Telstra sets up network services JV with Telcom Indonesia

Australian operator Telstra has formed a joint venture with Telkom Indonesia to provide network services in South East Asia.

The two have signed a non-binding memorandum of understanding (MoU) that will see the joint venture become the exclusive provider of network applications and services in Indonesia for the two operators. It will also offer managed network and security packages, cloud and unified communications services across the region.

Earlier this week, Telstra acquired Melbourne-based enterprise network and security integrator O2 Networks in a bid to enhance its network application and services portfolio. Telkom Indonesia is the parent of Telkomsel, Indonesia’s market leading operator with 126.5 million subscribers as of September 2013, according to Informa’s WCIS+. It has almost twice as many subscribers as second-placed Indosat with 65.5 million.

Brendon Riley, Telstra group executive for global enterprise and services, said the move would accelerate Telstra’s growth in South East Asia. He added that the JV will focus on business continuity, business performance optimisation, protection of business data and improved employee productivity.

“Our plan is to provide enhanced consistency of services for companies connecting with Indonesia and operating in the region,” he said.

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“Indonesia is a fast growing NAS market and we believe the best way to make in-roads is by partnering with a well recognised and respected local player. It also aligns to our strategy of supporting our enterprise customers around the globe.”

He added that the JV is part of Telstra’s plan to grow in South East Asia, where it intends to set up its own operations as well as form local market partnerships.

Pak Indra Utoyo, Telkom Indonesia’s group chief strategy and innovation officer said: “We are bringing the proven ICT NAS solutions to Indonesia to assist businesses to be more productive and competitive to support them locally and into the region.”

He added that the JV will help it enable enterprises in Indonesia to be more “agile, productive and secure”.

Telstra’s Riley said the operator is stepping up its focus on network and security services with this week’s acquisition of O2 Networks and the acquisition of unified comms and network services provider NSC late last year.

“We have also commenced expansion of selected NAS portfolios – managed network services and cloud – into international markets, particularly in the Asia-Pacific Region so today’s announcement is a further indication of our intentions for the region and for our NAS business.”