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Thursday, June 30, 2005

Singapore Telecommunications (SingTel) - on to further expansion

Whatever I think of this company, I have to admire them in the style they are driving their business. It is a lot about execution, and getting the deal done, that I see here. It is not about whining about missed chances.

Okay, they didn't win the entry into Pakistan's telecommunication sector which was eclipsed by United ArabEmirates' Etisalat. Who cares? While they lost that bid, they moved on and are on the edge to shake up Bangladesh's market. It is said that their entry is a sign of upcoming price wars. They want to win.

SingTel also want to play a bigger role in the Thailand market, as underlined by their bid to buy 25% of TOT Corp Plc as part of a possible strategic partnership.

Last year, they made the entry into the fast growing Indian market as they purchased a third of India's top listed mobile phone company, Bharti Tele-Ventures.

Besides those moves, they have stakes in Optus, 21.46 percent in Thailand's Advanced Info Service Plc., 44.63 percent of the Philippines' Globe Telecom Inc. and 35 percent of Indonesia's PT Telkomsel. They are also active in Malaysia.

Sure, all those acquisitions cost money and as such, it is no wonder that net profits fall by close to a third with underlying profit actually rising by 22 percent . Still their gets 7 percent pay rise and it is my opinion that he deserved it.

(By Asia Business Consulting)