Singapore Telecom to Bid for 3G Cellular License in Hong Kong
quote.bloomberg.com
By Linus Chua
Singapore, Sept. 11 (Bloomberg) -- Singapore Telecommunications Ltd., Southeast Asia's biggest phone company, said it plans to bid in Hong Kong for a 3G cellular license which will enable high-speed Internet access on mobile phones.
``We are always on the lookout for investment opportunities and 3G is one of them,'' said Lim Seng Jin, a spokesman for Singapore Telecom or SingTel. ``If it makes commercial sense, we're interested in bidding for a license in Hong Kong.''
The company may team up with Hong Kong companies to make an offer but declined to name them. SingTel, which has $3.5 billion in cash, has been eyeing other Asian markets to broaden its revenue base after losing its monopoly at home in April.
In Hong Kong, SingTel is in talks to buy half of New World Telephone, the Hong Kong fixed phone line operator that's 88 percent owned by real estate developer New World Development Co. Hong Kong billionaire Li Ka-shing, who controls Hutchison Whampoa Ltd. -- the biggest Asian investor in European phone companies -- said two weeks ago he may consider buying a stake in SingTel.
Hong Kong's Office of the Telecommunications Authority said in March it's inviting industry views on licensing of 3G mobile services. It may invite bids for between four to six operators for 3G services at the end of the year. The services, slated to start in Hong Kong next year, will enable quicker transfer for large files and offer online benefits such as video streaming.
SingTel, which proposes to offer cellular services in Singapore, Hong Kong and Korea in a $1 billion venture with U.K.'s Virgin Group Ltd., won't bid for the license with Virgin.
SingTel failed in a bid six months ago to merge with Cable & Wireless HKT Ltd., Hong Kong's dominant phone company. HKT was bought by Pacific Century CyberWorks Ltd., Asia's No. 2 Internet investment company controlled by Richard Li, Li Ka-shing's younger son. |
