Grahame Lynch of CommsDay reports (my emphasis):
Google is planning a multi-terabit undersea communications cable across the Pacific Ocean for launch in 2009, Communications Day has learned.
The Unity cable has been under development for several months, with a group of carriers and Google meeting for high-level talks on the plan in Sydney last week. (...)
Communications Day understands that Unity would see Google join with other carriers to build a new multi-terabit cable. Google would get access to a fibre pair at build cost handing it a tremendous cost advantage over rivals such as MSN and Yahoo, and also potentially enabling it to peer with Asia ISPs behind their international gateways - considerably improving the affordability of Internet services across Asia Pacific.
CommsDay says Google didn’t directly deny or conform the rumors, with Google’s Barry Schnitt telling them:
Additional infrastructure for the Internet is good for users and there are a number of proposals to add a Pacific submarine cable. We’re not commenting on any of these plans.
Does this rumor sound crazy? Well, have a look at this Google job position: