Telstra Sells Asia-Pacific Messaging Business to US Company

Telstra International is stepping back from providing voice and messaging services across the Asia-Pacific market, after agreeing to sell that part of its business to Nasdaq-listed U.S. company iBASIS for an undisclosed sum.

The deal, which is still subject to regulatory approvals, will see iBASIS acquire high-value customer contracts and some of Telstra International’s commercial and operational staff.

Telstra will continue to operate wholesale mobile and fixed-line services in Australia, and provide data services to wholesale and enterprise customers in Asia and the Pacific.

Founded in 1996, iBASIS already has a customer base across the region and offices in Hong Kong and Singapore. It was initially set up to provide wholesale international long-distance services using Voice over Internet Protocol (VoIP) technology.

The acquisition gives iBASIS a foothold in Australia, New Zealand, Hong Kong, and Singapore, as well as exclusive rights to provide international wholesale voice services through Digicel Pacific, which covers Papua New Guinea, Fiji, Samoa, Tonga, Vanuatu, and Nauru.

The company said it will expand its sales and operations in the region, open a new office in Australia, and build additional points of presence (PoPs) to manage Telstra Mobile’s voice, signalling, and roaming traffic.

Chief executive of Telstra International, Roary Stasko, said the deal, described as a “long-term partnership,” would strengthen Telstra’s global competitiveness while ensuring continuity for international voice customers.

“We have full confidence in iBASIS to deliver seamless continuity for our wholesale and retail customers, backed by their proven track record in service delivery and global expertise,” he said.

iBASIS said the acquisition will accelerate its growth, but declined to say whether it expected to improve on Telstra International’s revenues from the region.

Telstra International will remain a significant global player, with points of presence in close to 200 countries and territories.

It uses a global network of more than 30 cable systems spanning over 400,000 kilometres, with access to 38 cable landing stations. The company employs more than 1,000 people across 30 countries.