NETWORK WORLD NEWSLETTER: CAROLYN DUFFY MARSAN'S ISP NEWS REPORT
09/08/04
Today's focus:  Telstra deal to expand U.K. services

Dear [EMAIL PROTECTED],

In this issue:

* Telstra picks up PSINet businesses in U.K. to expand services
* Links related to ISP News Report
* Featured reader resource
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Today's focus:  Telstra deal to expand U.K. services

By Carolyn Duffy Marsan

Telstra has purchased the U.K. businesses of the once 
high-flying but now defunct PSINet in a bid to expand its suite 
of corporate IP services in the region.

The acquisition provides the Australian ISP with an additional 
3,200 corporate and government customers in the U.K., including 
GMTV and the City of Sunderland. Telstra already supports Hilton 
Hotels and De Beers among its 5,000 U.K. corporate customers.

The PSINet deal represents Telstra's third acquisition of 
network assets in the U.K. in the last nine months. Previous 
Telstra acquisitions include Powergen's network infrastructure 
and Cable Telecom's reseller channel.

The acquisitions are designed to improve the reach and capacity 
of Telstra's IP network and services in the U.K., which is home 
to many European headquarters operations for multinational 
corporations.

"Telstra's been active in the U.K. for 13 years. We never 
actually offered national services. Our focus was on 
city-to-city services for Australian-based multinationals," says 
David Thorn, the managing director of Telstra Global Business 
Offshore.

"The acquisition of a national network platform allows us to 
support organizations that have more than one site outside the 
cities, such as Microsoft and Adobe, which have operations in 
the Western end of the U.K," Thorn says. "Now Telstra can 
readily service those customers instead of handing them off to 
an alternative provider."

Thorn says the PSINet acquisition is the final piece of the 
puzzle required to service U.K. customers because it includes 
managed data, security, hosting, storage and disaster recovery 
services. The acquisition also will speed up Telstra's ability 
to offer VoIP services in the region, which Thorn says will be 
available before year-end.

The PSINet acquisition "significantly depends on our portfolio 
of services," Thorn says. "We have sufficient capacity to take 
all the current PSINet traffic - which is all IP-based - and 
overlay it on our national transmission network, which will give 
us some immediate cost and control savings. But more important, 
this acquisition allows us to accelerate our offering of 
converged voice and data services."

PSINet's U.K. operations were previously owned by Israel 
Corporation Ltd., which purchased the assets in 2002. Telstra 
paid 50 million pounds in cash for the U.K. businesses of 
PSINet.

RELATED EDITORIAL LINKS

Telstra's plans in the U.K.
http://telstra.co.uk/about_us/latest_news/psinet_uk
_______________________________________________________________
To contact: Carolyn Duffy Marsan

Carolyn Duffy Marsan is a senior editor with Network World and 
covers emerging Internet technologies and standards. Reach her 
at <mailto:[EMAIL PROTECTED]> 
_______________________________________________________________
This newsletter is sponsored by Xerox 
Want to learn the key steps to building a document output 
strategy that will enhance productivity and reduce costs for 
your organization? 

Start by downloading Xerox's white paper, Optimizing Document 
Output ROI. See how Xerox's solutions can help you manage 
devices, reduce costs and even boost productivity. 
http://www.fattail.com/redir/redirect.asp?CID=80880
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