Colt expands business footprint in six Asian countries

The expansion is part of the company's scheduled investment in Asia-Pacific totalling €100 million ($108.73 million) in the next three years.

Gigi Onag, Senior Editor, APAC

June 6, 2024

3 Min Read
Tokyo skyline
(Source: Colt Technology Services)

Digital infrastructure company Colt Technology Services is expanding its business footprint in Asia, adding six countries including the Philippines, Taiwan, Vietnam, Thailand, Malaysia and Indonesia. The expansion is part of the company's scheduled investment in Asia-Pacific totaling €100 million (US$108.73 million) in the next three years.

The company announced on Wednesday it will lean on new non-exclusive strategic partnerships with multiple B2B telecom carriers in the region to help push its business into Southeast Asia, starting with its global partners from Colt's recent expansion into West Japan and South Korea metro areas.

"The strategic partnership enhances our ability to offer greater service availability and extensive regional expertise, as well as competitive pricing through economies of scale. These efforts enable us to provide comprehensive end-to-end network services globally, benefiting customers in Asia and those looking to connect their networks from the world into Asia. Our AI-driven insights estimate the target market size at approximately 2,206 million euros ($2.4 billion)," Yasutaka Mizutani, president for APAC at Colt, said in a statement.

According to Colt, its new strategic partnerships will deliver competitively priced Ethernet and IP Access services across Southeast Asia, which support customers' SD-WAN requirements and promote cloud adoption in the market.

Furthermore, the company added that these partnerships will enable a more streamlined customer experience – which includes improved quotation speed (from several weeks to a few days), faster service delivery, direct engagement for strategic opportunities, and service operational alignment with a strategic partner. These partnerships also allow Colt's enterprise customers to have similar levels of On-Net Product SLAs (Service Level Agreements) as those provided with Colt's own fiber in other areas.

Stronger global position

Colt said its business expansion in Asia seeks to support Japanese and other global companies that are dipping their toes into a rapidly growing market.

Quoting Global Data, Colt Chief Commercial Officer Annette Murphy said in a statement that the average compound annual growth rate for B2B Network Services in the region from 2022 to 2027 is estimated at 9.8%, which is higher than in the US (7.05%) and Europe (8.41%).

"APAC is a key driver of growth, and I am delighted to announce our strategy to position ourselves as a global leader in digital infrastructure. This business expansion will be part of our scheduled investment in APAC, totaling 100 million Euro (about 16.8 billion yen at the exchange rate of 1 Euro=168 JPY) in the next three years," she added.

Colt's latest brand research highlights businesses plans to extend their digital infrastructure outside their existing markets. Having surveyed 1,100 senior IT decision makers across APAC, Europe and the US, Colt found 44% planned to extend their digital infrastructure to Europe and 40% to APAC.

And the company has been strengthening its global position in anticipation of a huge jump in demand for B2B network services.

In November 2023, Colt completed the acquisition of Lumen Technologies' EMEA business for $1.8 billion. According to Colt, this elevates it to one of the world's largest business-to-business-only telecom companies.

As part of the acquisition, Colt and Lumen Technologies also entered into a partnership agreement which sees businesses in North America benefit from access to Colt's digital infrastructure and services within and outside of North America.

To date, Colt's network spans across over 40 countries, connecting more than 1,100 data centers and over 32,000 buildings with direct fiber connections. 

Read more about:

Asia

About the Author(s)

Gigi Onag

Senior Editor, APAC, Light Reading

Gigi Onag is Senior Editor, APAC, Light Reading. She has been a technology journalist for more than 15 years, covering various aspects of enterprise IT across Asia-Pacific.

She started with regional IT publications under CMP Asia (now Informa), including Asia Computer Weekly, Intelligent Enterprise Asia and Network Computing Asia and Teledotcom Asia. This was followed by stints with Computerworld Hong Kong and sister publications FutureIoT and FutureCIO. She had contributed articles to South China Morning Post, TechTarget and PC Market among others.

She interspersed her career as a technology editor with a brief sojourn into public relations before returning to journalism, joining the editorial team of Mix Magazine, a MICE publication and its sister publication Business Traveller Asia Pacific.

Gigi is based in Hong Kong and is keen to delve deeper into the region’s wide wild world of telecoms.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like