TOM PULLAR-STRECKER August 01, 2012
Entrepreneurs Sam Morgan, Rod Drury and Sir Stephen Tindall have pulled the plug on Pacific Fibre, which had hoped to build a communications cable between New Zealand, Australia and the United States.
It would have competed with the Telecom half-owned Southern Cross Cable and there were hopes it could have led to broadband plans with higher data caps.
In a statement, chairman Sam Morgan said the company had failed to raise the required $US400 million ($380.48m).
It was an "audacious thing to try and do" and the global economic environment had not helped, he said.
"We've spent millions of shareholder funds trying to get this done and despite getting some good investor support we have not been able to find the level of investment required in New Zealand initially and more broadly offshore."
Chief executive Rod Drury said he could not see how the government's $NZ1.35 billion investment in ultrafast broadband made sense unless the cost of international bandwidth was greatly reduced.