Telstra (ASX: TLS.AX) is taking charge of the Asia Pacific growth opportunities by securing licenses to operate its own network and serve customers in both Singapore and Japan.
In Singapore, the country's regulator--Infcomm Development Authority (IDA)--has issued Telstra a Facilities Based Operator (FBO) license, which allows it to own and operate telecom infrastructure including local voice and data networks and facilities. Another side benefit of the IDA is that it will enable the service provider to build the local backbone to support its submarine cable capacity to Singapore.
Likewise, in Japan, the Ministry of Internal Affairs and Communications (MIC) has approved Telstra Japan K.K. for the Registration Type license. With this license in hand Telstra can own and operate large scale telecom circuits and facilities in multiple cities in Japan in addition to the products and services delivered over those networks.
These latest moves in Singapore and Japan come on the heels of being rewarded three licenses to compete in India's international long-distance and ISP service markets. In India, Telstra will initially serve seven cities--Bangalore, Calcutta, Chennai, Delhi, Hyderabad, Mumbai and Pune--with Mumbai and Chennai serving as its Indian international gateways connecting into its international backbone network, providing customers with direct routes into networks in Europe and Asia.
By being able to operate its own network facilities in these regions, Telstra can more effectively ensure the quality of the service it can delivering to its international customers versus having to completely rely on a network partner.
"For international customers, Telstra will now have greater control over its services," said Tarek Robbiati, Group Managing Director for Telstra International Group (TIG) in a release announcing the expansion effort. "Specifically customers will enjoy access to a more comprehensive suite of connectivity and managed services, better network performance, complete monitoring, local contract billing capabilities, and in-country service center support. In addition, Telstra will have greater control over network architecture design, and be in a strong position to optimize performance, multi-level resiliency, redundancy and reliability."
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