Asia Netcom and Pacific Internet Launch Merger

PRLog (Press Release) – Mar 16, 2008 – HONG KONG, 8 January 2008 -- Asia Netcom and Pacific Internet today announced the launch of its operational merger and unveiled strategic plans for the joint entity at a media/analyst briefing in Hong Kong. Under its new name, Pacnet, the company will go to market with a new brand.

“The next decade is all about Asia, and Pacnet is poised to be a unique ‘pure play’ provider focused on delivering solid communication solutions within Asia and into the region from anywhere in the world,” said Bill Barney, Chief Executive Officer, Pacnet. “We are pleased to be one of the region’s premier providers of broadband. We have unique assets that are not easily replicable.”

The key asset behind Pacnet’s growth is its EAC-C2C cable infrastructure, a 36,800 km submarine cable network that can carry up to 10.24 Tbps of capacity, of which only 240 Gbps is currently lit. The EAC-C2C network has an estimated replacement value of US$4 billion – based on the cost of building a similar infrastructure. However, at current market rates, analysts have assessed the true value of the EAC-C2C network at close to US$10.3 billion.

With the two companies merged, Pacnet can now offer solutions for retail consumers, Fortune 500 companies, as well as service the wholesale carrier market. Illustrating this, Barney pointed out that Pacnet’s comprehensive portfolio of products range from providing Asymmetric Digital Subscriber Line (ADSL) broadband connections into home offices, to industry leading Multiprotocol Label Switching-Internet Protocol Virtual Private Network (MPLS-IPVPN) services for global multinational corporations and wholesale capacity for carriers.

According to Mr Barney one of the key success drivers for Pacnet is its people, which number about 1,400 after the merger. “A main factor contributing to the rapid pace of integration between the two companies is a long-serving leadership team coming together from both entities. Most members of Pacnet’s senior management team have been with the company more than 5 years and average about 20 years of industry experience,” said Mr Barney.

As part of the company’s strategic plans to meet the recent surge of bandwidth demand in Asia, Pacnet has already embarked on its Next Generation Network upgrades which will increase network efficiency and reliability, and put the EAC-C2C cable network one step ahead of other cable systems available today. On the table are also plans for a new Trans-Pacific cable; further expansion into key regional markets; and new partnerships to enable both organic and inorganic growth for the company.

“We’ve never been in a better position in the market and 2008 will be an extremely exciting year for Pacnet,” said Mr Barney.