American firm TE Connectivity (formerly Tyco Electronics) has signed a contract to build Pacific Fibre's trans-Pacific communications cable in a move Pacific Fibre says will boost its drive to secure funding.

IT News reports that the deal could be worth as much as US$320 million (NZ$379 million), and includes a five-year warranty following completion of the cable in mid-2013.

Pacific Fibre chose TE from four groups which responded to its invitation for tenders in April.

Mark Rushworth, chief executive of Pacific Fibre, says the deal ‘de-risks' the project, and gives Pacific Fibre the confidence to sign more vendors.

Research and Education Advanced Network New Zealand (REANNZ) signed up as a Pacific Fibre customer last week, in a deal worth $91 million.

More customers are expected to be announced in coming weeks.