Reach, the joint venture between Telstra and Hong Kong's Pacific Century Cyberworks (PCCW) have announced plans to acquire the Asian assets of US-based broadband infrastructure company Level 3 Communications.
Under the terms of the agreement, Reach will take over Level 3's ownership interests in its North Asian undersea cable system, Tiger, connecting Hong Kong and Japan, and its Japan-US cable systems, a Reach statement said. Other Asian assets and operations including customers, in-country networks, data centers, and US$90 million will also be part of the transaction, the company said.
At the same time, Reach will assume Level 3's capital and operating cost obligations as of November 30, including $170 million for the completion of the submarine cable systems, the statement said.
According to Reach, the acquisition is aimed at accelerating Reach's entry into the Japanese, Korean, and Taiwanese markets.