All five shareholders of 1-Net, provider of Singapore's core broadband network have signed the Sale and Purchase Agreement to fully divest their shares to the Media Corporation of Singapore (MediaCorp). 1-Net Singapore Pte Ltd was formed in 1997, as a consortium made up of Singapore Communications Investments Pte Ltd (SingCom), Singapore Cable Vision (SCV) and...Singapore, 27 September 2000 | For Immediate Release
All five shareholders of 1-Net, provider of Singapore's core broadband network have signed the Sale and Purchase Agreement to fully divest their shares to the Media Corporation of Singapore (MediaCorp).
1-Net Singapore Pte Ltd was formed in 1997, as a consortium made up of Singapore Communications Investments Pte Ltd (SingCom), Singapore Cable Vision (SCV) and Singapore Telecom (SingTel), to jump-start the development and rollout of the Singapore ONE core network infrastructure. When 1-Net was initially formed, SingCom had a 40% stake in 1-Net, while SCV and SingTel each had a 30% stake. SingCom subsequently divested 30% of its equity stake to Pacific Internet and StarHub Internet (previously known as CyberWay). Prior to the divestment, Pacific Internet and StarHub Internet each own 15% of 1-Net, while SingCom held a 10% stake in the broadband infrastructure provider.
SingCom is a wholly owned subsidiary of the IDA. Ms Yong Ying-I, Chief Executive Officer of IDA explains the rationale for the divestment of SingCom's shares in 1-Net. "The government played a key role in facilitating the set-up of 1-Net in 1997. This was in line with our objective then to jump-start the broadband industry in Singapore. However, there has always been an indication that the government would fully divest its stake in 1-Net at an appropriate time".
Ms Yong elaborates, "Three years after the launch of Singapore ONE, broadband has developed into a vibrant industry, with over 300 industry players reaching out to 250,000 users. With broadband taking off and the telecommunications industry fully liberalised, it is no longer necessary for IDA to have an ownership in the core broadband infrastructure. Nonetheless, we will continue to work closely with both local and overseas industry partners, to facilitate the development of innovative and exciting broadband applications for business, education and entertainment".
Mr Leong Shin Loong, Vice President of Business Development, SingTel, echoed similar sentiments about the divestment, "1-Net was created with the objective of developing a broadband network in Singapore and supporting the Singapore ONE program. The telecommunications market in Singapore is now fully liberalised and with the convergence of broadband, telecommunications and broadcast technologies and infrastructure, the sale of 1-Net to MediaCorp makes sense. This would be a milestone in the development of the broadband industry in Singapore."
"Although SCV has divested its shares in 1-Net, we will continue to support the Singapore ONE programme. We look forward to working closely with MediaCorp, the new owners of 1-Net, in the best possible manner", said Mr Thomas Ee, Vice President of Broadband Engineering Services at SCV.
Mr Terry Clontz, Chief Executive Officer of StarHub, remarked that "1-Net has served Singapore well in its quest to build a national broadband infrastructure. With the full liberalisation of the market, 1-Net is more likely to benefit from re-aligning its corporate and business strategy. While StarHub is giving up its small minority stake of 15% in 1-Net that has been held through StarHub Internet, we expect to continue a mutually beneficial working relationship with them on a commercial basis".
"The divestment of our stake in 1-Net is timely, given the liberalisation of the telecommunications market in Singapore and the fact that Pacific Internet is focusing on regional expansion. This is a win-win situation. MediaCorp will continue to provide the local connectivity services that we require on a commercial basis, while we benefit from a significant appreciation in the value of our 1-Net asset through this sale," said Mr Nicholas Lee, Chief Executive Officer of Pacific Internet Limited.
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE
PACIFIC INTERNET LTD
SINGAPORE CABLEVISION LTD
SINGAPORE TELECOM LTD STARHUB LTD
For media clarification, please contact the respective PR personnel:
About Infocomm Development Authority of Singapore
The Infocomm Development Authority of Singapore (IDA) is a dynamic organisation with an integrated perspective to developing, promoting and regulating info-communications in Singapore. In the fast-changing and converging spheres of telecommunications, information and media technologies, IDA will be the catalyst for change and growth in Singapore's evolution into a vibrant global info-communications technology centre. For more information, visit www.ida.gov.sg.
About Pacific Internet
Pacific Internet is listed on the NASDAQ stock exchange under the ticker symbol PCNTF. Pacific Internet offers award-winning services in six countries (Singapore, Hong Kong, the Philippines, Australia, India and Thailand) including Internet access, portal sites and the ultimate web lifestyle with the "4Cs" (connection, commerce, content and community) under Pacfusion.com. Pacific Internet won the "Best ISP in Asia-Pacific" award in 1999 from Telecom Asia, and also the "Best ISP in Singapore" award for three consecutive years (1997, 1998, 1999) from Computer World Publications. Please refer to www.pacnet.com for more information.
Mr Ross Gan
Tel: (65) 771-0733
Fax: (65) 872-1200
About Singapore Cable Vision
SCV completed the construction of its island-wide broadband network in Singapore in September 1999 and was designated as a public telecommunications licensee in April 2000. There are currently 235,000* homes subscribing to SCV MaxTV, the company's cable TV service and 22,000* homes on SCV MaxOnline, a broadband Internet access service via the cable modem. Cable telephony is poised to be SCV's third service via the broadband network. For more information, please refer to www.scv.com.sg. *figures as of 18 Sep 2000
Senior Manager, Corporate Communication
Tel: (65) 870-1736
Fax: (65) 773-0837
About Singapore Telecom
SingTel is Asia's leading telecommunications provider with a comprehensive portfolio of services that include voice and data services over fixed, wireless and Internet platforms. Serving both the corporate and residential markets, SingTel is committed to bringing the best of global communications to its Asia Pacific customers. It has built the infrastructure that has helped transform Singapore into a global hub and is today the country's largest company in terms of market capitalisation (about US$25 billion). The Singapore Group is expanding rapidly into overseas markets, with current investments of about S$5 billion (US$2.9 billion) in more than 80 joint ventures and associated companies in 20 countries. With a heritage of over 120 years, SingTel aims to be the Asian partner of choice for telecommunications operators across the world. More information about SingTel can be found at http://www.singtel.com.
Lim Seng Jin
Corporate Communications Manager
Tel: (65) 838-3682
Mobile: (65) 9678-3697
About StarHub Internet
StarHub Internet aims to become the preferred ISP in Singapore, known for its innovation, ease of doing business and making the Net work for customers. It will provide the best value and quality corporate and personal Internet access services by being customer-focused in building up its network and support infrastructure.
StarHub Internet is a wholly owned subsidiary of StarHub Pte Ltd -Singapore's new fixed and mobile telecommunications provider launched in April 2000. With this synergy, both StarHub and StarHub Internet are well poised to offer customers in Singapore a total info-communications solutions package customized to meet their requirements for reliable Internet services, innovative multimedia applications and fixed and mobile convergent services.
StarHub Internet was also awarded the "ISP of the Year" in Internet World Asia Industry Awards 2000 and twice as the winner in CNet Singapore's 'Incredible Service Provider' Poll conducted online in December 1999 and March 2000. More information on StarHub Internet can be found at www.starhub.com.
Ms Eileen Chua / Mr Robin Tan
Tel: (65) 6825-5167 / 6825-5166
Fax: (65) 6721-5015
Email: firstname.lastname@example.org / email@example.com