Internet Cable Boost

The Age

Thursday March 29, 2007

Matt O'Sullivan

TELSTRA will lay a 9000-kilometre undersea data cable between Australia and the US to meet broadband internet growth.

Alactel will supply and lay the cable from Sydney to Hawaii. It will be completed by the middle of next year and Telstra will own it.

Telstra has not revealed the cost, but analysts estimate it will be hundreds of millions of dollars.

Telstra's network and technology chief, Lawrence Paratz, said the cable would improve data, voice and video transmission capability to the US and reduce Telstra's reliance on third parties.

"Broadband is absolutely one of the important factors (in deciding to build the cable)," he said.

Telstra shares fell 1? to $4.51.

© 2007 The Age

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