Light Reading
NTT has made an awkward pitch to Telstra to help it with its regional business.

NTT Reaches Out to Telstra

Robert Clark
News Analysis
Robert Clark
7/10/2014
50%
50%

NTT Communications, the offshore arm of Japan's largest telecom group, has made a public pitch to become Telstra's prime Asian partner.

Monte Davis, the Australian CEO of NTT Communications Corp. (NYSE: NTT)'s ICT Solutions unit, has said the company could provide Telstra Corp. Ltd. (ASX: TLS; NZK: TLS) with the infrastructure and solutions to help it support Australian companies expanding abroad.

Telstra boss David Thodey has set an ambitious target of increasing his company's offshore business from 3% of sales to a third of all revenue by 2020. This year, it sold off its sole operator asset, the Hong Kong cellco Hong Kong CSL Ltd. , and now its focus is on the cloud and business services. (See CSL Sale Sparks Hong Kong Speculation.)

"A strategic partnership with a player that has significant assets in the region is probably the best way for Telstra to reach that critical mass in that kind of time frame," Davis told the Australian Financial Review.

His remarks came as Japan's prime minister, Shinzo Abe, was visiting Australia and New Zealand. Following Japan's lifting of the postwar ban on offshore military activity, the trip is a sensitive one -- that is, sensitive to China, which has engaged in a war of words with Japan over disputed territory and World War II, and which suspects the US of planning an anti-China alliance.

A co-location deal doesn't normally offer political pitfalls, but this is one Thodey might best make quietly. For instance, he might not want to make it while toasting Prime Minister Abe with a glass of warm sake under a Japanese flag.

Telstra is still 17% owned by the Australian government and is seen across the Asia-Pacific region as the country's flagship telco, so this requires some observance of diplomatic niceties.

Davis might also wish to heed some niceties, too. He seems to be dissing the Aussie telco in suggesting, as he did, that it is merely plodding in the footsteps of NTT Com. On the positive side, he said it should be "fairly easy to leverage the NTT assets, connecting them to Telstra assets and delivering a regional and more global service."

A spokesperson for NTT Com told Light Reading it was "engaging with Telstra" on a "number of areas of collaboration globally," though discussions were still at an early stage.

— Robert Clark, contributing editor, special to Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Documentaries
Paul Bunyan's Giant Gigabit Plans

12|22|14   |   03:26   |   (0) comments


Gary Johnson, the CEO and GM of Minnesota rural operator Paul Bunyan Communications, discusses the company's 5,000-square-mile gigabit network rollout.
LRTV Interviews
CenturyLink: Building the Case for NFV

12|19|14   |   02:14   |   (0) comments


At the 2020 Vision Executive Summit, James Feger, VP, Network Strategy & Development at CenturyLink, talks about how the US operator is approaching virtual network functions from an operational and business case perspective.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
Comcast Launches 4K Streaming Service
Alan Breznick, Cable/Video Practice Leader, 12/18/2014
US Carriers, You're Going to Cuba!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/18/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Webinar Archive