Fibre optic cable, Australia Japan Cable (AJC), has commenced commercial operations with the first transmissions of customer data.
The AJC consortium's 12,000 kilometre, 640 gigabit per second cable links Australia to its major trading partner, Japan, via Guam.
It uses Dense Wavelength Division Multiplex (DWDM) technology capable of a minimum of 640 gigabits per second, which is the equivalent of 7,680,000 simultaneous phone calls.
Chief executive officer Robin Russell said the cable's commercial activation was achieved on schedule.
"Australia Japan Cable will play a significant role in meeting the capacity needs of companies throughout Asia Pacific and North America."
Russell said the cable has undergone rigorous testing since the connection of the final section of cable in November 2001.
The prime contract for the project was awarded to Japan's NEC, while project management services were provided by Telstra's Network Design and Construction subsidiary.
The cable network provides bandwidth within Asia and between Asia and Australia, as well as interconnection to the United States and beyond, via the trans-Pacific information super highway cable networks.
Shareholders in the project include Telstra, WorldCom, Japan Telecom, NTT Com, Teleglobe and Concert.