Singtel set to jump into Pak telecom market

[LahoreEstate]

ISLAMABAD: Singapore Telecommunication is set to jump into Pakistan’s telecom market as talks with Abu Dhabi Group for sale out of more stakes of Waridtel are gearing up.

SingTel already owns 30 percent stakes in Warid Telecom and the agreement between Singapore Telecommunication Company, known as Singtel and Abu Dhabi Group is likely to happen before June 2009.

The decision comes as the company is facing a saturated domestic market while the country comprises only 4.8 million people.

Feeling the heat, SingTel has spent Singapore $18 billion to invest in countries such as India, Indonesia, and in the bigger Australian market. Revenue growth in Singapore is expected to slowdown to single digits in the year to March 2010.

Singtel has expressed its keenness for acquisitions after warning that revenue growth in its home market would slow down, due strong Singapore dollar.

When contacted, a senior official of Warid Telecom said the deal with Singtel was yet to be confirmed, however, if it goes through, this deal would prove to be positive for the company as well as Pakistani telecom industry.

Singtel earlier posted a 17 percent drop in quarterly net profit, which is much smaller than expected. However, the company is yet to elabourate its possible targets or markets where it is eyeing acquisitions. app

http://www.dailytimes.com.pk/default.asp...2009_pg5_3