Media Release, 11 May 2015

Telstra today announced its multinational customers can benefit from more direct and low latency network connectivity in China thanks to the network integration of Telstra and Pacnet Business Solutions China (PBS), a foreign-invested joint-stock company (unlisted).

PBS was the first foreign company licensed to provide IPVPN services and network services in China, with its footprint extending to 23 provinces across the mainland including Tianjin, Chongqing, Shenzhen, Beijing and Shanghai.

Jim Clarke, Director of Marketing, Products & Pricing – International, said Telstra’s network reach and data centre capabilities had greatly increased through the company’s acquisition of Pacnet Limited in April 2015, including the addition of the largest privately owned intra-Asia cable network, advanced software defined networking solutions and this new and expanded connectivity footprint in China.

“With a population of 1.3 billion, China recently became the second largest economy and is increasingly playing an important and influential role in the global economy, driven by GDP growth averaging approximately 10 percent a year1. As a result, we’re seeing demand for data connectivity grow exponentially as an increasing number of Asia-Pacific, European and American headquartered businesses look here for short and long-term business opportunities.

“PBS has witnessed first-hand the dramatic demand for ICT and data centre services from both local enterprises and multinational corporations operating in China and we believe they have a unique and exciting combination of assets that will enable us to offer a truly-differentiated solution to our customers. We look forward to leveraging their deep network footprint, to extend our service coverage on the mainland and provide customers the same security, redundancy and quality of service offered on the Telstra network,” Mr Clarke said.

Tracy Jin, Product & Marketing Director, PBS, said the company was the first Sino-foreign telecommunications JV to have been awarded licenses by China’s Ministry of Industry and Information Technology (MIIT) and since 2008, had consistently broadened the reach of its connectivity solutions around the country as corporations expand their businesses across China.

“Off the back of China’s ongoing robust growth, we continue to make significant investments in our infrastructure and believe the ongoing expansion of our network capabilities cements our role as a premier gateway into Asia’s largest market, and the fastest growing telecommunications and e-commerce markets globally.

“Telstra and PBS are aligned and committed to supply customers with robust connectivity services, not only into the larger provincial centres, but also within the more challenging locations which multinational enterprises are present. We’re looking forward to working together to deliver services, driving customers’ business success across the mainland,” Ms Jin concluded.

1The World Bank, China Country Overview, 2015.