Some of NZ’s biggest names in tech investment have announced a preliminary plan to develop a new high speed international broadband service, in competition with the current incumbent, Southern Cross.  Pacific Fibre has been set up by Stephen Tindall, Sam Morgan and Rod Drury, together with John Humphrey, Mark Rushworth (ex-Vodafone) and Lance Wiggs.

I’ve long argued that what NZ lacked wasn’t fast broadband to the home, farm or small town.   If those communities want it, let them pay for it themselves (perhaps through a locally subsidised utility since it isn’t economic outside the CBDs and central suburbs of NZ’s significant cities). What we do need as a nation is superfast, attractively-priced telecommunications pipes between our major centres and the rest of the world.

It’s that need Pacific Fibre plans to address. At this stage, all they really have is an idea and an intention, so activity is focused on planning, partnering and funding:

The group is looking to secure funding and build a 5.12 Terabits/sec capacity fibre cable to be ready in 2013 connecting Australia, New Zealand and the USA – the initial proposal is a cable which will deliver five times the capacity of the existing Southern Cross system.

I’m told by chums in the broadband business that Southern Cross has plenty of capacity available now and in future, through relatively straightforward upgrades, but maximises its profits through high pricing, which discourages heavy broadband users such as film or online services being based in NZ. Pacific Fibre may simply be a PR pressure play against a de facto monopoly, but so far it looks real enough.  I do hope that a viable alternative can get traction.  Competition is always better than an unregulated monopoly - not just for price but also for quality, service and, when things go badly wrong, for back-up.

So, Rod & Co., I’m keen. Call me.

Disclosure: My family trust has been a long-time shareholder in Telecom, part-owner of Southern Cross.  However, the trust’s investment manager has sold out now.

Update: Lance Wiggs has posted some technical details on the PF website.