Singapore Telecommunications Limited (SingTel) is conducting a strategic review of its Optus Satellite business to optimize value for its shareholders. SingTel said it has appointed Credit Suisse and Morgan Stanley as financial advisors to assist with the review.
Industry officials attending the Satellite 2013 conference in Washington DC last week speculated that APT Satellite of Hong Kong, partly owned by ChinaSat, and Eutelsat of Paris could both be potential bidders for the Optus assets if they are bidded out.
Optus reported revenue of 319 million Australian dollars ($330 million) for the year ending March 31, 2012.
SingTel Optus Pty Ltd is Australia’s second largest telco delivering cutting-edge communications, information technology and entertainment services. In 2001 SingTel became the parent company of Optus, paving the way for the company to become a strong and strategic telecommunications player within the Asia-Pacific region.
SingTel Optus is compelled to review its satellite business in view of the rollout of the Australian government’s National Broadband Network (NBN) project. The NBN will provide high-speed broadband access to all Australian homes and businesses through a mix of three technologies: optic fibre, fixed wireless and next-generation satellite.
The network is estimated to cost A$35.9 billion (US$37.53 billion) to construct over a 10-year period, including an Australian Government investment of A$27.5 billion (US$28.74 billion). Construction of the network began with a trial rollout in Tasmania in July 2010.
The NBN Co., the government-owned corporation, is scheduled to launch two satellites for the project. Early this month, NBN announced it has contracted Arianespace to launch two satellites for US$300 million. Once launched, NBN Co’s two next generation satellites promise to deliver fast, reliable and affordable broadband speeds of 25 megabits per second (Mbps) download and 5 Mbps upload.
SingTel Optus currently operates five geosynchronous communications satellites -- Optus B3, Optus C1, Optus D1, Optus D2, Optus D3 -- delivering services in Australia and New Zealand, such as subscription-TV, free-to-air TV, radio, Internet, voice, and data services. In addition, Australia will have another dedicated satellite with the planned launch of Optus 10 this year.
SingTel said Optus’ broadcast customers include the Australian Broadcasting Corp., Foxtel, GlobeCast Australia, SBS, Southern Cross, WIN, GWN7, NBN Co., New South Wales Department of Education and Communities, Department of Defence and Air Services Australia.
SingTel promised to make an appropriate announcement in the event of any material development arising from the review.
