Telstra laying new Australia-US cable

Updated April 8, 2008 23:04:43

Australian telecommunications provider Telstra has begun laying down 9,000km of cable from Australia to Hawaii to improve Internet speed.

The telco says the underwater cable should be finished by the end of the year and will mean faster downloads for Australian customers.

Telstra's Kate McKenzie says the company will then sell-off some of the cable's greater Internet capacity to other Internet Service Providers.

"It's really crucial for the future, we're seeing the rate of data transported from the US to Australia and back again doubling every year - 65 per cent of of our Internet traffic comes from the US," she said.