Hong Kong-based CK Hutchison and Qatari Ooredoo Group announced on Thursday they were merging operations in Indonesia to create a new number two mobile telco called PT Indosat Ooredoo Hutchison. Estimated revenue of the entity made up of Indosat Ooredoo and Hutchison 3 Indonesia (H3I) is slated to be around $3 billion. Annual savings from the merger are expected to amount to $300 million to $400 million as they are realised over the next three to five years. Ooredoo Group has a 65% interest in Indosat Ooredoo through its Ooredoo Asia holding company. CK Hutchison will get half of Ooredoo Asia by swapping its stake in the merged entity for 33% of shares, and ploughing $387 million into the Asia business for the remaining 16.7% stake.
After a competitive tender process, Indosat Ooredoo has entered into a sale and leaseback arrangement with Edge Point Indonesia for over 4,200 of its mobile towers. The transaction is valued at $750 million and the lease is in place for a decade. The telco said the sales would allow it to spend capital on improving its network performance and launch "innovative new digital solutions" for customers. "The deal marks the third and final sale of assets from Indosat Ooredoo's high-quality tower portfolio that moves us towards a more asset-light model and greater focus on delivering outstanding mobile digital services to our customer," president director and CEO Ahmad Al-Neama said. In 2019, the telco sold off 3,100 towers under a similar agreement for 6.4 trillion Indonesian rupiah in cash, which is in the order of $450 million at the time.
Telstra is leveraging its joint ventures in China and Indonesia for growth of its network applications and services (NAS) business, after admitting a "reluctance" to enter foreign markets to serve domestic enterprises or multinationals on a global scale. Martijn Blanken, group managing director for Telstra Global Enterprise and Services, and the executive responsible for Telstra's presence in China, said that for the most part, Telstra is "very deliberately and very consciously" focused not on running global operations for multinational corporations and international carriers, but rather simply those companies' Asian and Australian operations. "We're quite reluctant to go into particular countries and start serving what we call domestic enterprises," Blanken said at the Telstra Vantage 2016 conference in Melbourne on Wednesday. "The two exceptions to that rule is ... in Indonesia, the joint venture with Telkomtelstra, which continues to be a strategic growth area for us; and in China, we also have a joint venture, we call it PBS: Pacific Business Services [Pacnet], where we both service multinationals that are coming into China and out of China, but also India and other Chinese-specific enterprise and government customers." The carrier is therefore utilising both Pacnet and Telkomtelstra for building up its international NAS business.
John Maddison, EVP of Products and CMO at Fortinet "Fortinet Secure SD-WAN empowers MSSPs with a Security-driven Networking approach through the convergence of networking and security to deliver value-added services that solve their customers' biggest challenges, such as securing digital acceleration and enabling work-from-anywhere. Seamless integration with the Fortinet Security Fabric, the industry's highest performing cybersecurity mesh platform, ensures MSSPs can easily grow their business with new and differentiated managed SD-WAN and security services." News Summary Fortinet, a global leader in broad, integrated and automated cybersecurity solutions, today announced seven new service providers – Convergia, Eastern Communications, Halo Global, Lintasarta, Ooredoo Qatar, PLDT, and Transtelco – have added Fortinet Secure SD-WAN to their managed service portfolios. Fortinet's industry-leading Secure SD-WAN solution enables MSSPs to deliver high-value security-driven networking services to customers, tap into new market opportunities, and grow their business by uniquely meeting customer needs. Growth opportunities for MSSPs are on the rise As the use of business-critical, cloud-based applications continues to increase, with a distributed infrastructure of remote and branch offices and an expanding workforce that requires work-from-anywhere capabilities, organizations need to adapt.
Google is investing in another massive undersea fiber-optic cable as a part of its plans to build out network connectivity around the world. The company announced Wednesday that it is helping to fund a project called Indigo, which will connect Jakarta, Singapore, Perth and Sydney to one another. The cable will run for approximately 9,000 kilometers (almost 5,600 miles) and provide a capacity of roughly 18Tbps (bits per second). It's being built to bring users more connectivity in a region that has growing internet needs. Google has now invested in five submarine cables in the Asia-Pacific region and seven overall.