With its partnership with Asian Telco Pacnet, Pacific Fibre is ready to turn its dream into reality.

Mark Rushworth, Pacific Fibre Chief Executive, said that the two firms would ink a mutual agreement, according to which, the expenses for erecting the cable and the operation costs US$400 million (NZ$548m), along with maintenance costs will be split into half. The projected 13,600-kilometre cable would be connecting Australia, New Zealand and the US.

Rushworth said that drawing customers, retailing capacity and funding the project, would depend on each collaborator.

Kordia’s Chief Executive Geoff Hunt said that he would call up Mark Rushworth and co-creator Rod Drury "to congratulate them on getting their project to this point".

Yesterday, Pacific Fibre made a declaration about its deal with Asian Telco Pacnet.

To lure consumers, the Company will offer its services at a lower cost, says Director of Economic Consultancy Covec, John Small.

John said, "The big thing is that they will have to come down in price relative to Southern Cross, simply because buyers now have a choice between the two. I'd certainly expect a material fall in the price".

The venture would give competition to Southern Cross Cable, which is half-owned by Telecom.