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To: Anthony Wong who wrote (5022)	9/21/1999 12:52:00 PM
From: Anthony Wong	Respond to of 11568

MCI to Set Up Internet Service Provider in Singapore (Update2) Bloomberg News September 21, 1999, 9:09 a.m. ET MCI to Set Up Internet Service Provider in Singapore (Update2) (Rewrites and adds rivals' comments in last four graphs.) Singapore, Sept. 21 (Bloomberg) -- MCI WorldCom Inc., the No. 2 long distance phone company in the U.S., said it won a license from the Singapore government to be the island's fifth Internet service provider. The licensing comes just a week after Singapore's telecommunications regulator lifted a 49 percent foreign ownership restriction for providers. MCI WorldCom's entry could stir more competition in the island's Internet market, now controlled by Singapore-based government-linked companies such as Singapore Telecommunications Ltd. and StarHub Pte. MCI WorldCom will be the first foreign Internet service provider in Singapore. ''The services will be competitively priced,'' said Marc Sheldon, Asia-Pacific managing director of UUNET Technologies Inc., MCI WorldCom's Internet unit. He added that the company wanted ''to be No. 2 (after Singapore Telecom) after two to three years.'' MCI WorldCom will focus on the corporate market, Sheldon said, and has 10 to 15 multinational companies waiting to sign up. It'll also wholesale Internet services to other providers. He expects an equal split on sales and profit between its provider services and Internet exchange services, adding that he expects the Singapore operations to be profitable in two to three years. Southeast Asia Foray MCI WorldCom was licensed in July to offer Internet exchange services and provide Internet connections outside of Singapore. The Clinton, Mississippi-based company's plans for Singapore are part of a wider push into Southeast Asia. Singapore will be the base from which it plans to expand into countries including Malaysia, Thailand, Indonesia and the Philippines, Sheldon said. It's also eyeing markets such as Korea, Taiwan, China and India. MCI WorldCom also sells Internet exchange services and operates as an Internet service provider in Australia, New Zealand, Hong Kong and Japan. At least one operator says it's ready to take on foreign rivals. ''We believe that our strong understanding of the local market as well as the strategic partnerships we have entered into will give us an edge in winning customers over and gaining customer loyalty in the long run,'' said Tan Tong Hai, general manager at CyberWay, the Internet unit of StarHub. Others, too, are unfazed. Singapore Telecom said it's beefing up its own Internet infrastructure, raising capacity for traffic to the U.S. by 50 percent in the next two months, and capacity to Europe by 20 fold with a new cable network. ''The entrance of new players in the Internet service provider market will add momentum to SingTel's efforts to remain a leading ISP in Asia,'' spokesman Ivan Tan said. quote.bloomberg.com