International operator, iBasis has struck a deal to acquire Telstra International’s wholesale voice, mobile (IP exchange) and messaging customer contracts.
iBasis will also obtain exclusive rights for international wholesale voice services for Digicel Pacific, part of the Telstra International portfolio, covering several Oceania countries including Papua New Guinea, Fiji, and Samoa.
The global IP voice and IPX markets are a challenging environment where reliable new revenue streams are hard to come by. IP voice continues to show modest growth while 5G has not yet turbo charged IPX demand related to high-bandwidth mobile roaming services.
At the same time, carriers continue to feel the pressure of increased operational costs as well as the need to modernise their network and pivot towards next-generation messaging and IPX-based solutions.
Consolidation is inevitable
Consolidation of the global IPX market is inevitable as smaller providers struggle to justify investment in next-gen services while most IPX buyers prefer dealing with providers able to deliver services over a large number of markets.
Such pressures make the acquisition of Telstra’s IPX and wholesale IP voice business a smart move for iBasis. The communications provider is one of the most significant global voice and messaging providers but with a relatively modest presence in APAC. While the proposed acquisition will not give iBasis pan-region coverage, it will establish it in two of its most important economies (Australia and New Zealand), strengthen its position in Hong Kong and Singapore and give it a minor degree of differentiation with a presence in multiple island nations across APAC.
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By GlobalDataiBasis strategy for growth
This announcement is the first acquisition for iBasis since CEO Patrick George took the reins of the company in August 2024 and closely aligns with the company’s strategy to grow inorganically in emerging markets.
Tofane Group, iBasis’s parent company, has made several acquisitions over the last six years adding additional capabilities and reach for the company. Tofane has the support of its financial investors for the business in its next phase of growth. As carriers continue to review their operations and look to offload their struggling legacy communications assets, it’s expected that more takeover moves will be made by iBasis as the company continues to expand its presence across more emerging markets.
Brendan Swan, Senior Research Analyst, GlobalData stated: “This deal also makes strategic sense for Telstra with its international business struggling to return to positive growth over the last couple of years after the company executed its T22 strategy to simplify the business and its product portfolio and to remove costs from the business.”
Earlier in 2025, Telstra embarked on its new ‘Connected Future 30’ strategy. The company will refocus its attention on its core network infrastructure while looking to exploit its extensive terrestrial and subsea cable infrastructure footprint to deliver critical connectivity across Asia Pacific, Europe and North America.
“This deal is also the first time the company has actively leveraged its Digicel Pacific assets”. added Swan.
