Kordia CEO Geoff Hunt is welcoming the initiative from Xero boss Rod Drury to build a high-capacity undersea fibre cable connecting New Zealand, Australia and the USA.

Called Pacific Fibre, the proposed cable will connect New Zealand to the rest of the world with 5.12 Terabits/sec by 2012 - five times the total current capacity of Southern Cross.

Hunt says that Kordia has been in discussions with Drury and others over the past few months, and is looking forward to working with them on delivering a technology solution that will bring New Zealand business up to speed with the rest of the world. "It'll take more than a lone player to make that happen by 2012," says Hunt.

"Pacific Fibre is planning to work with reputable partners and a strong team to deliver this project on time," says Hunt. "With the preparatory work that we have already completed on the Auckland to Sydney OptiKor' cable, it makes sense for Kordia to team up with Pacific Fibre. Kordia's focus, however, will remain trans-Tasman.

The development of the OptiKor' business case has already brought competitive pressures, lowering prices for New Zealand businesses and broadband users. Southern Cross has dropped its prices in excess of 75 per cent since Kordia announced its plans.