SingTel announces corporate shake-up; acquires mobile advertising firm Amobee

5 Mar 2012

Southeast Asia’s largest telecoms company by subscribers and revenue, Singapore Telecommunications Ltd (SingTel), has announced a major restructuring to increase its presence in the content and mobile applications segments. As part of this plan the group says it is buying US mobile advertising solutions firm Amobee Inc for USD321 million, to help leverage the Singapore-based operator’s subscriber base across the region. The changes, which take effect from 1 April, mark the first major restructuring it has embarked on in a decade. At that time SingTel launched a drive to acquire stakes in mobile operators in fast-growing Asian markets such as India, Indonesia and Pakistan to boost flagging earnings in its core markets.

Under the restructuring plan, SingTel’s business organisation will comprise three groups: Consumer, Digital Services, and Information and Communications Technology (ICT). SingTel currently divides its group operations along geographical lines. The move is a reaction to the rising tide of mobile content providers, including Apple Inc, Google and Nokia, which have grabbed revenues from mobile network operators in recent years. SingTel’s group CEO Chua Sock Koong said the firm must learn to compete in a new industry landscape and grab a share of a segment that was not even their core business in the past. ‘Our industry is rapidly changing, customers’ usage behaviour and preferences are evolving in the emergence of new devices, applications and technology,’ she said.

Singapore, Singtel Group