Telstra, PCCW complete Reach restructure

Australia’s telco giant Telstra and Hong Kong-based telecom service provider PCCW have completed their Reach restructure. The two announced in January that the international assets in their 50/50 Reach joint venture would be divided between both parties. The remaining joint assets will continue to be managed by Reach in Hong Kong.

The restructure represents a milestone in Telstra International’s strategy to drive greater customer and shareholder value.

Telstra International’s expanded platform in the Asia Pacific region enables business growth and increased control over the end-to-end service delivery platform. This will allow its enterprise and global service provider customers to experience enhanced customer service, improved service management and delivery and more competitive market positioning.

As a result of the restructure Telstra International will have: direct ownership of more undersea cable assets in particular the Reach North Asia Loop; an international PSTN voice capability that already boasts the carriage of 4.5 billion minutes per year; additional Points-of-Presence globally thereby creating an extended product portfolio across all regions; the ability to transition the international voice network to Internet Protocol (IP) to allow more synergies between voice and data services; and, satellite services and associated base stations that reach over two thirds of the Earth’s surface.

Telstra is also acquiring additional global backbone and backhaul systems and a Global Roaming Exchange platform, otherwise known as a GRX.

Telstra International Executive Director Global Sales, Mr Philip Mottram said the greater control over the global assets will enable Telstra International to achieve operational efficiencies and reduce time to market for new connectivity and managed services, helping create an overall simpler customer service experience.

“At a time when customers are increasingly demanding support for innovative delivery models, this restructure will enable us to accelerate our new product development program which comprises the build, deployment and launch of new strategic products and services that address key emerging network and service provider market opportunities.

“This is an extremely exciting time for Telstra International, as we can continue to focus on driving connectivity into the Asia Pacific region, whilst streamlining processes and passing the benefits of enhanced customer service and more competitive market positioning,” Mr Mottram said.

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