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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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

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