Colt announces expansion strategy into six new Asian markets

Colt Technology Services, a global digital infrastructure company, has unveiled an ambitious growth strategy aimed at expanding its presence in Asia. This strategy includes extending its operations into six new Asian markets: the Philippines, Taiwan, Vietnam, Thailand, Malaysia, and Indonesia. This move is designed to support the business growth of both Singaporean firms and global companies in the rapidly developing Asia-Pacific (APAC) region.

The expansion is bolstered by a non-exclusive strategic partnership intended to deliver competitively priced Ethernet and IP Access services throughout Southeast Asia. These services will cater to the needs of customers' SD-WAN requirements and encourage greater cloud adoption. Annette Murphy, the Chief Commercial Officer of Colt, underscored the company's commitment to the region through a scheduled investment of EUR €100 million over the next three years. This investment is a testament to APAC's growth potential and signifies Colt's resolution to cement its role as a leading digital infrastructure provider in the area.

Yasutaka Mizutani, President of Colt's APAC business, elaborated on the significance of the strategic partnership, emphasising how it will enhance service availability and ensure competitive pricing through economies of scale. He revealed that Colt's AI-driven insights estimate the target market size to be around EUR €2.2 billion, further endorsing the region's lucrative potential. Mizutani added that the company aims to offer comprehensive end-to-end network services globally, benefiting customers in Asia as well as those looking to converge their networks from other parts of the world into Asia.

Colt's recent advancements include the acquisition of Lumens' operations in Europe, the Middle East, and Africa, as well as expanding its reach in North America via a strategic relationship. The company has also increased its footprint in West Japan and South Korea. These steps are part of a broader vision to leverage global partnerships and extend its business reach into Southeast Asia.

Part of the newly formed strategic partnership's benefits includes offering similar levels of On-Net Product Service Level Agreements (SLAs) as those provided on Colt's own fibre networks elsewhere. This approach aims to streamline and improve the end-to-end customer experience and journey, including shortening the sales cycle by expediting quotation speed from several weeks to just a few days, and enhancing service delivery. Direct engagement for strategic opportunities and operational alignment with the strategic partner will further consolidate these improvements.

Reflecting on the APAC region's growth trajectory, Murphy cited data from GlobalData, noting that the average compound annual growth rate (CAGR) for B2B network services in APAC from 2022 to 2027 is projected to be 9.8%. This rate is notably higher than those in the United States (7.05%) and Europe (8.41%). Murphy expressed her optimism about the expanded footprint, stating it positions Colt as a frontrunner in the global digital infrastructure arena.

Recently, Colt has forged a partnership with AsiaNext, a global exchange for digital assets exclusively for institutions. This collaboration is part of Colt's larger strategy to innovate and expand its service offerings. Last year, the company launched cloud-based multicast data for capital markets in collaboration with Amazon Web Services (AWS), another initiative underpinning its robust capability-building efforts. A survey conducted in Colt's IT Priorities research indicated that 70% of companies plan to increase investments in technology infrastructure, with a particular focus on enhancing security and AI-learning capabilities.

Colt continues to deepen its relationships with strategic partners in the region to improve customer satisfaction and expand its market presence. This proactive approach demonstrates Colt's commitment to delivering superior digital infrastructure services and positions it well for future growth in the dynamic APAC market.