Pacnet to focus on enterprise and carrier markets
Asian provider Pacnet has announced a strategic plan to refine its business model through focussing its offering on enterprise and carrier customers and exiting the residential internet services and wholesale voice segments.
The move comes following the resignation of Pacnet CEO, Bill Barney, earlier this year and an abandoned acquisition of the company by Indonesia’s PT Telekom.
Pacnet said that following a review of its operations the company was commencing “a series of initiatives that will have a transformative impact”. They include focussing on its high margin core businesses, upgrading its offerings, streamlining operations and reducing costs.
The company will divest assets it considers non-core and exit the residential internet service and wholesale voice segments in the fourth quarter to focus more on value-added services.
It will also reduce its global workforce in non-strategic areas by approximately 30%, lowering annual expenses by an estimated $30 million.
Carl Grivner, who was appointed Pacnet CEO in July of this year, and a new leadership team, will oversee the implementation of the strategy.
“Our aim is to become the leading provider of network and technology solutions for enterprise and carrier customers in Asia-Pacific,” said Grivner. “We intend to leverage and build on our very strong foundation but we will also make important and necessary changes that will refine our business model and enable Pacnet to enter a new phase of accelerated growth and improved profitability.”
New appointments include, Jim Fagan as president of managed services, Cardi Prinzi as leader of enterprise markets, John Garrett as MD of Southeast Asia and Andy Lumsden as CTO.
Grace Guang, Pacnet’s general counsel, will also take on the position of chief of staff, while Anne Adam will head human resources and Brett Lay will continue in his position as CFO.
Pacnet has also restructured its sales team into two separate sales organisations, enterprise markets and carrier services, and set up a dedicated managed service unit to enhance its products and services and build up its data centre platform.
Initiatives outlined in the strategy also include greater investment in technology and network upgrades and an expansion of the company’s position in China through greater capital and resource investment and utilisation of its licences in the country.
The strategy will launch in the fourth quarter of 2012 and continue over the next three years.