Singapore Telecom moves closer to pan-Asian ambition<\/p>\n
SINGAPORE (AFP): Singapore Telecommunications (SingTel) is now
\nwithin striking distance of its goal of becoming a pan-Asian
\ncarrier after securing the vital nod from Australia for its US$8
\nbillion takeover of Cable and Wireless Optus.<\/p>\n
\"SingTel has got all the major approvals that it needs,\"
\nGillem Tulloch, a telecom analyst at Nomura Securities, told AFP.<\/p>\n
\"I would say that as a result of this acquisition, SingTel is
\none step closer to creating a pan-Asian network,\" he said.<\/p>\n
With Optus under its control, SingTel's presence in the Asia-
\nPacific region would cover Australia, India, the Philippines,
\nThailand and Singapore, with a total customer base of more than
\n17 million mobile phone subscribers.<\/p>\n
SingTel holds minority equity stakes in telecom companies in
\nIndia, the Philippines and Thailand.<\/p>\n
\"No other company in Asia offers such diversified exposure. We
\nenvisage SingTel becoming a S$50 billion telecoms giant in terms
\nof assets in the next 5-7 years, providing investors with one of
\nthe most rapid growth (rates) among the large Asian companies,\"
\nSG Securities said in a report.<\/p>\n
Australian Treasurer Peter Costello's approval earlier in the
\nweek of the Optus acquisition gave SingTel an immediate foothold
\nin the lucrative Australian market.<\/p>\n
There had been doubts about the deal amid Australian concerns
\nthat the Singapore government, which owns 78 percent of SingTel,
\nwould be able to access sensitive military information
\ntransmitted by a satellite to be launched jointly by Optus and
\nthe Australian defense forces next year.<\/p>\n
SingTel has allayed fears expressed by the United States, a
\nclose military ally of Australia, and the Australian government
\nhas said it is satisfied with SingTel's undertakings to safeguard
\nthe security of sensitive commercial and military communications
\ntraffic.<\/p>\n
Securing Australia's second largest telecom carrier gives
\nSingTel a 33.3 percent share of the mobile market, placing it
\njust behind market leader Telstra which has 45 percent. The
\nmobile business segment is Optus' biggest revenue earner,
\naccounting for 43 percent of total turnover.<\/p>\n
For SingTel, having Optus means that more than 50 percent of
\nrevenues would now come from outside Singapore where its domestic
\ndominance has been eroding gradually after the entry of new
\nplayers, analysts said.<\/p>\n
\"It's a major milestone for SingTel because as you know
\nSingTel's exposure is still very much a local telecommunications
\ncompany despite the fact that it has been investing overseas,\"
\nYang Sy Jian, head of research at Kay Hian brokerage house, said
\nin a televised interview.<\/p>\n
Anglo-Dutch bank ING Barings called for a buy recommendation
\non SingTel on optimism the carrier is well on its way to become
\nan Asian giant, and on its ability to defend its home turf.<\/p>\n
\"SingTel is ready for liberalization and increased competition
\nin Singapore. It has executed strategies to defend and win back
\nprofitable business in a fully liberalized market,\" the bank
\nsaid.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/singapore-telecom-moves-closer-to-pan-asian-ambition-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}