Tuesday, August 26, 2014

Telstra Launches Low-Latency Connectivity Service for Global Trading

Australia’s leading mobile and fixed line operator, Telstra, has launched a low-latency international connectivity network between financial exchanges in Australia and the U.S. This offering, which targets the financial sector, will colocate points-of-presence (PoPs) that are being simultaneously launched at the Australian Securities Exchange’s (ASX) Australian Liquidity Centre (ALC) and the global CME Group’s data center in Aurora, Illinois. The ALC is a data center that enables members of the financial community to connect to each other, the ASX and other Australian financial markets as rapidly as possible. The CME Group’s data center is a colocation hosting service that supports electronic trading. These new offerings build on the impetus of Telstra’s PoP placements in the Singapore Exchange and the Hong Kong Stock Exchange, which were instituted in 2013.

According to recent indicators, revenue from Australia’s overall telecom industry from 2014 to 2015 will barely grow—by 1 to 1.5 percent—or remain stagnant. The fixed line sector will continue to decline. Telstra just reported a 7.5 percent decrease in fixed line revenue, but this will be somewhat offset by earnings from the National Broadband Network initiative—an Australia-wide project to upgrade the existing fixed line phone and internet network infrastructure. Additionally, consumers will no longer tolerate price increases, so operators will need to turn elsewhere to drive revenue. With this in mind, Telstra, which has more than twice as many mobile subscribers as Optus, Australia’s second-largest mobile operator, has chosen to focus its efforts on targeting specific sectors of the fixed line market.
Low-latency solutions address the financial services sector’s demands for instantaneous connectivity between financial exchanges. “Financial institutions are increasingly facing diverse challenges relating to speed, resilience and integrity of data,” said Matthew Lempriere, Telstra’s global head of the financial services market segment. He added that the new PoPs would help address customer demand around the world by providing improved market data and the lowest possible latency when accessing the U.S. and Australian marketplaces. With this move, Telstra is enhancing its offerings for the financial trading industry, an area that the operator has determined can be a revenue driver.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:

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