The Southern Cross Cable Network (SXC) has reduced the prices it charges to operators by at least 44% on the back of a network upgrade.
But while the upgrade has added significant capacity to the submarine cable network, new initiatives mean that the capacity is likely to be used up very quickly.
As a result, according to the NZ National Business Review, the company is already planning for the next upgrade, which will be installed within one or two years.
The SXC currently has a current theoretical limit of 4.8Tbps, but the company's sales and marketing director has said that the network's ultimate size is likely to exceed this limit.
The price-cut could be a pre-emptive move to discourage Australian operator Pipe networks from laying a competing cable system.
Pipe networks last week announced it was having trouble raising the $200 million required to fund its proposed competing cable system, which would connect Sydney and Guam.