Fiber-optic firm
cancels bandwidth
plans for isles

Vancouver-based 360networks
of plans to instead purchase
capacity on existing networks
in the Asia-Pacific region

Tim Ruel
Star-Bulletin

Canadian fiber-optic communications provider 360networks Inc. has canceled plans to build a new transpacific cable that would have offered more Internet bandwidth to Hawaii.

360networks said that it will instead purchase broadband capacity on existing networks in the Asia-Pacific region. The Vancouver, British Columbia-based firm is reducing capital spending by $1 billion this year to meet debt requirements.

The office of Gov. Ben Cayetano had lobbied 360networks to open the cable at points in West Oahu to offer more Internet capacity to state agencies and Hawaii firms.

Local industry analysts said Hawaii still has plenty of bandwidth without 360networks.

The Southern Cross Cable Network, a giant cable linking Australia and New Zealand with the U.S. mainland through Hawaii, opened in November and has been selling capacity to local Internet service providers. Another cable linking Japan with the United States is scheduled to open in Hawaii by September. Still, analysts said, another cable would have benefited consumers.

Shares of 360networks, traded on the Nasdaq Stock Market, hit a 52-week low of $1.22 Wednesday after the company said it needs $300 million by September to continue building other sections of its worldwide network.

For the quarter ended March 31, the company reported a net loss of $106 million, more than double its loss of $45 million in the year-earlier quarter, despite a 5.3 percent increase in revenues. Per-share losses widened to 14 cents from 11 cents.