Vocus Communications (ASX: VOC) is set to purchase additional capacity on the Southern Cross Cable Network (SCCN) for US$58.5 million (A$78.7 million).
The submarine network covers 30,000 kilometres between Australia, New Zealand and Hawaii.
According to Vocus, the purchase will increase its existing capacity by up to 10 times and allow the company to meet rapid growth in Internet data demand from customers.
Vocus Communications CEO James Spenceley said that capacity will be allocated and paid in annual instalments over a six-year period, beginning in December 2015.
“This significant increase in capacity enables Vocus to continue to leverage the high growth in data demand from the wholesale and enterprise sectors,” he said in a statement.
In July 2013, SCCN implemented Ciena’s 100G transmission equipment across its submarine network to meet demands for data networking services.
According to Southern Cross sales and marketing director Ross Pfeffer, the transmission equipment increased total lit capacity across the two cables to 2.6 terabits (Tbps) per second.
“If deployed on all fibres, along with gridless optical networking, our potential capacity capability increases to 12Tbps, between Australia, New Zealand and the United States,” he said at the time.
Computerworld Australia has contacted Vocus Communications for more information.
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