Concern is being raised that a lack of competition for the existing fibre optic cable will lead to price monopolies in New Zealand.
It comes after the announcement that a second undersea internet cable, which would have linked the United States, Australia and New Zealand, will not go ahead.
Paul Brislen of the Telecommunications Users’ Association of New Zealand (TUANZ) says that only having one cable could have a negative impact in years to come.
“When you factor in the Government’s ultra-fast broadband project and the rural broadband initiative plus everything that’s going on in Australia as well, demand will go through the roof in the next few years, and without a second cable I think New Zealand will begin to suffer,” he says.
The current Southern Cross connection is 50 per cent owned by Telecom.
Watch the video for Firstline’s interview with Paul Brislen