Charles Reed: All part of a big idea.

What's the thinking behind the acquisition of MagiNet? Was it growth for growth's sake or is there a big idea behind it?

The acquisition of MagiNet is part of interTouch’s vision to expand its global presence as the premier provider of managed technology network services to the global hospitality industry. This acquisition expands interTouch’s reach to over 1,000 hotels in 56 countries, making us the largest technology provider to the hospitality industry in Asia Pacific, and among the top four in the world.
This expansion of scale also increases interTouch’s resources, expertise and R&D know-how to implement a broad suite of innovative integrated solutions, in order to support the needs of hotel today and in the future.

The combination of these strengths makes interTouch well-positioned to continue its phenomenal growth and solidify its foothold in the hospitality technology industry.

Some people might call it audacious – a smaller company taking on a bigger brand. What do you call it?

I would call it audaciously strategic.

interTouch has experienced strong growth globally and in Asia Pacific in the past few years. Our revenues grew 36% year-on-year in 2007 and we are set to continue this rapid growth in the coming years. The acquisition of MagiNet is another strategic part of our plan to expand the scale and scope of our business, and further cement interTouch’s position in the industry. The strong support from our parent company NTT DoCoMo helps to fuel our growth.

In 2007, we also expanded into India, North & South America and Africa. We plan to continue this strategic move to break into new markets in support of interTouch’s global partners’ expansions. We will also broaden our suite of technologies and leverage DoCoMo’s R&D expertise to include managed services and multi-media products.

What are you doing to make sure this integration does not lead to indigestion? How are you integrating the businesses, on a strategic and human level?

interTouch has assembled a special integration team dedicated to ensuring a seamless integration of both organisations. So far we have seen very positive results: employees agree that the acquisition benefits both the business and their careers, and are thus very supportive of the integration.

To synergise the capabilities of our expanded talent pool, we plan to organise more events that will forge stronger relationships between team members, and promote best practices and idea-sharing. Employees are also strongly encouraged to communicate actively with their managers, to ensure that all feedback is received and addressed.

What are you doing to soothe frayed nerves of employees who fear for their jobs? Any layoffs expected? If so, how many and where?

We practise open communication within the organisation. Every announcement is clearly and immediately conveyed to interTouch’s employees via conference calls, meetings, emails and Intranet. We also encourage our managers to have one-on-one sessions with their team members, to identify and address any issues.

There will be no layoffs as a result of the acquisition. Every employee at the combined company will continue to be a valued member of our team as interTouch moves forward in this exciting period of company growth.

Other than making it bigger, how will this change interTouch as a business?

The acquisition of MagiNet not only expands interTouch’s scale, but our scope of business well.

With ownership of MagiNet and the support of our parent company NTT DoCoMo, we will have even greater access to resources and talent to develop innovative technologies and expand our product suite to include managed services, multi-media products and even media convergence offerings. This ensures that interTouch can continue to support the needs of hotels today and in the future.

What remains unchanged is interTouch’s vision to be the premier provider of managed technology network services to the global hospitality industry.

How will your hotel customers benefit from this acquisition?

Our hotel partners globally and in Asia Pacific will have access to the best technology solutions available to the hospitality sector. The integration of MagiNet’s capabilities with interTouch’s market-leading technologies will result in optimum technology services for hotels.

For instance, interTouch’s unparalleled 96 percent first-time Internet connection rate, round-the-clock remote network monitoring and a 24-hour toll-free, multilingual helpdesk, will be complemented by MagiNet’s broad suite of technology offerings and multi-media products.

With such a strong technology infrastructure and support, hotel staff can focus on other areas of guest services, and further enhance the hotel’s reputation as a leading choice for business and leisure travellers.

What are the key trends happening in in-room technology? Last year, you talked about bundling and offering some services for free – how has this worked?

• Hardware convergence is still a key trend in in-room technology. More hotels are recognising and want to have a broad range of technologies provided by a one-stop-shop service provider. With the acquisition of MagiNet and expansion of our suite of technologies, interTouch is one step closer to becoming this preferred provider. This also provides us with the economies of scale to help our hotel partners keep their price plans competitive and relevant to consumers’ changing needs.

• Hassle-free technologies remain critical for both business and leisure travellers. Technologies, whether in-room controls and entertainment systems, are becoming increasingly sophisticated and at the same, user-friendly. It is important to ensure that both qualities exist concurrently so that guests do not experience any headaches when using the technology services.

• Guests also increasingly regard wireless Internet as a ‘given’ in hotels. While wired Internet remains the preferred option by guests in Asia Pacific due to security concerns and lifestyle habits, a wireless connection will become more important as hotels compete for the growing influx of travellers coming into the region. Consumers are also more tech-savvy and have fast-changing expectations of technologies. It is now more critical for hotels to provide their guests with easy access and log-in to a wireless connection.

• We work with hotels to develop packaged and bundled services that are tailored to their needs and their guests’ demands. There is no one-size-fits-all solution. Some hotels are happy to provide free wireless Internet, for example, while charging for VoIP and digital video-on-demand, while others prefer to stick to a pay-per-use basis for all services. interTouch has the capabilities to provide bundled services so we work closely with hotels to see what packages and pricing plans work best for them.