Telstra buys video integrator iVision

Telstra has acquired unified communications systems integrator iVision in a bid for dominance in the Australian video conferencing market.

The acquisition was a “key strategic imperative” for Telstra, its CEO David Thodey said, highlighting “explosive growth in video across IP networks” during the past three years.

Thodey hoped to combine Telstra’s Next IP network with iVision’s “design, deployment and advanced monitoring capabilities” to address enterprise demand for internal and external video communications.

He described high-definition video conferencing, unified communications and collaboration as some of the “fastest growing solutions adopted by enterprise, government and small business customers”.

Last November, analyst firm Frost & Sullivan valued the 2009 video communications market at $52.6 million, representing 3.5 percent growth from the previous year.

Analysts named Telstra, Optus-Alphawest and Dimension Data as major Australian channel partners. Vendors Polycom and Tandberg accounted for nearly 80 percent of the market, the firm reported.

Telstra announced today that the purchase of iVision would make it the “number one provider of video conferencing services in Australia, and one of the top three providers in Asia”.

iVision managing director and owner Graham Williams said the acquisition was a “fantastic opportunity” for the company, customers and staff.

“I look forward to becoming a part of the Telstra team and delivering even greater value to our current and future customers,” said Williams, who was expected to continue to lead the iVision business.

“The combination of iVision and Telstra will create an innovative, network-based, end to end video conferencing provider with customer centric capabilities unparalleled in the Australian market.”

No financial terms were disclosed.