SingTel mulls future of Optus satellite unit
- 18 March, 2013 13:00
The Optus Satellite facility. Credit: Stephanie McDonald
SingTel is reviewing its Optus Satellite business “to optimise value for shareholders,” the company said in a statement to the ASX.
The parent company of Optus said it appointed Credit Suisse and Morgan Stanley as financial advisers on the review.
Buddecomm analyst Paul Budde said SingTel may not view the division as essential.
“The only possibly suggestion I have is that satellite is not core to their business, and that with specialised satellite organisation and the upcoming NBN satellite service,” Optus must decide if it “will invest in new satellites to stay competitive,” he said.
Optus is the only telecom company that owns and operates a fleet of satellites in Australia. It operates five satellites, with a sixth scheduled for launch later this year.
Services provided by the Optus satellites include free-to-air and pay TV, mobile telephony and broadband services. Optus Satellite customers include the NBN Co, ABC, Foxtel, SBS and other broadcasters and government organisations.
The unit reported $319 million in revenue for the financial year ending 31 March 2012.
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