The company requested that the competing Internet connection providers submit a trace route from its Sydney office to Chicago to show exactly where the data travels as well as the delivery rates of the data over their networks.

AT&T Australia managing director Jeyan Jeevaratnam said the company has invested more than US$10 billion in upgrading its network across the globe.

"This allows us to offer Australian companies access to an IP-enabled, MPLS-based network that covers more than 90 percent of the world's economies and has unrivalled coverage in the US," he said.