Singapore joins 3G targets list for CyberWorks

date: 30th January 2001, source: scmp.com

Pacific Century CyberWorks will bid for a third-generation (3G) mobile-telephone network licence in Hong Kong and also consider bidding for another in Singapore, according to chairman Richard Li Tzar-kai.

The company, which is about to sell a 60 per cent stake in its mobile arm CSL to Telstra of Australia, is the only mobile operator keen to bid for a 3G licence in Singapore.

After the World Economic Forum in Davos, Switzerland, Mr Li told AFX: "We will be competing in the 3G auction in Hong Kong. Singapore is such an important market for the region that we cannot afford not to consider bidding for a licence there."

CyberWorks inherited a 15 per cent stake in MobilOne, Singapore's second-largest mobile operator, from former Cable & Wireless HKT.

It is looking to buy a 15 per cent stake from its shareholder Cable & Wireless.

The Singapore Government plans to award four 3G licences at a minimum bid of S$150 million (about HK$668.5 million).

In Hong Kong, the Government is still contemplating the details of the 3G auction. They are expected to be available next month.

With the change in telecom valuations, operators' sentiment towards 3G investment has been greatly affected. In November, Sunday Communications, for example, showed an interest in bidding for licences, but is now much more circumspect.

"It is not likely Sunday [will] bid for a 3G licence under the current terms and conditions in Singapore," Craig Ehrlich, managing director of Sunday, said. "The worldwide perception [of] 3G had changed so much that it might not make sense if we press ahead."

Hutchison Whampoa earlier said that the group was not likely to be involved in the Singapore 3G auction, even though it earlier bought a stake in a Thailand cellular operation and is looking to buy a stake in Telekom Malaysia's cellular unit.

SmarTone Telecommunications, New World Telephone and Peoples Phones have not disclosed any interest in the Singapore mobile market.

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