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HyperOne kickstarts construction of $1.5bn fibre system

At full build, the terrestrial system is expected to contribute AU$22.6 million (US$16.06 billion) in broad economic gains, according to Deloitte.

By João Marques Lima

Founder and Editor, The Tech Capital

3 Mins

December 15, 2021 | 3:00 AM GMT

HyperOne kickstarts construction of $1.5bn fibre system

Bevan Slattery, founder of HyperOne. Source: HyperOne

Fibre transmission network operator HyperOne has begun deployment works for a new 20,000 Km cable set to come online in 2024 and represent a total investment of AU$1.5 billion (US$1.07 billion).

The first phase of development spans 2,300 Km and will connect what HyperOne calls the “Australia’s ‘cloud alley’” which includes Sydney, Melbourne and Canberra.

The cable company was founded by Australian entrepreneur and investor Bevan Slattery, who is also behind some of Australia’s major digital infrastructure brands including Megaport, Cloudscene, FiberSense, and Sub.Co.

HyperOne is set to outsource 7,600Km of fibre for the first phase of construction from Australian-based manufacturer AFL Global.

Slattery told those attending the launch event of the “phase 1a” of the project that “construction will form the foundation of the project as we push the cloud to other capital cities and parts of regional Australia that also require greater connectivity”.

He said: “We are thrilled to have started construction works between Sydney and Melbourne, the two largest centres for cloud in Australia. This will provide much-needed additional capacity between these locations.

“Connecting “Cloud Alley” first will ensure that everywhere we build thereafter is able to take advantage of the access and capability.

“The cable will have three layers of protection including a termite-protected sheath, rodent-protected inner sheath and a non-metallic armouring to provide even more protection from Australia’s harsh soil conditions.”

AFL’s CEO for A/NZ Tony Dunstan, added: “This is a great vote of confidence not only in our business, but in our domestic manufacturing sector. Producing the cable here means local jobs will be created every step of the way with this project.”

A report from Deloitte Access Economics estimates the new network will deliver more than AU$3 billion (US$2.13 billion) in direct economic benefits and contribute to AU$22.6 million (US$16.06 billion) in broader economic gains.

The report found HyperOne could help reduce the digital divide between regional and metropolitan areas, helping to spur the growth of new and existing industries away from the major cities.

“HyperOne has the potential to unlock opportunities for regional economic development, providing the connectivity needed for regional businesses to compete in the global economy. Delivering affordable backhaul into regional Australia is key to levelling the playing field,” the report states.

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João Marques Lima

Founder and Editor, The Tech Capital

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