Asia Express - East Asian ICT
Mobile Communications - SingTel Urges Pan-Asian Carrier Alliance
October 18, 2004
Singapore Telecom, or SingTel, is calling for a number of Asian mobile operators to forge a regional strategic alliance in a move to jointly develop a common mobile telecom platform. Other than TCC (Taiwan Cellular Corp.), which reportedly agreed to join the alliance, Optus of Australia, AIS (Advanced Info Service) of Thailand, Bharti Group of India, Globe Telecom of the Philippines and Telkomsel of Indonesia have also shown interest.

Among the participants, SingTel has total ownership of Optus and a 20% to 40% interest in some of the other carriers. TCC, the only Taiwanese operator approached, is likely to invest approximately NT$100 million (US$3 million; US$1=NT$33.9) into the project. Sing Tel is also setting sights on inviting major players in China, Hong Kong, Korea, and Japan.

The driving force behind Singapore Telecom's proposal is prospects of a more unified network in Asia that can rival with similar alliances in the US and European markets. Due to its later entry into the mobile communications development, Asia has not seen any significant alliance of mobile operators up to now.

To seek closer partnership, Singapore Telecom has suggested setting up a joint venture by participating carriers. The new organization is expected to provide preferential roaming services to subscribers of alliance members, before developing a common platform to jointly procure handsets.