Telstra forms Indonesian joint venture

Telstra is putting its Asia-Pacific expansion plans into action, signing an agreement to set up a network applications and services (NAS) joint venture in Indonesia.

The company has partnered with Indonesian counterpart PT Telekomunikasi Indonesia (Telkom) for the joint venture, which will target Indonesian enterprises and multinational customers.

With the JV, the companies aim to offer managed data network and security services, cloud and unified communications services. Telkom will provide the telecom infrastructure for the services. The companies aim to start offering services to Indonesian enterprise customers in 2015.

Former Telstra executive director of customer service delivery Phil Sporton will lead the joint venture as its CEO.

Telstra Global enterprise and services group executive Brendon Riley called the signing of the agreement “an important step in Telstra’s Asia strategy. [It] aligns with our aim to build new growth businesses that leverage the strengths of our unique NAS capabilities.

“The JV will offer an integrated end-to-end service, unique in the Indonesian market, by enabling NAS to be bundled with Telkom’s connectivity and sold through Telkom Indonesia and Telstra’s enterprise sales teams.”

Indonesia’s large population and relatively low but growing broadband penetration makes it an attractive proposition for Telstra as it seeks new growth markets to counter maturing core telecom revenues at home.

Telstra and Telkom have been negotiating over the terms of the joint venture since signing a memorandum of understanding in January.

Image courtesy of Mr.TinDC under CC