Fibre-optic deal finalized: Taylor

The provincial government signed off on another deal this week - its $15-million fibre-optic contract with a trio of companies led by Persona Communications Corp.

It's part of a $37-million fibre-optic development by Persona, Rogers Communications and MTS Allstream.

Persona and its partners are building the province's third and fourth fibre-optic cable connections with the rest of the country.

The formal signing of the deal was announced Monday by Trevor Taylor, minister of innovation, trade and rural development.

"This robust network offers a wide-array of opportunities for many sectors including health care and education," said Taylor in a release.

The total cost of the entire fibre-optic project is estimated at $82 million. That includes $30 million for the land route between St. John's and Port aux Basques and $52 million for the sea route along the island's south coast.

Known as an indefeasible right of use (IRU) agreement, the province's contract is for 20 years with an option to renew.

The province has already contributed $5 million of its $15-million commitment. It will contribute the rest in four installments of $2.5 million starting Oct. 1. The final payment is due July 1, 2008.

For its money, the province gets six fibre strands between St. John's and Port aux Basques; four strands of fibre between Port aux Basques and Halifax; two strands along the south coast between Port aux Basques and St. John's; four strands between Cow Head and Plum Point on the Northern Peninsula.

Persona has also committed to providing the province a minimum of four fibre strands on any network it may build between Deer Lake and St. Anthony.

The department said these fibre are "dark" - meaning it's the province's responsibility to provide the equipment to use the fibres. If the government requests it,

Persona will make available the space, electricity and backup power at its equipment shelters along the fibre-optic network.

In the event of a catastrophic failure, the partners will pay their share based on a formula that takes into account how many strands each partner owner owns in the failed segment of cable.

The fibre-optic agreement also comes with a clause stating Rogers Communications will complete construction should Persona be unable to do so.

The fibre-optic link is scheduled for completion in October, while the Northern Peninsula portion is scheduled to be done in 2008.

Taylor said the provincial government is also examining the viability of making a fibre-optic connection to Labrador.

The Telegram