SG DAILY: Asian Banker Interactive
Analysis

24 April, 2000

Liberalisation of Singapore's Telecommunications Industry to Result
in Proliferation of e-Banking Services.

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M1, SingTel, StarHub will be teaming up with banks and brokerages to offer e-financial services in the wake of telecommunications industry liberalisation in Singapore. International telco players are expected to enter the fray. The following is drawn from the main article of the Asian eBanker.
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On 1 March, Overseas Union Bank (OUB) launched its wireless Internet
banking service OUB MobileNet. Not dependent on any telecommunications
carrier, OUB's Wireless Application Protocol (WAP) Gateway allows
customers with any WAP-enabled mobile phones and palmtops to access the
bank's Internet banking services such as information on deposit rates,
conduct balance inquiry, funds transfer and bill payment. This was the
first of many WAP initiatives that would soon proliferate the financial
services sector in the country.

Telecommunications company M1 and Phillip Securities have also announced that they would team up to jointly deliver a range of WAP-based financial services for M1 customers. Under the agreement, Phillip's current Internet and mobile trading service POEMS will be converted to allow customers to transact via their mobile phones.

SingTel, another major player in the local telecommunications market, has also teamed up with Ong & Co., a local brokerage, to launch their own WAP service iROAM. On 15 March, industry newcomer StarHub announced that it would be awarding its WAP tender to Siemens Information and Communication Networks.

The government realised that to keep up with the pace at which the financial industry is changing in relation to the advent of e-commerce, competitiveness in the telecommunications and info-communications arena is a must. On 21 January, the Singapore Government announced its intention to introduce full telecommunications market liberalisation. Originally slated on 1 April 2002, the Government's decision to introduce full market competition was brought forward to 1 April 2000. This move, together with the abolition of the foreign equity limit in telecommunication companies, aims to push Singapore ahead in the current e-commerce race in Asia.

On 29 March 2000, the Info-Communications Development Authority of Singapore (IDA released five new facility-based and 24 new service-based individual licences. The IDA is the new info-communications regulatory entity resulting from a merger of the Telecommunication Authority of Singapore and the National Computer Board, It also awarded 8 licences to existing telecom service providers to allow them to expand their scope of operations and services. Foreign players are now allowed to partake freely in Singapore's telecommunications industry. They have the choice on the types of networks, systems and facilities they wish to build and offer. These refer mainly to public basic telecommunication services (PBTS) such as local calls, IDD calls, mobile telephony, paging and leased circuits.

This liberalisation will see large telco players targeting the small population that is already serviced by three local carriers. Such a scenario of greater supply than demand will see the prices of telecommunication services being reduced, with competition being centered on customer service and products. It will also encourage greater co-operation between the telecommunications, banking and technology sectors to work together to explore additional distribution channels. Some new joint initiatives we can expect include online bill presentmentand payment, cross-channel delivery of banking services and WAP-enabled portal sites.

Currently, WAP has been making its appearance in other industries as well. MPH Bookstore has announced that customers will be able to purchase its books and services online using WAP-enabled mobile phones by May. Local auction company Allegro Auction has also entered into the mobile commerce fray, allowing users to bid and sell products using their handphones. Shipping company APL Co. in Singapore has also launched a new service which enables customers to access global information on their shipments using WAP-enabled handheld devices.

Three key factors will ensure the acceptance of WAP: Widespreadacceptance and usage of the Internet, the need of customers to be mobile, and greater bandwidth.

The Star : Friday, May 5, 2000

SingTel buys 31% stake in Thai ISP

SINGAPORE: Singapore Telecommunications Ltd (SingTel) is to pay US$23mil for a 31% stake in Point Asia Dot Com (Thailand) Ltd, the parent company of Thailand's leading Internet service provider (ISP).

The investment is SingTel's first major acquisition under its regional Internet and ISP strategy, according to Singapore's Business Times. And more are to come.

Leong Shin Loong, SingTel's chief executive officer (multimedia), was quoted as saying that future acquisitions could either be made by the company itself or through Point Asia Dot Com, a majority-owned subsidiary of Loxley Business Information Technology Co Ltd, which in turn is a wholly-owned unit of listed Loxley plc.

"This investment in Point Asia is yet another step in SingTel's drive to become the first truly pan-Asian info-communications company with a reach unmatched by any other operator in the Asia-Pacific,'' he said.

Leong said SingTel's Internet strategy was to build a pan-Asian Net-telco platform through partnerships with other operators that would enable SingTel to offer business customers a full suite of regional telecoms, data communications, Internet and e-commerce solution.

SingTel's entry continues a trend of Singapore firms buying into Thai Net firms, beginning with the tie-up between Singapore Technologies Telemedia and the Nation Multimedia Group in February to launch their first e-commerce venture there.