Just for context, all this time, with its market-leading share, Singtel presumably got to sit out of any consolidation. Yet, dynamics might have changed. Yuen maintains that the field here is too crowded and “definitely not sustainable”, and that Singtel has “always been actively” seeking to be part of the consolidation so that the original incumbent can help “lift the industry together” and commit more investments to come up with innovations and better services.
For the last couple of years, the local telecommunications industry has been under strain from intensive competition, pulling down margins as incumbents were forced to match challengers in offering low-price packages. Things were thought to have finally moved along with Keppel selling its subsidiary M1 to Simba, when the original suitor was long assumed to be StarHub.
Instead of giving the go-ahead following a lengthy review of this deal, the industry regulator on May 18 scuppered this transaction by alleging that Simba, owned by Australian-listed Tuas, had flouted local telecommunications laws by using spectrum it was not supposed to.
Just as all eyes have turned to StarHub to see if it will finally get to acquire M1, given that there are hardly any other suitors, market leader Singtel is stealing the limelight by indicating it might be keen as well. “If we are able to participate in the market consolidation, we will definitely consider,” says CEO Yuen Kuan Moon at Singtel’s full year results briefing on May 21.
