Wednesday, October 29, 2008

Singapore Telecommunications - Losing its Competitiveness?

In Today's paper ( which was yesterdays actually on 28 October 2008), there was a small column in the business section that wrote:
Quote:Terria, a consortium bidding to build a part government-funded broadband network in Australia,yesterday lost another partner. Australian Capital Territory-based Internet provider., TransACT, has withdrawn its support for the group, which is led by Singapore Telecommunications' Australian Optus.

Terria chairman Michael Egan said in a statement that the group still plans to bid for A$4.7billion in federal government funding to build a high-speed Internet network reaching 98 percent of Australian homes. The news is another blow to Terria, which is vying with Australia's biggest Telecommunications company, Telstra Corp, to build the network.

Another group member, TPG-Soul, withdrew its support on Friday, while Telecom Corp of New Zealand Australian arm,AAPT, pulled out of the consortium due to financial concerns earlier this month. Terria has also said recently that it is considering alternative funding options given the turmoil in global financial markets, which is crimping firm's ability to raise capital for projects. The government has called tenders by Nov 26.DOW JONES Unquote

So let us's safe to assume( or infer or deduce) that Terria is more likely not to get the contract. Optus's revenue pie is about 3.5 times of Singtel business in Singapore. ( thats a lot!) Singtel group's data and internet portion of their revenue is about 20+% and thats a large chuck of the groups revenue. It's interesting to see how Singtel will manage to grow its revenue in Australia. Go downunder...mate!

(We got to admit we are not IT Gurus so we are assuming Data and Internet is related to the above high speed internet network? No? Pls Shoot us down, slander us, demean and insult us if we are wrong...we are rock bottom shameless already).

Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team


  1. thanks for all the great posts. was wondering if you guys can cover some basic dcf methods, like how to give a target px for the company. right now, the discussions are all on the balance sheet, and mainly on margins,current ratio, debt ratios, cash cycle etc. something different will be good

  2. Ok will look into DCF methods dude or duddette if you are a hot babe!


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