ITWire

The moves come in the wake of the sudden departure earlier this year of long time CEO Bill Barney and gloomy prognosis for the company from ratings agency Moody's. The plans also include the appointment of a new leadership team.

The company said it would divest certain parts of its business that are no longer considered core and in the fourth quarter would exit commoditised businesses such as the residential Internet service (which it operates in Australia) and wholesale voice segments. "This will enable the company to focus exclusively on building out high margin value added services offerings," it said.

Pacnet said that after "an extensive review of many options" recently appointed CEO Carl Grivner and the board had developed a strategic plan to "create a more nimble and competitive organisation, and enter a new phase of accelerated growth and profitability."

This plan includes "focusing exclusively on high margin core businesses, upgrading offerings, streamlining operations, and reducing costs...[focussing] expansion efforts on markets with the greatest opportunities and [investing] in the future through more technology and network upgrades, new data centres and a comprehensive suite of managed services."

Grivner said: "Our aim is to become the leading provider of network and technology solutions for enterprise and carrier customers in Asia Pacific...We currently have an unquestionable market leading position and Pacnet is a key gateway into Asia Pacific's vibrant markets."

The company plans to add value to its data centres by "introducing a wide range of new value added services such as full data management, virtual hosting, and security products."

It intends to commit more capital and resources to its China business and to work to more fully leverage its existing network and licenses in China including its domestic IP VPN license.

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