ST Telemedia finally makes its mark

ST Telemedia and VNPT Global last week announced their partnership, with the Singapore-based telecommunications investment firm to take a 10 per cent share in the latter. Dau Tu’s Song Ngoc asks Lee Theng Kiat, ST Telemedia’s president and CEO if the partnership will accelerate the firm’s development stride after five years in Vietnam.

Five years after ST Telemedia’s representative office was established in Vietnam, it has marked its first investment in a Vietnamese telecommunications firm. What is the significance of this investment to ST Telemedia?

ST Telemedia and VNPT Group share a productive, long standing relationship which first started with the signing of a Memorandum of Understanding (MOU) in 2005 to jointly explore business activities and information and knowledge sharing on management and operational issues. Last week’s announced investment is one of the many initiatives that resulted from that MOU.

This investment by ST Telemedia in a VNPT Group subsidiary, VNPT Global, is a significant milestone as it is our first investment in a Vietnamese company and signifies the importance ST Telemedia places on our close partnership with VNPT Group. The new partnership not only reaffirms our commitment to investing in Vietnam, but also underscores the strength of our long-term relationship with VNPT Group

ST Telemedia and VNPT Global will gain a number of benefits from this investment?

We are pleased to have the opportunity to invest in VNPT Global. We believe that the complementary strengths of ST Telemedia and VNPT Global will create a powerful strategic partnership for us to achieve our shared goals of seeking growth outside our respective domestic markets.

The partnership will broaden ST Telemedia and VNPT Global’s capabilities to access telecommunications opportunities internationally while VNPT Global will also be able to tap on ST Telemedia’s diverse investment and operational experience, expertise and best practices in matured and emerging markets to advance the performance of its existing operations.

I am confident that the combined strength and resources of all shareholders of VNPT Global will provide the company with unparalleled capabilities to pursue broad and diverse business opportunities in the global telecoms landscape.

What are the companies within the ST Telemedia group today?

ST Telemedia is a strategic partner committed to sustainable value creation through the pursuit of growth opportunities in the global telecommunications sector.

Today’s our key companies include Global Crossing, a leading global IP and Ethernet solutions provider with the world’s first integrated global IP-based network; TeleChoice, a leading regional diversified provider and enabler of innovative communication solutions; ST Teleport, Asia’s leading full-service satellite communications solution provider; Asia Mobile Holdings which holds interests in StarHub, Singapore’s fully-integrated info-communication company; Shenington Investments which in turn holds stakes in Mfone, Cambodia’s full service fixed line and mobile operator; and Lao Telecommunications Company, Laos’ largest telecommunications service provider.

In January this year, we have expanded our global mobile footprint with the completed our acquisition of Ireland’s largest telecommunications provider, eircom. ST Telemedia has extensive international experience in operating in successfully highly competitive and saturated telecom markets. For example, StarHub swiftly rose to become the second largest mobile service provider in Singapore despite being the third and last operator to enter Singapore’s saturated mobile phone market.

Can you describe ST Telemedia’s longer-term strategy in Vietnam?

ST Telemedia is keen to play a significant role in the growth and development of Vietnam’s promising telecoms market. Since establishing our representative office in Hanoi in 2005, we have spent a great amount of time with the business and social communities in Vietnam to gain a deeper understanding of the market.

We have also regularly engaged with Vietnam’s industry partners and government agencies to share market insights and technical know-how and explore possible business collaboration. We believe that our diverse international experience and expertise in operating telecoms companies in matured and emerging markets, coupled with our strong commitment in Asia, will bring strategic long term value to the telecoms companies in Vietnam.

Tags: ST Telemedia, Vietnam Telecom, Vietnam telecom companies, Vietnam telecom enterprises, vietnam telecom markets, Vietnam telecom sector, VNPT Global