SingTel concerned to buy out mobile phone rival

SingTel concerned to buy out mobile phone rival

SINGAPORE (AP): Singapore Telecommunications is interested in buying out its mobile phone competitor MobileOne, a SingTel spokesman said Saturday.

MobileOne, or M1, became SingTel's first competitor in 1997, ending SingTel's long-time telecoms monopoly in the affluent city state.

Singapore's government owns 78 percent of SingTel, but has recently said it will consider reducing its stake.

SingTel is interested in bidding for M1 "if the regulator allows," SingTel spokesman Ivan Tan said. He was referring to the Infocomm Development Authority, which regulates Singapore's telecoms industry.

In a statement Saturday, the authority said it would closely evaluate any telecom company's application to change its shareholding structure "to ensure that any change will not unreasonably restrict competition."

M1 shareholders announced Wednesday that were holding talks which could lead to their stakes being put up for sale.

SingTel would end up with nearly 90 percent of Singapore's 2.6 million mobile phone users if it were to take over M1, the Business Times newspaper reported Saturday.

M1 has a 31 percent share of Singapore's mobile phone market, while SingTel has a 58 percent share, the newspaper said, adding that the country's third mobile phone player, StarHub, has about 11 percent.

If SingTel is allowed to enter the bidding, it will likely be up against Regional Wireless, a 60-40 joint venture between Australia's Telstra Corp. (ALS) and Hong Kong's Pacific Century CyberWorks Ltd. (PCW) The company Friday expressed interest in bidding for M1.

SingTel has recently been aggressively expanding its operations in attempt to become a major telecoms player in the Asia-Pacific region.

The company recently won a bidding battle against two competitors to purchase Cable & Wireless Optus (A.CWO), Australia's second biggest phone company. If the deal goes through, it would be one of the biggest corporate deals in Australian history and the largest-ever overseas investment by a Singapore company.

SingTel has recently taken stakes in telecoms firms in several Asian countries including Thailand, India and the Philippines.