SingTel mulls future of Optus satellite unit

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.

In pictures: Inside Optus' satellite facility

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.

Follow Adam Bender on Twitter: @WatchAdam

Follow Computerworld Australia on Twitter: @ComputerworldAU, or take part in the Computerworld conversation on LinkedIn: Computerworld Australia

Copyright © 2013 IDG Communications, Inc.

Download: EMM vendor comparison chart 2019
Shop Tech Products at Amazon