Saturday, September 16, 2006

Scale player the future is IP-VPN, says Equant, the France-based global carrier that took out the Best Wholesale or Managed Services prize. COO Danie

Daniel Caclin: Equant is a company that provides data service solutions to customers worldwide. What is important is to provide solutions that become the basis of their information systems and that they support mission critical applications. Hence, what we have been doing is to provide what our customers want and they want reliable solutions and leading-edge technologies. Hence, we have launched a few important products, the last one being VoIP. It is one of the most significant products in the last 12 months.

In the Asia Pacific, we have been very successful in Australia. One of our largest customers has been [Australian-based mining conglomerate] BHP Billiton. We have provided leading edge IP-VPN and it has been one of the most successful implementations. We have also worked with customers like Samsung Integration to support the whole chaebol.

What is the strategy for Asia?

The strategy for Asia is really part of the worldwide strategy. There is no such thing as American multinationals, no European multinationals, no Asian multinationals. There are only worldwide multinationals. We provide global connectivity. Clearly, Equant provides data center services and solutions around the world. It is important for Equant to provide that seamless connectivity to these corporations.

The execution in Asia is no different than anywhere. We are addressing large corporations and we speak the language of these corporations. We speak the language of the banking industry. We speak the language of the mining industry. The execution is not region-specific but customer-specific.

How much does Asia account for Equant's global business?

10% of Equant's invoicing worldwide comes from Asia. Hong Kong, Singapore, Japan, New Zealand and Australia have enjoyed significant growth. We service 2,000 multinationals in the region and 800 of them are headquartered in the region.

Industry analysts expect the growth rate for the managed services business to be twice the rate of the US and Europe in the next ten years. Equant is expected to follow that trend.

We continue to invest in Asia what is necessary. We are investing in global capacity between cities, in data equipment and in backend systems. We are buying a lot of information systems in Asia. It is important to note that when we buy a system like a sales information system, it is to support the global business and not just the Asia Pacific business. What is significant with Equant is that we provide the same service, same level of support reliability to customers around the world.

Since striking a deal with Equant, China Network Communications (CNC) has acquired Asia Global Crossing [now Asia Netcom]. What are the implications of this?

Asia Global Crossing is a capacity provider [sic]. It is a company that provides capacity between two network centers. Equant provides data services to corporate customers.

[CNC's purchase of Asia Global Crossing] is a good move for cost effectiveness in the region. Our partner is able to provide the network capacity. There is no direct competition. Equant does not provide fixed line services to any customer.

CNC is managing Equant's project portfolio. We have more than 100 customers in China and connect to more than 800 sites.