StarHub And SCV In Discussion On Possibility Of Merger
Singapore, 30 April 2001 - StarHub and SCV today announced that the two companies are in talks to explore the possibility of a merger.
If the merger were to be completed, StarHub’s fixed-line, wireless, long-distance and Internet service business units will be combined with SCV's cable TV and residential broadband Internet access businesses. Companies and consumers will be able to access a wider range of services with greater convenience compared to that made available from the two companies separately today.
"The synergies are obvious. SCV has a state-of-the-art nationwide broadband network that reaches all homes in Singapore. StarHub has invested significantly in cabling the commercial areas for broadband services and has built a GSM mobile network. In addition, StarHub’s Mobile division has recently been awarded a Third Generation (3G) license in Singapore. Both SCV and StarHub have a significant customer base in their respective areas of business, and the footprints of StarHub’s and SCV’s fixed networks complement each other very well," said Terry Clontz, President and CEO of StarHub.
"This merger has the potential to establish a world-class communications powerhouse that offers a compelling integrated range of telecommunications and broadband interactive services in a cost-efficient manner, for the benefit and convenience of customers in homes and offices alike," said Yong Lum Sung, SCV’s President and CEO.
In September 1999, SCV completed its extensive state-of-the-art broadband network that reaches practically all Singapore homes, well ahead of schedule. The company has more than 265,000 customers on its cable TV service, SCV MaxTV, whilst its new broadband access service, SCV MaxOnline, is now the leading broadband access service in Singapore, with more than 50,000 subscribers connected just 15 months after its launch.
Together with the Facilities Based Operator (FBO) licence awarded on 1 April 2000, SCV was also designated a Public Telecommunications Licensee (PTL) by the Info-communication Development Authority (iDA). This was a clear endorsement of the strategic importance of its broadband network and paves the way for voice telephony services to be offered in the near future.
Since its launch in April last year, StarHub, Singapore’s second full-fledged info-communications company, has been making significant inroads in both the consumer and business markets. In its first seven months of commercial operations, StarHub showed an impressive track record achieving its initial first year target of 200,000 mobile customers five months earlier than anticipated. StarHub subsequently revised this target to 300,000, and at the end of February 2001, the company reached this milestone one-month before its first anniversary.
At the end of December 2000, other milestones achieved by StarHub include; 8% market share for its international call services (IDD 008 & I-Call 018); 265,000 internet-dial up subscribers and more than 700 business accounts secured through its Internet arm, StarHub Internet.
Merger negotiations are still underway. Until a formal merger agreement is reached, the final shareholding structure cannot be confirmed.
The possible merger between StarHub and SCV is subject to approval from regulatory authorities.
More details will be announced to the public in due course.
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*figures as of end Apr 2001
Jointly issued by StarHub Pte Ltd and Singapore Cable Vision Ltd.