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Telstra-DataOne JV expects S$200m-S$400m telecom revenues

Summary

Telstra-DataOne expects revenues of S$200 million to S$400 million in two to three years from its full range of telecommunications services on the island, when the market fully liberalizes on Saturday.

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SINGAPORE--Telstra-DataOne expects revenues of S$200 million to S$400 million in two to three years from its full range of telecommunications services on the island, when the market fully liberalizes on Saturday.

The company is also aiming for the No 2 telco spot on the island (after Singapore Telecoms Ltd) and expects to gain 10 to 20 percent telecom market share in two to three years, said Roland Tan, D1 CEO.

Telstra-DataOne is a 50:50 joint venture between Australia's Telstra Corp Ltd and local Internet service provider DataOne (Asia) Pte Ltd (D1). D1 is wholly owned by locally-listed Keppel Telecommunications & Transportation Ltd (Keppel T&T).

The joint venture was unveiled yesterday, when it received a facility-based operator license from the Info-Communications Development Authority to build telecommunications infrastructure here.

The company will offer prepaid International Direct Dial services from April, Tan said.

"Both Telstra and D1 will be pumping about S$5 million each into the new company as initial paid up capital," said Ng Eng Ho, Keppel T&T managing director.

The capital will be used for building international gateways to offer both corporate and retail customers here international voice and data access, he added.

Yesterday, local mobile operator MobileOne (Asia) Pte Ltd (M1) also won a license to provide international, fixed and Internet telephony services to retail customers here. Keppel T&T has a 35 percent stake in M1.

While there might be an overlap of service offerings by Telstra-DataOne and M1 in the retail sector, "we do not see M1 pursuing aggressively the prepaid market," Ng said.

Yesterday, a total of 66 licenses were issued to companies, including MCI WorldCom, AT&T, Concert, Equant, Flag Telecom, Davnet, UUNet, Pacific Internet, Singapore Cable Vision and Hutchison Intrapage.

New entrants can offer a whole range of Internet and telephony services while established players can broaden their telecom service scope come April 1.

The licenses are for services that include Internet access, Internet telephony, call back, International Direct Dial, virtual private networks, leased circuits and broadband communications.

These liberalizationis expected to attract S$3 billion worth of investments, and generate 2,500 new jobs here over the next three years.

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