Reach and expertise: Pacific Internet has been at the top of its game for a long time, having launched its data network in 1991. Now the company is looking to further broaden its horizons, says CEO Tan Tong Hai - Best Asian Internet Service Prodvider: Pacific Internet, Singapore - Cover Story

Telecom Asia, July, 2002 by Ian Scales

Telecom Asia: Why do you think you won the award again this year?

Pacific Internet: I think there are both rational and emotional reasons, but I think there four main points. I call them our four cornerstones.

There is service and innovation on the one side--these are what I call the emotional reasons.

And then there is reach and expertise. These are the rational aspects. It's the combination of these four factors that sets us up. We need to have the reach because companies want to expand into different territories, but it's also important to be innovative with things like the Powerline trial.

Tell us about the Powerline trial in Singapore?

We want to show our customers that access and broadband is not just restricted to dial-up, ADSL and cable. Broadband could be through fiber or wireless or it could be through the powerline. If you are a country where the phone system is not [highly penetrated] you might want to consider the power [distribution network] as a means to access the net. What we're showing is one more way and it's the first in Asia

You mentioned other forms of mobile access. When it comes to 3G mobile do you see that playing a part in your service portfolio?

We see a combination of fixed and wireless as a solution to access. There is a mix, a combination. We see mobile operators as strong partners too. An important thing for Pacific Internet is that we are not owned by a telco and that means we can act more like a broadband consultant.

Is there an avenue for you to partner or perhaps become a Mobile Virtual Network Operator?

We are considering various operations. Partnership would be one way to get to market. But for mobile operators, they don't want to have to build a data network because it's not something you can build overnight. So Pacific Internet has built this data network since 1991 and that's an available platform. They can leverage on my network and I'll leverage on their mobile network and jointly offer a total solution.

Because you have a six-territory footprint you're almost uniquely able to provide regional business services. Could explain why this is important in your business mix.

We see ourselves in a unique position to offer regional connectivity including virtual private networks. This is the technology that a lot of businesses are asking for. You're not just talking about email, you're talking about your corporate intranet and pricing and product information. Beyond that, once you have the regional connectivity the next step is to ask for voice calls across that network. We say `yes you can deploy voice over IP technology,' but the main driver will be email and VPNs.

Do you see yourselves changing your structure in the future as competition intensifies?

No, we see ourselves looking at the total solution and with home working and the mobile office it's very difficult to disaggregate consumer and business market. Today people no longer just work in offices, they work at home. We say that the workstyle and lifestyle line is blurring. So we compete with the telcos by competing over the region and by crossing boundaries and offering a complete solution.

What's the long-term business game plan?

Right now our goal is to be the Asia/Pacific leader. We are now in six countries, now we need to grow into China, Malaysia and Indonesia. We have a proven business model with positive cash flow. We think our business model is right and you have to demonstrate you can generate cash.

Of course, if there are strategic investors who want to come in and have a potential partnership, we welcome it.

PROFILE

Company: Pacific Internet

Chief Executive: Tan Tong Hai

Main Shareholders: SembCorp Industries

Areas of operation: Singapore, Australia, Hong Kong, India, the Philippines and Thailand

Main products: ISP (dial-up, leased line, broadband), data hosting, e-business

Sales: $76.4 million

Profit: ($6.8 million)

Staff: Over 1,000 (regional)