Case Studies

Establishing a Global Network Hub with a Virtual Point-of-Presence

The Axiata International Hub consolidates international traffic across its subsidiaries to create new efficiencies and increase purchasing power

Pan-Asian mobile group Axiata selected Epsilon to establish an international hub to simplify the management of interconnects and partner relationships across its multiple mobile subsidiaries. 

Axiata serves close to 230 million mobile subscribers across seven countries. In each of these countries, a subsidiary had been interconnecting and partnering with international operators leading to duplicate relationships across the group and an increasingly complex approach to international connectivity.

Many of its subsidiaries had similar agreements with the same operators and could benefit from a unified approach to interconnects. Epsilon saw an opportunity to rationalise these relationships and simplify how Axiata’s subsidiaries connect to partners globally. The answer was to deploy Epsilon’s virtual point-of-presence solution, ePoP, in Singapore and consolidate Axiata’s interconnects in a single hub, reducing costs and complexity while increasing purchasing power for the group.

Axiata’s subsidiaries now have the advantage of the group’s scale while negotiating with international operators and have a single source for partner relationships. Each subsidiary maintains its autonomy while benefiting from the efficient use of the resource. The ePoP solution plays to Axiata’s strengths as a growing mobile group while giving it an efficient want to manage international connectivity.

THE CHALLENGE
As one of Asia’s largest mobile groups Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India and Singapore. Before deploying an international hub, each operator had its own approach to interconnects and partnerships and was allocating resource to negotiating and managing these relationships.

The challenge for Axiata was to find a way to consolidate these interconnects and relationships into a single place where each subsidiary could benefit from the group’s reach and scale. The amount of duplication of effort amongst subsidiaries was impacting the group’s operational efficiency and was not using the inherent advantage of being a large mobile group.

To do this, it could establish a hub itself but that would be complex and require CAPEX-intensive investments. The higher the upfront investment the longer it would take to see a return and the benefit of newly gained cost reduction

THE SOLUTION
After working closely with Axiata to assess its needs, Epsilon proposed using its ePoP solution to consolidate all interconnects into a single hub in Singapore. Its virtual PoP solution was able to deliver the benefits Axiata was looking for with a rapid deployment and a CAPEX-free model.

The ePoP solution leverages Epsilons 500+ pre-connected carriers on its Global Network Exchange as well as its pre-existing colocation facilities to offer Axiata a complete virtual PoP solution. Epsilon has PoPs in 22 cities across North America, Europe, Asia and the Middle East with increasing presence in high-growth markets around the world.

This fully-managed presence allows Axiata’s subsidiaries to interconnect with their operator partners from a single hub while developing new relationships efficiently. As group traffic grows, its virtual presence can scale to meet its needs without adding further complexity to its operation.
PARTNER:
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ePoP offered Axiata a way to reduce costs and drive efficiencies across the group. The Axiata International Hub means that each subsidiary no longer has to pursue its own interconnects with partners and has the added advantage of purchasing as a group. Its unique footprint and commitment to serving high growth markets is a great fit for us and we are delivering real benefits at the group level and through to Axiata’s subsidiaries across Asia.

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Jerzy Szlosarek

CEO at Epsilon

BENEFITS
  • Reach - Axiata has access to 600+ carriers on Epsilon’s Global Network Exchange allowing it to select the best carriers to meet its needs 

  • Simplicity - Axiata has a single hub for its interconnects and partnerships reducing the need for individual subsidiaries to manage these relationships 

  • Scalability - ePoP is a scalable solution that is ready to grow as Axiata’s traffic demands increase 

  • Time-to-Market - The Epsilon solution was in place and ready for a rapid deployment for Axiata 

  • Flexibility - Epsilon‘s network supports the full range of TDM and Ethernet ports to allow for full flexibility across its global footprint 

  • Capex-Free - The virtual presence model requires no CAPEX investment from the operator allowing it to appreciate the cost benefits of ePoP immediately 

  • Synergy - ePoP gives Axiata the ability to negotiate with international operators as a group enabling them to increase volume discounts and achieve better rates

When a mobile group consolidates its interconnects in one place it saves on network costs and that benefits them today and well into the future. The savings will only increase as the operation grows. This is a model that has worked in Asia for Axiata but has the ability to help other mobile groups to increase their margins and leverage their scale in the international market. It is a proven model that is a simple and efficient way to increase profitability.

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Jerzy Szlosarek

CEO at Epsilon

THE FUTURE
The relationship between Axiata and Epsilon began 2012 and is continuing to grow. The deployment of the Axiata International Hub was a major milestone for the two companies and Axiata’s subsidiaries will continue to migrate to its international hub.

It also gives Axiata a vital building block for adding new services and developing its service offering in the long term. The ePoP solution allows it to introduce legacy to next-generation network migration services, IPX Transit services (eINX) as well as other intelligent network services.

As Axiata’s operation grows, Epsilon will continue to develop its intelligent network services to meet the needs of one Asia’s largest mobile groups.