Prototype transmission equipment capable of 100Gbps speeds was successfully trialled on the Southern Cross twin cable network, during testing in readiness for the next capacity extension scheduled for 2012. The Southern Cross cables currently use 10 Gbps transmission equipment.

The 28,500 kilometre Southern Cross undersea cable network was built to provide international capacity to the US for broadband internet connectivity from both Australia and New Zealand.

"It is very pleasing to see 100 Gbps equipment operating some two years earlier than previously expected" said Ross Pfeffer the Southern Cross sales and marketing director. "While it is unlikely that we will be able use the 100 Gbps equipment for next year's upgrade, it is going to be an option much sooner than we previously thought and the potential size of our network will keep growing in huge leaps."

The expected 2012 upgrade will be the fifth to to the cable, and will likely be based on 40Gbps equipment. Pfeffer said the upgrade will take the total network potential to "at least" 6 Terabits per second. He said this is 25 times higher than the original design capability of 240 GBps in 2000.

A statement said that capacity demand out of both Australia and New Zealand was currently growing at an annual rate of 35 percent on the network.

International capacity prices were expected to continue to decline, partially driven by a highly competitive market in Australia. "While we are the only operator out of New Zealand, we set our NZ to US prices at levels no higher than our Australia to US prices," said Pfeffer. "We will also continue to keep our trans-Tasman prices at the same level as our Hawaii-US prices, another market in which competition is well entrenched."

Telecom NZ is the majority shareholder in Southern Cross Cables, with stakes also owned by Optus and Verizon. A second cable is planned by Pacific Fibre.