Honolulu, 16 January 2004
Carriers Focus on Core Businesses, Partnerships

International carriers will turn their focus to core businesses and seek to expand through partnerships in 2004 as the telecommunications industry continues to face ongoing consolidation due to over-capacity and price compression, according to top telecommunications executives taking part in this year’s Pacific Telecommunications Council (PTC).

“We are hopeful about the industry outlook in 2004 as the general economic condition improves,” said REACH chief executive officer, Mr. Dick Simpson, who was in Hawaii with the REACH delegation. “We see 2004 as the transformation year.”

“However, there will continue to be price pressure and consolidation – this is all part of the recovery process,” Mr. Simpson added. As a result, carriers are taking a much more cautious approach to investment and expansion. Instead of making heavy investments in infrastructure and operation, telcos are increasingly looking to focus resources on core businesses and expand by working with other carriers.

REACH, with its recognised leading IP backbone and extensive presence in the Asia-Pacific region, is in an excellent position to capitalise on the trend. REACH, which already provides connectivity solutions to many of the world’s top carriers, recently developed a channel program that allows international carriers to partner with REACH and extend their services and coverage to Asia without the need for making large investments.

“Over the last 12 months, we have concentrated on improving our service to carrier customers and developing opportunities for channel partnerships,” said Mr. Simpson. “We are focusing on our core business and being better at what we do – helping other carriers connect within and beyond Asia.”

PTC is an international, non-profit, non-governmental, membership organisation in Honolulu, founded to promote the development of telecommunications and related industries in the Asia-Pacific region. More than 700 executives from leading telecommunications companies attended this year’s conference in Hawaii.

About REACH
REACH is Asia’s largest international wholesale carrier of combined voice, IPLC and IP data services. It is one of the top carriers of international voice traffic in the world. REACH’s IP network has consistently been ranked the top backbone in Asia-Pacific by independent research companies including Gartner and Netconfigs. REACH serves more than 300 carriers, including many of the world’s largest carriers, and facilitates access to over 240 countries and territories. The company has operating licences and landing rights in most major Asian markets, the US and the UK. For further information, please visit www.reach.com