Telstra and SingTel look to cloud and network divisions for growth
13 February 2014 | Sophie Donoghue
Australia's Telstra and Singapore Telecommunications (SingTel) have announced that they are both separately looking to expand their cloud and network businesses, Reuters reports.
Both operators released their profit results today and noted potential in the network applications and services (NAS) market.
Telstra reported that revenue from the company's network division has increased by 29% in the first half – which is 6.4% of total revenue – and is reportedly looking at partnerships in Asia.
The Australian operator acquired Melbourne-based cloud company O2 Networks in January in a A$60 million ($52.8 million) deal, in a bid to boost its NAS portfolio.
SingTel witnessed a 26% increase in network services revenue in Australia in the last quarter. The operator said it was hoping to expand network service opportunities in Singapore, Hong Kong and China.
"In Singapore, we see huge growth opportunities in areas around cloud," said Bill Chang, SingTel's Group Enterprise CEO.
According to research by International Data Corporation (IDC), the NAS market in Asia is expected to grow by 7% to $44 billion in the Asia-Pacific region this year.