has increased the international capacity that it sources from Southern Cross Cables by 10, the company announced today.

The internet service provider (ISP) has signed an agreement upgrading the available capacity supplied by Southern Cross from 20Gbps to 200Gbps.

iiNet won't be using all of that capacity at once, according to iiNet CTO John Lindsay. The company has signed an Indefeasible Right of Use (IRU) for the 200Gbps, which involves a fixed payment to secure the capacity, and a variable payment as the ISP turns on more capacity. Its requirement is increasing by about 1 per cent each month, he said.

An extra 20Gbps will be turned on next month, Lindsay said, with progressively more turned on as the company needs it. The 200Gbps will probably last another two to three years, depending on demand for international content, and whether subsea fibre project Pacific Fibre gets off the ground.

The news comes as doubts hang Pacific Fibre, which has had difficulty obtaining funding. iiNet signed up for capacity on the new cable, which was expected to go live in 2014.

Lindsay said that iiNet would still like capacity on Pacific Fibre, as Southern Cross is providing its immediate needs and Pacific Fibre isn't expected to come online until 2014. iiNet also has an agreement with Pipe Networks cable PPC-1 for capacity.

iiNet CEO Michael Malone said in a statement that the upgrade was due to iiNet's expansion. It swallowed rivals TransACT and Internode in quick succession after also acquiring Netspace and AAPT's consumer customer base.

"The continuation of our growth strategy, following the acquisitions of TransACT and Internode, has cemented our position as the second-largest DSL provider in Australia," he said.

"This growth has translated into improved supply agreements and commercial returns, making way for the delivery of even more innovative products and services."

Updated at 3.47pm, 24 July 2012: added comment from iiNet.

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