Author: tfwee
SingTel – BT
Will SingTel keep its word on not charging consumers more?
BARELY 60 hours after telco giants StarHub and SingTel braced themselves for battle, it was the latter that had its arm raised as it secured the prized exclusive rights to air English Premier League matches from next August.
Many football fans were caught off-guard by the speedy conclusion of the bidding war as SingTel announced its victory early yesterday morning. Up until then, the possibility of an alliance between the two rivals was still being discussed. Fans were also busy weighing their options should one or the other, or even both, win the bid to screen ‘live’ games from the world’s most popular football league for the next three seasons.
As the dust settles, to say that many are finding themselves in a tricky spot is an understatement. Signing up with both telcos would be the most ideal as it would give the complete package of all the different sports and other channels as well, but at what cost to the wallet?
Bear this in mind, though: SingTel also surprisingly announced that it had bagged the ESPN Star Sports channels, which include other key offerings such as the FA Cup, Formula One, the Australian Open, Wimbledon and the US Open Golf Championship.
The message from SingTel is clear: From next year, everyone who wants to watch the vast majority of sports will have to sign up for mioTV.
Perhaps crucially, SingTel chief executive Allan Lew promised in a statement yesterday that consumers would not be charged ‘more than what they are currently paying to their cable TV operator’, while still enjoying the convenience of SingTel’s integrated mobile, Internet and mioTV platform.
But there are many other factors to consider before one chooses to jump ship. First, there is the group who has only just signed a fresh two-year contract with StarHub primarily because of the sports channels. They now face the prospect of being football-less next year unless they sign up with SingTel too, as they are unable to break their StarHub contract due to hefty penalties.
There is another catch. Those who want to subscribe to mioTV must have a SingTel fixed line installed in their home. This would be a problem for those who have terminated their lines in recent years, preferring to use their mobile phones to communicate instead. Subscribing to a fresh fixed line for the sake of mioTV would mean paying extra for installation and monthly charges.
While SingTel claims that it has 95 per cent of residential areas covered already, it has to work faster in wiring up the rest of the country – including pubs and coffeeshops and other nightspots – to win over as many customers as possible.
Currently, the estate where I live in in the West is not mioTV-ready yet, which means I can’t even enjoy the Champions League this season. The only way to catch the games is on my computer via SingTel’s Football Frenzy offering, which would cost $156 a year.
Netizens, meanwhile, are all abuzz at the revelation that they might have to subscribe to both pay-TV operators. Forgoing StarHub would mean not being able to watch news channels such as BBC or CNN, entertainment stations such as Star World or AXN and premium movie channels such as HBO.
Clearly, SingTel is now putting all its eggs in one basket and banking on sports to win over a still-sceptical public. All eyes will now be on whether it remains true to its word that consumers won’t have to pay more to watch sports than what they are currently forking out now.
SingTel – BT
Bharti-MTN merger talks collapse again
Indian telco blames SouthAfrica for latest breakdown; MTN shares slide
Talks between Bharti Airtel and MTN Group to create the world’s third-largest mobile operator collapsed for the second time in just over a year yesterday.
Singapore telco SingTel has a stake of about 30.4 per cent in Bharti, India’s largest mobile operator. Bharti blamed the South African government for the latest breakdown in a deal that faced close scrutiny from regulators and politicians.
South Africa was eager to retain MTN’s national character and had approached the Indian authorities to consider a dual-listed entity, a structure Indian law does not allow.
‘We hope the South African government will review its position in the future and allow both companies an opportunity to re-engage,’ Bharti said, adding that it would continue to explore international expansion opportunities.
Shares in MTN, Africa’s biggest mobile operator by subscribers with a market value of about US$31 billion, fell as much as 3.5 per cent to 119 rand after the news.
Ahead of the news, shares in Bharti closed 0.1 per cent lower in a market that rose 1.6 per cent.
Bharti and MTN revived talks in May, a year after previous negotiations broke down over who would control the resulting emerging-markets giant with more than 200 million customers across India, Africa and the Middle East.
Under the initial terms outlined in May, MTN and its shareholders would take a 36 per cent economic interest in Bharti, which would end up with 49 per cent of MTN.
The deal would have given both exposure to new markets ripe for growth, while a full merger, the eventual aim of the talks, would yield cost savings, allow for technology sharing, and provide financial muscle for more expansion, analysts say.
A combined entity would have been the third-biggest mobile operator based on subscribers, behind China Mobile and Vodafone.
The exclusive talks over the deal were initially due to end on July 31 but were extended twice earlier.
Bharti had increased the cash component of its offer for a 49 per cent stake in MTN to US$10 billion from a proposed US$7.6 billion, two people familiar with the matter had said.
On top of that, the Indian firm was paying US$4 billion in stock for a total package of US$14 billion, 7 per cent more than an estimated US$13 billion proposed initially.
India’s capital markets regulator last week altered the country’s takeover rules, requiring a company that acquired 15 per cent of an Indian firm through American depositary receipts or Global Depositary Receipts (GDRs) with voting rights to make a mandatory offer for a further 20 per cent.
Under the new rules, MTN might be required to make an offer for an additional 20 per cent stake in Bharti, if it is issued GDRs with voting rights.
Standard Chartered and Barclays were advising Bharti Airtel, while Bank of America Merrill Lynch and Deutsche Bank were advising MTN. — Reuters
SingTel, StarHub – CNA
SingTel wins rights to BPL, ESPN STAR Sports
Singapore Telecommunications Ltd (SingTel) announced it has won the rights to air Barclays Premier League (BPL) matches across its platforms, as well as exclusive broadcast rights to ESPN STAR Sports for mio TV.
In a statement released Thursday, SingTel said the rights would allow it to broadcast BPL matches on mio TV, the Internet and mobile applications for three years starting August 2010.
SingTel said it has also secured rights to a suite of sports networks and services from ESPN STAR Sports (ESS) for its mio TV customers. ESPNEWS, a brand new 24-hours sports news channel, is slated to be broadcast on mio TV from next month.
SingTel, StarHub – BT
Are SingTel, StarHub teaming up for EPL bid?
Both kept mum whether their bids are solo or joint
Singapore Telecommunications and StarHub have both tossed their hats into the ring for the English Premier League (EPL) broadcast rights. But the silence surrounding the nature of their bids could mean that the bitter rivals could turn from foes to allies this time around.
The two companies yesterday confirmed that they have submitted bids for the next three seasons of the EPL, the crown jewel in StarHub’s sports programming line-up. However, both telcos kept mum when asked if they were going solo or opting for a joint assault.
Their silence adds to recent speculation that the rivals could launch a joint EPL bid to reduce the heavy price that has to be paid for the world’s most-watched soccer league from 2010 to 2013.
Besides the two telcos, ESPN Star Sports is also expected to be involved in this contest.
StarHub forked out an estimated $250 million in 2007 for its three-year EPL screening rights, a four-fold increase from what it previously paid.
With its growing popularity, market watchers expect EPL rights to soar even higher, prompting concerns that the sky-high costs could eventually be passed on to consumers.
Investment research firm CIMB pegged the figure at $400 million, nearly six times higher than the price ESPN Star Sports paid for the 2004 to 2006 campaign.
To cap escalating content costs, Deutsche Bank’s research arm subsequently said that a joint bid between SingTel and StarHub was becoming ‘increasingly likely’.
The Programme Advisory Committee for English Programmes – a body appointed by the Minister for Information, Communication and the Arts in 2007 to give feedback on English broadcast programming – also urged the two pay-TV operators to join hands in the interest of local viewers.
Fanning the speculation even further, officials from the Football Association Premier League have also clarified that they have always allowed joint bids from Singapore.
In the United Kingdom, the broadcast rights are typically in the hands of a few players. For example, ESPN currently owns two of the six EPL groups while Sky Sports has a claim on the remaining four.
However, Kim Eng research analyst Gregory Yap believes that a dream partnership between SingTel and StarHub is an unlikely outcome.
‘. . . SingTel and StarHub are fiercely-competitive and are unlikely to agree,’ he said in a client note on Monday.
‘If anything, SingTel is more likely to bid aggressively even if it does not win just to spoil the show for StarHub,’ Mr Yap added.
This would mirror the scenario in 2007, where SingTel went head-to-head with StarHub and ESPN Star Sports.
Singapore’s largest operator was then hoping to score a star attraction ahead of the launch of its Mio TV service.
STEng – BT
ST Engg wins 59m yuan MRT systems contract in China
ST Electronics has won a 58.8 million yuan (S$12.2 million) contract to provide electronic systems to Changchun Rolling Stock Company.
The electronics arm of listed ST Engineering said the passenger information systems (PIS) and security monitoring systems are for Changchun Rolling Stock’s project in the Saudi Mashaaer Mass Rapid Transit Line in Saudi Arabia, and there is also a PIS for an MRT line in China.
The contract starts immediately and work will be completed by the second half of 2010, ST Engg said. It is not expected to have any material impact on net tangible assets per share and earnings per share for the current financial year.
ST Engg said the new contract brings the total value of PIS projects in China to over 100 million yuan. The company has been awarded more than 10 rail projects in China to date.
The PIS system will be installed in 17 trains with each train comprising 12 cars. To enhance subway service levels, the system provides information to passengers including real-time train location and schedules, announcements of important messages and other multimedia information. Under the contract, ST Electronics will provide system design, supply equipment and software, install, test and commission the systems.
‘This latest contract further strengthens our track record in China for MRT systems,’ said Lee Fook Sun, president of ST Electronics.
ST Engg closed at $2.72 yesterday, up 3 cents.