Telstra looks to expand into IT sector

6 Apr 2004

Australia’s largest telco Telstra has revealed that it is considering making a takeover offer for listed IT services company Kaz, as part of a move to expand its reach into sectors beyond its traditional remit. The two companies have confirmed that they are involved in talks, but neither has confirmed that a sale will actually go ahead. Kaz is mainly involved in business process and traditional IT infrastructure outsourcing, with a large proportion of its sales coming from the government sector, an area where Telstra has been losing out in recent years. Telstra hopes it will have more success at diversifying its operations this time around than it has done in the past; it was recently forced to write off its stake in Hong Kong-based Reach when the company became defunct.

Meanwhile Telstra has announced plans to undertake trials of a new fibre-optic technology in Brisbane, which will provide broadband internet, telephony and pay-TV services through a single cable. The pilot service will be launched in June, and if successful will be rolled out commercially by 2010.