Recently, Southern Cross Cable declared its plans to cut prices for services on its submarine cable network linking Australia and New Zealand to the US via Hawaii.

Furthermore, it also said that the company is mulling to increase capacity by more than 50 percent early in 2010. The company aims at creating a whole new cable system.

According to Sales director, Ross Pfeffer, "Another price reduction is available immediately and by March next year lit capacity will expand again, this time by more than 50 percent. The latest initiatives follow closely on the heels of the last price reduction and capacity upgrade that was completed in January of this year. Southern Cross is accelerating its capacity expansion and reducing prices in anticipation of continuing strong demand and in support of Government initiatives for high speed broadband in both Australia and New Zealand."

Furthermore, the company has also reduced prices for circuits to the US, from both Australia and New Zealand, by 15%.

Pfeffer continued further, "These reductions are made possible by our ongoing implementation of cost effective capacity expansions. The new Southern Cross price for 5Gbps of restored capacity represents around $US0.28 per Gigabyte downloaded from the US. This has reduced by 86 percent, from $US1.95 per Gigabyte, in December 2003."

Apart from this, prices for its Trans-Tasman and Hawaii-US circuits have also been reduced by Southern Cross.

The company's prices for the mentioned smaller markets have just been reduced by 49 percent. The company aims at keeping prices for these markets aligned to make sure its Trans-Tasman pricing indicates very strong competition in the US-Hawaii Market.