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CW Optus finally taming the broadband dragon
Emma Connors
Page 47     ( 556 words )
Tuesday, 15 Feb 2000
From section: Computers e-Strategy
Publication: Australian Financial Review


The humble home internet user is the key to building a successful broadband interactive business, according to Cable & Wireless Optus director of multimedia and internet, Donna Lachance.

Name an internet player, or any wannabe internet player, and it's likely to be in discussions with C&W Optus.

Portal operator Excite@Home is believed to be contemplating transferring its Asia Pacific licence to the telco, and would-be digital television stars Microsoft and Oracle are interested in C&W Optus's emerging broadband credentials. News providers including the ABC are eager to strike content deals. Then there are the banks and the retailers which want to add an e-business element to their consumer offerings.

C&W Optus director of multimedia and internet Donna Lachance is reluctant to give detail on emerging deals but notes determining the right partners is just one part of a complex corporate balancing act.

``Everyone is trying to put together the elements of a successful new media company. We think Optus has terrific access to customers, demonstrated success in getting communication products into the home or business, and reliability in delivery of telephony grade services in the internet market.

``But the challenge for us is getting the market to recognise the value of what we do. The problem lies in traditional valuations versus new media valuations."

Lachance is hopeful the market is now waking up to the fact that the next phase of growth should come from bricks and mortar companies. ``It's time to take this game from the experiment stage to the real world."

This is one reason why Lachance does not favour spinning off an internet business.

``If you spin it off and don't maintain ties to the main corporate [entity] you have not done the full job."

After a delayed start C&W Optus is now, according to Lachance, successfully taming the broadband dragon. In Brisbane, Melbourne, and Sydney the company hopes to have signed up roughly 22,000 customers to its high-speed cable internet access service by the end of the year. Add these to the 130,000 odd now using the carrier's dialup service and Lachance maintains the company has the base it needs to build a formidable interactive business.

``Success in the ISP market is important because it is the first digital relationship customers have. The trends are unmistakable. Digital communications will exceed voice traffic and the amount of e-mail already exceeds snail mail. There is going to be a battle over e-mail addresses as these become increasingly tied to communication services.

``[However] There are three key questions we don't know the answer to. We don't know what platform or set of platforms will be the winner. We don't know exactly what the business model will be, that is, where the value will be created and which parts of the business will make the money. Most importantly, we don't know what the winning consumer experience will be."

But Lachance is confident C&W Optus has the necessary entrepreneurial management.

``You have to allow the new age and the traditional to co-exist and that's what Optus does well. Mainly because leadership gets it. If you look at the top management team, I'm actually the oldest manager of a line of business and I'm 44."


 
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