Australia's second largest telco Cable & Wireless Optus has announced a major expansion of its national fibre-optic network which it said would boost revenues by AU$200 million over five years.
C&W Optus said it had partnered with construction group Leighton Holdings and the Queensland government to build a 1800 km extension to the network in northern Queensland.
C&W Optus managing director data and business Chris Hancock said the link would generate more than AU$200 million in revenues over five years with potential acquisition of an additional 614,000 customers.
"We would look at that as being a conservative figure, and we think we can drive that harder," Hancock told Reuters.
Hancock said Leighton would foot most of the bill for the AU$85 million infrastructure deal, with C&W Optus facing "minor operational costs" going forward.
"It allows us to further reduce our reliance on capital expenditure which is obviously tight in the market we are in at the moment," he said.
Hancock also said negotiations were continuing with Telecom New Zealand on a major expansion of the Southern Cross Cable Network linking Singapore, Indonesia and Australia.
"I suspect you may hear something more before the end of this year," he said.
That is good news.