Called Project Runway, the $200 million plan aims to massively boost Australia’s international capacity – a move that will ultimately reduce broadband costs to consumers in Australia.
The Pipe Pacific Cable 1 (PPC-1) will use Guam as its offshore landing point because the US island is a major hub, with high capacity links to the US west coast, Japan and other parts of Asia.
Brisbane-based Pipe yesterday suspended trading of its shares on the Australian Stock Exchange pending a major announcement regarding the Sydney-Guam fibre link.
“The reason for the trading halt is that the company is preparing to make an important announcement relating to Project Runway, a planned international fibre-optic cable between Sydney and Guam, which is likely to affect the company's share price but cannot be released immediately,” Pipe’s company secretary Malcolm Thompson wrote to the ASX.
The Pipe Networks board last month gave its formal approval to the legal and financial structure of Project Runway. It also said the company was now in a position to execute some outstanding sales agreements, with which it now had “sufficient customer commitments to proceed with Project Runway.”
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