20 Feb 2013

Commerce Commission to look at cable project

12:57 pm on 20 February 2013

The Commerce Commission is to consider whether or not a new trans-Tasman communications cable raises any potential competition issues. But it has not had any discussions as yet.

The $71 million proposal involves Telecom, Vodafone and Telstra.

Telecom said it has had some discussions with the Commerce Commission, but does not expect there to be any problems.

It said it is a common international practice for telcos to combine to build new telecommunications cables under the ocean.

In an added complication, Telecom will own part of the new cable as well as part of the existing cables.

However, both Telecom and Vodafone insist the two operations will be separate with separate boards.