The Future

Reach is the new joint venture between Australia's Telstra and Hong Kong-based Pacific Century Cyberworks (PCCW). Although the name is new, Reach is the progeny of two well-established electronic information and telecommunications companies. Reach brings together the international infrastructure assets and business experience of two of the leading wholesale providers of voice, data and internet connectivity in the Asia-Pacific region: Telstra's global wholesale business, and the international wholesale division of PCCW-HKT International.


In April 2000 the first details of the joint venture were released to the market.

Telstra's chief executive officer Dr Ziggy Switkowski said on August 24 2000 that the alliance would put Telstra on the map in Asia and open up significant growth for the company beyond the limitations of its traditional Australian markets: "The natural fit of geography, vision, people, skills and assets between our two companies creates in a very short time a powerful force in Asian and potentially global communications."

The chairman of PCCW, Mr Richard Li, echoed Switkowski's comments and said on April 12 2000 that "(the) alliance with Telstra is another step towards achieving our vision of creating the world's largest broadband internet business".

During 2000 changing market conditions led to a revision of several terms of the alliance, which were announced in October. Meanwhile, the integration activity continued behind the scenes and Reach was one of three Telstra-PCCW joint ventures that began operations on February 7 2001.

The Future

By 2005 Reach aims to become one of the top global connectivity providers, leveraging off a strong position in Asia. Reach sees its customers as international and domestic carriers and value-added service providers, including the following:

  • voice resellers;

  • internet service providers;

  • application service providers; and

  • internet content providers.

Reach's customers will be a combination of established carriers seeking pan-Asian and global connectivity and new market entrants acquiring services to offer global connectivity to their customers.

Reach has positioned itself as a provider of connectivity, meaning capacity plus value added services such as switching, network management and an innovative range of voice, data and IP products. It is poised to capitalize on the growth of the Internet and data connectivity in Asia and throughout the world.

For further information on this topic please contact Ginerva Martin at Blake Dawson Waldron by telephone (+61 2 9258 6000) or by fax (+61 2 9258 6999) or by e-mail ([email protected]).

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