Telstra snaps up O2 Networks



news The nation’s largest telco Telstra today announced it had acquired O2 Networks, a leading Australian provider of network and security consulting and integration services for enterprise customers, in a deal reported to be worth $60 million.

Headquartered in Melbourne, O2 has more than 100 staff serving 370 customers and has designed, implemented and managed networks for clients including some of Australia’s largest financial institutions and government owned enterprises. The company’s website lists a plethora of customers including Telstra itself, Sydney and Deakin Universities, law firms such as Blake Dawson, retailers like Kmart, financial institutions such as Macquarie Bank and more.

Telstra’s Network Applications and Services (NAS) Executive Director Michelle Bendschneider said the acquisition would contribute to Telstra’s strategy of expanding its network services.

“As our customers shift towards cloud-based environments, they increasingly require capabilities to securely integrate networks, data centres and cloud-based applications,” Bendschneider said. “O2 significantly enhances this capability within Telstra’s NAS portfolio and this acquisition is consistent with our strategy of providing advanced network-based services that are highly valued by our customers.

“O2 have a reputation for deep-domain expertise and speed to market with emerging technologies including wireless network integration and next generation security threat detection and mitigation solutions. We value O2’s consulting-led approach to engaging with customers, ensuring the right solutions are developed rather than just focusing on the underlying technologies that are delivered. Following our recent acquisition of NSC Group, we continue to invest in capabilities that improve the efficiency of our customers’ businesses and enhance the way they serve their own customers,” Bendschneider said.

O2 Networks Managing Director Euan Prentice said O2 and Telstra enjoyed a long-standing relationship and the combination of O2 and Telstra was logical for both companies.

“We’re excited by the opportunity for O2 to grow as part of Telstra and to provide the same excellent service we’re known for to even more customers. We have a long history of working with Telstra and we know that O2 will be an excellent fit. We also look forward to enabling our people to broaden their career opportunities within Telstra,” Prentice said.

Telstra said it continues to build momentum in its NAS portfolio, which provides enterprise and business customers managed network and security services as well as cloud and communications services. In the year ended 30 June 2013, the portfolio increased revenue by 17.7 per cent, including the commencement of a $1.1 billion six year contract with the Department of Defence as well as international agreements with Jetstar and Fitness First.

Ms Bendschneider said the O2 brand would be retained for the time being and all O2 staff will continue to be employed by Telstra after the acquisition. The acquisition is complete and was not subject to ACCC approval. The Australian newspaper has placed the price of the deal at $60 million.


  1. I think Telstra don’t fully understand what it is to be a young nimble and agile company. They think they are getting some magic process formula for being on the latest technologies and adopting and applying these new technologies. Really it’s just the opposite, you hire talented and engaged professionals that have a deep enough understanding of networking and IT systems that they can learn and figure out new products on their own with minimal training (unfortunately often this means hiring young), don’t try and bog them down with unending slow processes, let them respond to their customers needs and requests in a timely manner. Telstra being a large corporation codifies every interaction in unwieldy processes designed by multiple tiers of management to protect themselves and thereby remove all agility and employee inpiration and engagement. If they manage to keep 02 away from the corporate process jungle, then they will continue to breath and thrive.

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