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Sales and capacity jump for Telecom cable

By Phil Boeyen, ShareChat Business News Editor

Monday 12th February 2001

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Telecom's (NZSE: TEL) Southern Cross Cable has announced another US$443 million in sales and says it plans to upgrade the cable's carrying capacity.

Southern Cross spokesman, Ross Pfeffer, says as a result of its third customer meeting in Hawaii last August bandwidth sales have increased US$443 million to take total capacity sales to over US$1.6 billion.

The cable business has also announced it is adopting a new higher capacity technology called Dense Wave Division Multiplexing (DWDM) that is four times fast than what is currently being used.

Mr Pfeffer says that increases the potential capacity for the cable from 120 gigabytes per second to 480 gigabytes per second.

"When Southern Cross entered into service in November 2000 we expected capacity to be exhausted by end-2002. We now have the ability to provide for the Internet bandwidth needs of the region for the next four or five years," says Mr Pfeffer.

Mr Pfeffer says the company plans to double capacity to 240 gigabytes per second early next year and then upgrade further as growth demands.

The company has also announced that its second Hawaii-mainland US link will enter into service at the beginning of March, completing the 30,500km loop network, and offering the only fully protected capacity on the most direct route between Australasia and the USA.

Southern Cross Cables Limited is 50%-owned by Telecom New Zealand. Cable & Wireless Optus has 40% and Worldcom 10%. Last year Telecom said it was expecting a dividend of around US$100 million from the cable company in the current financial year.

Telecom is due to announce its half-year result before the market opens this Thursday.

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