Asia Netcom and Pacific Internet launch merger, unveil new corporate identity

JANUARY 9, 2008 -- The combined company, operating under the name Pacnet, says its future plans include a new Trans-Pacific cable; further expansion into key regional markets; and new partnerships to enable both organic and inorganic growth for the company.

JANUARY 9, 2008 -- Asia Netcom (search for Asia Netcom) and Pacific Internet yesterday announced the launch of their operational merger and unveiled strategic plans for the joint entity at a media/analyst briefing in Hong Kong. Under its new name, Pacnet, the company will go to market with a new brand.

"The next decade is all about Asia, and Pacnet is poised to be a unique 'pure play' provider focused on delivering solid communication solutions within Asia and into the region from anywhere in the world," asserts Bill Barney, CEO of Pacnet. "We are pleased to be one of the region's premier providers of broadband. We have unique assets that are not easily replicable."

Pacnet says a key asset behind its growth is the EAC-C2C cable infrastructure, a 36,800-km submarine cable network that can carry up to 10.24 Tbits/sec of capacity, of which only 240 Gbits/sec is currently lit. The EAC-C2C network has an estimated replacement value of $4 billion�based on the cost of building a similar infrastructure. However, at current market rates, analysts have assessed the true value of the EAC-C2C network at close to $10.3 billion.

With the two companies merged, Pacnet says it can now offer solutions for retail consumers, Fortune 500 companies, as well as service the wholesale carrier market. To illustrate this point, Barney cites Pacnet's comprehensive portfolio of products, ranging from providing ADSL broadband connections into home offices to Multiprotocol Label Switching-Internet Protocol Virtual Private Network (MPLS- IPVPN) services for global multinational corporations and wholesale capacity for carriers.

One of the key success drivers for Pacnet is its people, says Barney, which number about 1,400 after the merger. "A main factor contributing to the rapid pace of integration between the two companies is a long-serving leadership team coming together from both entities. Most members of Pacnet's senior management team have been with the company more than 5 years and average about 20 years of industry experience," he reports.

As part of the company's strategic plans to meet the recent surge of bandwidth demand in Asia, Pacnet has already embarked on its next-generation network upgrades, which will increase network efficiency and reliability and put the EAC-C2C cable network one step ahead of other cable systems available today, say company representatives. Also on the table are plans for a new Trans-Pacific cable; further expansion into key regional markets; and new partnerships to enable both organic and inorganic growth for the company.

We've never been in a better position in the market, and 2008 will be an extremely exciting year for Pacnet," contends Barney.


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