Quote Originally Posted by Major von Tempsky View Post
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Other thought that occurred to me - all the brouhaha about Sam Morgan's Pacific Fibre cable possibly in two years time - are punters thinking that may impact CNU? Presumably TEL put it's half share of Southern Cross into CNU...
In the split TEL actually kept the SC Cable (i think).
Another problematic fact for the new cable proposed is
that TEL as well as several major users of SCC have repeatedly
pointed out there actually is no market shortage, there is lots of
spare unused capacity. Furthermore the actual SCC charges are
well within market limits - nobody is getting overcharged at all.
Also TEL/SCC consortium have several times significantly reduced
SCC tarrifs in recent years. At the same time there has been significant
investment in improving SCC & its servicing technology. All of which is
quite contrary to the lazy journalism of NZ newspapers who just seem to
have been parroting propaganda from the TEL-haters.
So how good is the business argument for the new cable? why have several
big customers signed up to use it? I want to learn a lot more about it before
seriously considering investing in a future ipo for the new cable.
At that time we will also be very interested in whatever TEL will be doing, but
we can be sure it will be a very competitive response.
Conceivably, TEL might even have found reasons to welcome a new competing cable.