Telstra questions NBN deal rumours

Connxion Ventures to buy Telstra Singapore's Kaz unit

Telstra (ASX: TLS) has moved to quash market speculation that it has concluded negotiations with the NBN Co and Federal Government, claiming the rumour is “unfounded”.

In an ASX notification, Telstra said that as it had previously noted, negotiations were continuing on the NBN and that they remained “incomplete and confidential”.

A March market update on the state of negotiations prompted strong criticism from both Optus and the Compititive Carriers Coalition which said Telstra’s announcement translated into a demand that taxpayers spend billions to bail the company out of the "hole it has dug for itself"..

In further Telstra news, the telco’s Singapore business, has entered into an agreement that will see Connxion Ventures acquire the business, assets and customer contracts of Kaz Singapore.

Kaz Singapore supplies data management, IT infrastructure support services, call centre operations, IT outsourcing and support.

According to Connxion Ventures, Kaz Singapore’s data centre would allow it to internally house its core data services which are presently outsourced to IBM among other data centres.

The move is also expected to cut down the company’s data centre costs and increase margins on a number of contr5acts which use data centre services.

Connxion’s CEO Bill Brooks said the acquisition would allow Telstra International and Connxion Ventures to co-operate on joint projects.

According to Catherine Reynolds, head of strategy and marketing at Connxion, the announcement marked the beginning of a new business model for the company, giving it the capability to expand its data and transactional service offering, providing its clients with real time online customer intelligence. T

"[Customers] have the ability to now turn cost centres into profit centres, by adding value to existing CRM systems by capturing, analysing, storing and retrieving customer information," Reynolds claimed. "The company is answering the ‘CIO’s dilemma’, where a CIO is working with an existing legacy system in which their data is separated from a company’s dynamic networks."

Rumours about the deal circulated during mid March, prompting the company to issue a statement on its negotiations for Kaz Singapore.

Join the newsletter!

Error: Please check your email address.

Tags Kaz SingaporeNational Broadband Network (NBN)nbn coNBNTelstra

More about BillFederal GovernmentIBM AustraliaIBM AustraliaOptusTelstra Corporation

Show Comments

Market Place