PIPE Networks picks Equinix for PPC-1 interconnect

PIPE Networks (ASX: PWK) has picked the Equinix data centre in Sydney as an interconnect provider for the recently launched PPC-1 undersea cable.

The PIPE Networks undersea cable system, PIPE Pacific Cable (PPC-1), stretching from Sydney to Guam, was officially launched in October.

The cable system, capable of carrying data at 1.92 terabits per second, through the transmission of IP packets between Australia and the US, is expected to bring increased competition to Australia's broadband market.

The deal with Equinix, will see the data centre operator provide PIPE with access to an aggregation of carriers operating within its Sydney-1 (SY1) International Business Exchange (IBX). PIPE will also use Equinix global operations in Tokyo and San Jose.

“Our landing of the new cable is to provide Australia with enhanced, competitive connectivity to the rest of the world,” PIPE International CEO, Bevan Slattery said. “Equinix’s global data center services create an ideal partnership for us in the mission-critical project.”

In November, the industry was surprised to hear SP Telemedia (ASX:SOT) will acquire PIPE Networks (ASX:PWK) for $6.30 per share and valued the latter's assets at approximately $373 million; a premium of 15 per cent on the company's volume weighted average price over the past three months.

The announcement has created a wave of comment in the industry with many raising questions over how the operation will be run as SP Telemedia – which after a merger with TPG Holdings in 2008 has the retail brands of Soul and TPG – will gain access to wholesale assets.

However, Layer 10 founder, Paul Brooks, pointed out the deal was far from completed and its operational structure not likely to be known for some weeks or months.

“We are extremely pleased to have been selected by PIPE International to help create market interest for the PPC-1 undersea cable project,” Equinix Asia Pacific president Samuel Lee said in a statement. “We provide a very efficient and secure means to distribute optimized traffic to the Australian market as well as increase the options for international transit and transport services out of Australia. The new PPC-1 cable system will also enable our customers to increase the resilience of their international network and provide additional redundancy.”

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