TELSTRA GROWING U.S., GLOBAL CONNECTIVITY

As U.S. corporations look for more connectivity in Asia, Telstra Inc., the U.S. arm of the Australian service provider, is stepping up its service offerings, focusing on the depth and breadth of its global connections not only in Asia but around the globe.

“What we really pride ourselves on is going to those hard-to-get-to places,” said Dan Kerth, CEO of Telstra Inc. “We have this Asia PAC heritage, but that's not all we do. We also have extensive coverage in South America and Europe.”

That strategy has paid off in a 20% growth rate, he said.

Working with partners worldwide, the company believes it offers more extensive reach and an ability to more quickly provide the connections that multinational companies seek. Earlier this summer, for example, Telstra Inc. announced its Hong Kong Express service, which provides U.S. to Hong Kong service in conjunction with tel(x), an interconnection provider at the 60 Hudson St. carrier hotel in New York City.

“There is capacity between New York and Hong Kong, but right now, the industry standard for turn-up is 30 days, and we are looking to take no longer than one week on T-1 and DS-3 service,” said Eric Gillenwater, commercial manager for Telstra Inc. “More important, there are no long-term contracts required. We are going to allow customers to contract on a very flexible manner, for just 30 days. We will give discounts for longer-term commitments, but the focus is on providing quick turn-up with no sense of long-term commitment.”

Telstra Inc. also focuses on providing the integration service that companies require to get the connections they want without having to deal with multiple different service providers, according to Kerth.

Telstra Inc. operates eight points of presence (POPs) in the U.S., including two major international gateways in New York City and Los Angeles and other POPs in Chicago; Dallas; Miami; New York; San Jose, Calif.; and Washington.

“Our strategy is not to have huge coverage,” Kerth said. “We are looking to take business out of the U.S. But we will put POPs in as needed.”

Telstra Inc. will also add global partners as needed to go where its corporate customers need to go. That approach to growth is what led to the South American expansion.

“We got opportunities with existing clients who wanted connections into South America,” he said. “But that is not all our network — we work with partners.”

The global marketplace is experiencing consolidation, as France Telecom swallows Equant, BT acquires Infonet, SBC Communications buys AT&T and Verizon acquires MCI, but Kerth does not expect competition to be significantly tougher.

“It's hard to say whether it is going to be more competitive — it is really competitive as it is,” he said. “There are certain carriers that are able to solve the international connectivity solution better than others. That can be through their own assets or through partnerships. The key thing — it all comes down to the people and the relationships you have with your customers.”

Close relationships with service provider partners enable Telstra to have on-the-ground contacts in each of the countries it serves without dispersing its own personnel around the globe, Kerth added.

In the U.S., Telstra is looking to raise its profile among corporate customers and to add to its partnerships.

“Some of the bigger multinationals may have several sites in the U.S. — that doesn't fit us very well right now, so we are looking for partnerships to meet that market need,” he said. “We are kind of quiet here — not that many people know us. We are going to work on our exposure in the U.S. and on our marketing coverage over the coming months. You will see new things from us.”