Spark, Vodafone and Telstra have confirmed they will spend $US70 million ($A75.74 million) building a new trans-Tasman telecommunications cable next year.
The 2300km submarine cable – dubbed the Tasman Global Access Cable – will help the companies cope with the increase in internet traffic between New Zealand and Australia.
The cable – two fibre pairs with total capacity of 20 terabits per second – will run between Raglan on Waikato’s west coast and Oxford Falls, Sydney.
The chief executives of the three companies said the partnership was a great outcome.
Alcatel-Lucent won the tender for the cable-laying job and the cable is expected to be up and running by mid-2016.
New Zealand is already connected to the rest of the world by the Southern Cross cable, which goes through Hawaii and Sydney, and the Tasman 2 cable, which already links Auckland with Sydney.