The purchase would give StarHub access to Singapore's cable monopoly with its existing residential cable network, which can carry video, voice and large amounts of data services. Though the government compensated StarHub for having accelerating the liberalization of the telecommunications industry, StarHub is still required to roll out an island-wide telecom network.
SCV's largest shareholder, state-owned Media Corp of Singapore, has confirmed that the cable company is on the market. "Discussions are ongoing whether we should sell," said Cheng Wai Keung, MediaCorp's chairman.
MediaCorp, which owns 41.3 percent of SCV, is also planning to sell shares publicly by the end of the year.
Separately, the purchase may face obstacles, the paper said. StarHub shareholder Singapore Power Ltd may be selling its 25.5 percent stake, while foreign shareholders British Telecom and Japan's Nippon Telegraph and Telephone Corp may not be interested in SCV. Singapore Press Holdings Ltd and Singapore Technologies Telemedia are SCV's other shareholders.
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