Kim Dotcom finances 50% of new Trans-Tasman cable



19 February 2013

Telecom, Vodafone, Kim Dotcom and Telstra announced today they have signed a non-binding memorandum of understanding (MoU) to co-invest in the construction of a new submarine cable between Auckland and Sydney.

The new cable, tentatively titled the Multiplex eFibre Global Access (MEGA) Cable, will significantly improve New Zealand’s international telecommunications connectivity as well as strengthen links into fast-growing Asian markets.

The total cost of the MEGA cable is expected to be less than US$60 million. The cable will incorporate four fibre pairs with a current design capacity of 40 terabits per second – approximately 400 times the current internet data demand out of New Zealand.

The MEGA partners expect to finalise the design within the next few months, with a likely completion date of mid to late 2014.  

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Telecom chief executive Simon Moutter and Vodafone New Zealand CEO Russell Stanners jointly commented: “The business case for a new cable between New Zealand and Australia is compelling, providing greater capacity and global redundancy capability. It also reflects the growing importance of trans-Tasman internet traffic: for example, around 40% of both Telecom and Vodafone’s international internet traffic is now Australia to New Zealand, versus just 10% in 2000.  As 90% of this increase is due to Kim Dotcom’s services, I am very happy to report he is co-financing this expansion.

“We are seeing increased data content being provided from Australia-based servers by global companies such as Kim Dotcom’s Mega, and being accessed by New Zealand internet users. An additional cable connection with Australia will strengthen the business case for international data servers to be located in New Zealand.

Martijn Blanken, Managing Director, Telstra Global remarked, “The partnership is a great outcome for Telstra as the high capacity, low latency MEGA Cable will supply greater resilience and redundancies for carriers as well as enterprises that are located in Australia and looking for connectivity to New Zealand as well as stronger international connectivity. This cable will enable New Zealand to better leverage Australia’s much stronger internet connectivity, which is especially needed as Kim Dotcom’s Mega service has been a disproportionate strain on our network. It will also achieve significant international connectivity benefits for New Zealand to link with Australia, and also onwards to the USA and into Asia.

Kim Dotcom, CEO and freedom fighter at Mega.Co.Nz added, “People didn’t take me seriously when I offered to pay for a new cable, yet here I am, financing 52.8 percent of this venture.  I am grateful for my partners for joining me in this great time of expansion for our Mega service, and the MEGA cable will be carrying between 40 and 80 percent of the Mega.Co.Nz traffic.  I am especially pleased about the capactity; with Mega, it’s all about getting enough capacity.  The only thing getting extradited is my customers’ data.

The MEGA cable will achieve significant international connectivity benefits for Kim Dotcom, with flow-on benefits for New Zealand at a fraction of the build cost of another, much longer trans-Pacific cable, the consortium partners said.



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  • coventry

    lol – yeah right.

    more like fat kraut stuff up NZ internet with all you can eat strudel offering.

  • Andy

    “MEGA cable”. This guy really likes himself doesn’t he?

    • blokeintakapuna

      Sticking it to the authorities is my guess. Good on ya KDC.

  • Agent BallSack

    Since Telecom are crooks and swindlers they should make awesome business partners for DotCon

  • Orange

    hehe very clever

  • Anonymouse Coward

    On a serrious note the Commerce Commision should take a long hard look at this because the cable has the effect of being a barrier to entry and thus protects the incumbents.

    • Orange

      So incumbents are not allowed to improve the products and services they offer?

      • Anonymouse Coward

        Why do we have low data caps in NZ?

        Could it be because the dominant supplier of international transit charges an arm and leg for it?

        If you wished to route around this financial toll gate by hopping acrros the Tasman and then from OZ to Guam, would it be in the incumbents interest to let you on their shinny new cable?

        • Orange

          So you don’t want to answer? k

      • not when they hold a whole country to ransom , and charge through the nose for it , and fail to deliver

        • Orange

          I do not follow your reasoning.

  • WayneO

    One thing is certain.

    When Kim Dotcom lays a cable I don’t want to be ANYWHERE near the scene.

  • James M

    Hehehe Copy/Paste from the Horrid, add Kim Dotcom here, here and here and a sprinkle of MEGA. Wait for public reaction, ????, Profit.

    • James M

      Opps looks more like’s not the horrids

      • Straight from Telecom, actually.

        • James M

          Bugger thought i got the correct one.
          Carefull Whale Oil, the GP forum internet police might be here soon to give you a telling off again :)

  • Good on Kim Dotcom , I remember when the labour Government got fed up with Telecom regulated them as they constantly failed to deliver on what they promised , on that day telescum lost over $2 billion off their share price which they have never recovered from.Imagine how many undersea cables that could have bought and imagine how good it would of being for themselves and the rest of New Zealand? Looks like being too greedy cost them shitloads .US$350 million was proposed for the pacific fibre cable.

  • A=random=reader


    You have been pranked by a faked press release.

    Kim Dotcom has no involvement in the TGA project.

    • You mean, the MeGA project.

    • A=random=reader

      Or you’re just pranking the readers of your blog.

      Either way, it’s a clever prank.

      • Mr_V4

        Only if you expect your readership is braindead.

        • RightNow

          Seems some are too braindead to understand the satire tag.

          • A=random=reader

            The best satire is indistinguishable from reality.

  • RightOfGenghis

    Brilliant whale, this is why I read this blog!

  • Bunswalla

    It wasn’t the prospect of Kim Dotcon being involved that gave it away so early – it was the fact that anyone could believe the bosses of Telecom and Vodafone agreeing on anything…

  • Timboh

    Mega piss take from the Irish Orca. Orson Wells did it with alien invasion and WO is doing it with invasion.

  • LesleyNZ

    Why would Telecom, Vodafone and Telstra get into partnership with someone who has a bit of a shady past? Can’t believe they could be so unwise. Something doesn’t seem right about this at all.

  • BW_Lord

    Did anyone catch the G labeled cable – SeaMeWee – 3??
    Please tell me that’s a pisstake as well.