June 29, 2016

M&A movement in Australia’s telecommunications sector

Telstra just branched its services into the mining industry.

Telstra, Australia's largest telecommunications and media company, recently made media waves when it announced its intentions to purchase fellow Australian provider CBO Telecommunications. While the precise sum has not been disclosed, Telstra simultaneously announced it formed Telstra Mining Services as a strategic investment arm in the mining industry.

Telstra acquired CBO's mining communications technology services business in the deal, which will allow the leading telecommunications provider to effectively branch into the oil, gas and mining industry. CBO already has a solid reputation in the industry and boasts a portfolio of influential mining customers that will allow Telstra Mining Services to thrive.

This deal came a day after Telstra announced its future 2016 launch of its Telstra Smart Home platform, which will integrate devices from various suppliers and support a vast degree of new products, applications and technologies on any electronic device. This moves showcase Telstra's drive to further broaden its market reach, whether through a smart home platform or the mining industry.

David Keenan, head of Telstra Global Industries, said in a company press release that the creation of Telstra Mining Services through the acquisition of CBO's mining technology service business, will dramatically raise asset productivity and staffing efforts. Furthermore, the newly created division will provide high-bandwidth networks and mobile solutions that will benefit their loyal customer base.

"Building on our strong organic foundation, the acquisition of CBO's network consulting, engineering and services business was the next step to expand our communications business beyond the mine gate," Keenan said. "This investment means we can confidently meet the industry's communication needs at Australian mine sites. With the addition of Jeannette McGill, Eric Nettleton and the CBO team to the existing Telstra Mining Industry team, we have significantly strengthened our mining specific domain expertise."

Keenan went on to explain that this acquisition is only the first step of a continual drive to create "tailored technology innovation" for all of its mining clients throughout the world.