TEL Telecom NZ Fpo Nz

   By Rebecca Howard 
 

WELLINGTON--Telecom Corp. of New Zealand Ltd. (TEL.NZ), Telstra Corp. (TLS.AU) and Vodafone Group PLC's (VOD.LN) local unit said Tuesday they have signed a non-binding memorandum of understanding to invest in the construction of a new submarine telecommunications cable between Auckland and Sydney.

The total cost of the new cable is expected to be less than 60 million New Zealand dollars ($51 million) and will incorporate approximately 300 times the current internet data demand out of New Zealand.

The partners expect to finalize the design within the next few months with a likely completion data of mid to late 2014.

-Write to Rebecca Howard at rebecca.howard@wsj.com

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