S'pore Telecom unveils sweeping tariff cuts
S'pore Telecom unveils sweeping tariff cuts
SINGAPORE (AFP): Singapore Telecommunications Ltd. yesterday
announced sweeping tariff cuts in international direct-dial (IDD)
calls to sharpen the city-state's edge as a regional business
hub.
The tariff cuts would cause Singapore Telecom to give up S$108
million (US$77.14 million) in revenue over the next 12 months.
Singapore Telecom said it would reduce IDD rates to Britain,
Indonesia, Japan, Taiwan, the United States and 94 other
destinations by up to 46 percent from January.
Collect-call charges from 32 countries will also be lowered by
up to 42 percent, said the company, the biggest corporation in
Asia outside of Japan.
Rates for subscriber trunk dialing (STD) calls to Malaysia
were also reduced by up to 43 percent, or 76 cents per minute.
It is the fourth round of tariff cuts announced this year.
IDD rates were reduced in January, April and September. In
September, Singapore Telecom reduced IDD rates by up to 42
percent and collect-call charges by up to 74 percent.
"This round of rate reductions will make our IDD rates even
more competitive compared to incoming calls from these
countries," said Ng Seng Sum, vice-president of Singapore
Telecom's international telecommunication service.
From January 1, an IDD call from Singapore to Japan will cost
S$1.50 per minute, 56 percent lower than the S$3.41 at current
exchange rate it costs for a similar call from Japan to
Singapore.
"It will be a big boost for companies who are operating in
Singapore and especially for those who have businesses in the
region as our IDD rates to major destinations in Asia such as
Japan and the Philippines, which are already very competitive,
have been reduced once again," Ng said.
"In total, we will be passing back to customers savings of
more than S$108 million over the next 12 months as a result of
IDD and STD rate revisions," he added.
Singapore Telecom is preparing to face competition in basic
phone services from 2000, when one or two more licensed operators
will enter the market under government plans to free up the
telecoms sector.
Its monopoly over the lucrative mobile-phone and paging
services runs out in next April.