Telstra has burnished its SDN credentials with the launch of new service capabilities allowing customers to order virtual network functions and connect their network circuits to other organizations on demand.

The new features have been launched as part of the Pacnet Enabled Network (PEN) -- a network-as-a-service (NaaS) offering that was originally developed by Asia's Pacnet , which Telstra Corp. Ltd. (ASX: TLS; NZK: TLS) bought for $700 million in April last year. (See Telstra Goes Global With Pacnet's NaaS Offer and Telstra Completes Acquisition of Pacnet.)

PEN allows organizations to match bandwidth needs to specific routes and applications and to have a network service up and running in a fraction of the time it would normally take.

Pacnet was using 16 points of presence to support the PEN platform but that number has grown to 26 under Telstra, adding major scale to the NaaS capability.

Building on those assets, the Australia-based operator has now introduced what it calls the PEN Exchange, which is designed to let organizations connect their network circuits to those of other customers in an on-demand fashion.

Another feature called the PEN Marketplace lets customers order virtual network functions -- including firewalls and routers -- using an online portal.

"We now have the unique capability to dynamically connect network circuits between PEN Exchange customers, linking different people and business sites easily and cost effectively," said Jim Clarke, Telstra's head of international products and pricing, in a company statement.

"Additionally, being able to order virtual applications, based on specific business requirements at specific times, means customers can also avoid overprovisioning and, consequently, unnecessary costs," he explained.

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Telstra's NaaS moves could put pressure on rivals to enhance their own network offerings. As noted by Caroline Chappell, a principal analyst with Heavy Reading , a handful of carriers provide these types of service on an international basis -- including NTT Communications Corp. (NYSE: NTT), Deutsche Telekom AG (NYSE: DT) and Interoute Communications Ltd. -- while Vodafone Group plc (NYSE: VOD) is working on doing the same. (See Vodafone Calls for End to Five Nines.)

Commenting on its acquisition of Pacnet when reporting earnings in August last year, Telstra said the deal had doubled its customer base in Asia, besides increasing the scale and scope of its international connectivity assets.

Thanks partly to the Pacnet takeover, revenues (in local currency terms) from the global connectivity business rose by 14.8% in the 2015 financial year, to A$780 million ($541 million).

— Iain Morris, , News Editor, Light Reading