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November 8, 1999
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| FOR IMMEDIATE RELEASE | ||||||
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NTT Communications in partnership with Davnet
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| NTT Communications Corporation (NTT Com) today signed an agreement with Australia-based Davnet Limited (Davnet) concerning strategic partnership to jointly provide high-quality network services to corporate customers (in particular multinationals) in Australia. Under the terms of the agreement, NTT Com will obtain a 49% stake in Davnet Telecommunications Pty Ltd. (Davtel), subsidiary of Davnet, after the reorganization of the Davnet Group. The agreement is subject to the approval of the Australian regulatory agencies. The agreement calls for NTT Com to dispatch two directors to Davtel to participate in the company’s management. The two companies will jointly provide various IP-based (Internet Protocol based) services and other communication services in the Australian market. The total size of the transaction will be approximately AU$118.8million. The Davnet Group is a leader in the provision of IP-based high-speed broadband direct access for clients in the Central Business District (CBD). It also provides value-added Internet services, system integration and voice services to corporate users. The Davnet Group was chosen as a partner because of its solid market position in the corporate segment in Australia and its promising future. Australia has a large IP market with approximately 2.5 million Internet users (source: 1999 year end projection by Paul Budde Communication). Also, the existence of many multinational corporations and strategic geographical location make it one of the most important telecommunication hubs in the Asia-Pacific region. To date, NTT Com has invested and partnered with Verio (US), StarHub (Singapore), PLDT (the Philippines) and HKNet (Hong Kong). These strengthen the Arcstar IP and data telecommunication services for corporate users in the Asia-Pacific region. With the partnership in Australia, NTT Com will expand its coverage of IP-based high quality telecommunication services. By integrating the telecommunication services provided by the partners, NTT Com will be able to meet the needs of its customers globally. Through this strategic tie-up with the Davnet Group, NTT Com will strengthen its Arcstar network services for multinational customers in Australia. This partnership between the Davnet Group and NTT Com will benefit customers in the following ways:
About Davnet Group The Davnet Group, a specialist in the provision of IP-based telecommunications services was established in 1998. The Davnet Group currently employs approximately 160 employees and is led by its CEO and managing director Stephen Moignard. Davnet’s stock is listed on the Australian Stock Exchange. For more information, consult Davnet’s homepage at: http://www.davnet.com.au. Attachment: Davtel’s organization structure after NTT Com’s Investment |
 For more information, please contact. |
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