Kim Dotcom's fibre plan possible - PM

KATE CHAPMAN
Last updated 10:11 05/11/2012

Relevant offers

Politics

Stacey Kirk: Long knives being sharpened, but can Helen Clark stay clear of the blades? Below the Beltway: The week in politics Jo Moir: The Maori King has nailed his colours to the mast by shunning Labour Key washes hands of soap 'joke' but has he learned his lesson? PM on prison rape joke: 'It's nothing to do with me' Jonathan Milne: There's only one answer to the housing bubble – gently deflate it Oscar Kightley: 'Unfairness at work continues, thanks to one u-turn' Jacinda v David: Put kids at the centre of the school funding debate Alice Wylie: The nonagenarian with a lifetime of political tales to tell Nick Smith is 'Milllion-dollar Minister' as average Auckland house passes $1m mark

Millionaire Kim Dotcom would be putting his money where other investors would not if he goes ahead with plans to relaunch Pacific Fibre, Prime Minister John Key says.

The ambitious broadband plan was begun by Trade Me founder Sam Morgan in 2010 and would have seen a 13,000 kilometre high-speed fibre-optic cable connecting New Zealand and Australia to California.

It was hoped that having a second cable would increase competition and drive down prices.

The company ceased operations in August after failing to find the required $400 million of funding.

Last week Dotcom tweeted that he was going to relaunch the plan.

Dotcom recently announced the launch of a new website after his Megaupload digital storage site was shut down by United States authorities.

He has been a thorn in the side of the Government over attempts to extradite him to the US.

Mr Key told TVNZ's Breakfast programme that a lot of people had already tried to make the second cable work.

"It had a really star-studded cast of people who were prepared to be involved... in the end they couldn't come up with investors that thought it actually made sense."

The Government was prepared to underwrite a certain amount to help make the project financially viable.

Anything was possible, he said about Dotcom's plans.

"Kim Dotcom might but he'd be doing something that other investors didn't want to do."

Mr Morgan said yesterday that he had not spoken to Dotcom but would be happy to.

"It is an extremely important piece of infrastructure. What we really need is a cornerstone investor with a couple of hundred million dollars."

Ad Feedback

- The Dominion Post

Comments

Special offers
Opinion poll

Where do you stand on political coat-tail riding?

If it gets marginalised voices into Parliament, I'm for it.

I'm against it - if you don't get the votes, you shouldn't be there.

It's just part of the political game.

Vote Result

Related story: Voters reject riding on the coat-tails

Featured Promotions

Sponsored Content