Dotcom’s chances of reviving Pacific Fibre Cable

This from the NBR:

http://www.nbr.co.nz/opinion/kim-dotcoms-pacific-fibre-fantasy-vs-rod-drurys-ppp-reality

Drury says Dotcom is tweeting up a storm in a teacup over nothing with Dotcom’s talk of reviving the Pacific Fibre cable project to provide a second link between NZ, Australia and the US:

“Mr Drury saw Mr Dotcom’s overtures to Pacific Fibre as little more than clowning around on Twitter”.

I had a snigger at this. Drury’s opinion is based on emotion rather than fact.
He’s competitive is Rod. A trait known by the Wellington tech crowd of the 2000’s.
¬†If Drury can’t get the LA-Sydney-Auckland broadband cable going, then be damned if he is going to sing anyone else’s praises.
However, if Dotcom is bona fide (and this is something that the jury is still out on in the eye of the public), –¬† Dotcom is New Zealand’s best bet to get the project resurrected.

It comes down to the size of the investment. The project needs at last 320 million of private funds.
Currently in New Zealand there is about 20 individuals who could sink in around a million each. I could name ten of these. maybe another five could contribute over the next decade.
Pacific Fibre needs 300 of these 300 “smaller “Angel Investors”.
This limited pool of investment funds is what scuppered the project under Morgan’s and Drury’s stewardship. They have a shortfall of 300 million even before the NZ government gets involved.
 New Zealand is a small pond when it comes to Angel Investment.
Morgan and Drury haven’t been able to attract investment. Tindall/Drury/Morgan et al only put in 5 million of their own money combined and they’d be leading the pack in terms of wealth in the community
“On Breakfast this morning, Prime Minister John Key dryly noted that Mr Morgan and fellow Pacific Fibre backer Sir Stephen Tindall could have put a lot more of their own money into the cable start-up (Mr Morgan told NBR that, collectively, Pacific Fibre‚Äôs NBR Rich List backers lost between $5 million and $6 million)”
The rich listers have committed it all elsewhere. They forked out for due diligence but they’re stuck trying to convince others why they should invest their cash.
Rod Drury is now pushing the idea of a new cable as a public private partnership (Mr Drury and Mr Morgan have previously told NBR they don’t think any private cable will succeed):
Drury and Morgan are tcurrently talking to minister Amy Adams about corporate welfare.

I like Dotcom’s philanthropic approach to the fibre conundrum better. Less burden on the taxpayer.
Maybe Dotcom could attract 2 or 3 more investors with “Dotcom” size wealth. There is a chance that the notorious Dotcom may be able to lure sizeable investors or philanthropists out of the international undergrowth¬†
Or the project could be a literal pipe-dream.
But I’d still come down on the side of Dotcom.¬† You have to dream big to be in the business of wealth creation and Dotcom has proved successful at this a number of times.

As for the Americans not wanting his cable to land on US shores:
“Pacific Fibre co-founder Rod Drury added another when he talked to NBR this morning: the accused pirate wouldn’t get approval to land the cable in the US.”
Investment vehicles could easily allow Dotcom to invest.¬† And US businessmen don’t get all butt-hurt when there’s money to be made or an advantage to the US economy.
But do expect a lot of bluster from all sides at the start of the process.  

 

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